Fortive Corp (FTV)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,256,100 | 5,923,600 | 5,709,200 | 5,059,600 | 4,504,200 |
| Receivables | US$ in thousands | 945,400 | 960,800 | 958,500 | 930,200 | 810,300 |
| Receivables turnover | 6.62 | 6.17 | 5.96 | 5.44 | 5.56 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,256,100K ÷ $945,400K
= 6.62
The receivables turnover for Fortive Corp has shown a consistent improvement over the years, indicating the company's efficiency in collecting outstanding receivables from customers. The turnover ratio increased from 5.56 in December 2020 to 6.62 in December 2024, reflecting a positive trend in managing its accounts receivable. This suggests that Fortive Corp has been more effective in converting its credit sales into cash, which is a favorable indication of its liquidity and operational effectiveness. The upward trend in receivables turnover signifies that the company has been successful in minimizing credit risk and maintaining a healthy cash flow position.
Peer comparison
Dec 31, 2024