Fortive Corp (FTV)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,923,600	5,709,200	5,059,600	4,504,200	7,208,600
Receivables	US$ in thousands	960,800	958,500	930,200	810,300	1,384,500
Receivables turnover		6.17	5.96	5.44	5.56	5.21

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,923,600K ÷ $960,800K
= 6.17

The receivables turnover ratio measures how many times a company collects its accounts receivable during a specific period. An increasing trend in the receivables turnover ratio generally indicates that a company is more effectively managing its accounts receivable and collecting payments from customers more efficiently.

For Fortive Corp, the receivables turnover has shown a generally increasing trend over the past five years, from 5.29 in 2019 to 6.31 in 2023. This suggests that Fortive has been able to collect its outstanding receivables more quickly over time.

A higher receivables turnover ratio is generally viewed favorably by investors and creditors as it indicates that the company is efficient in collecting payments from its customers. However, it is important to note that a very high ratio may also signal overly aggressive credit and collection policies, potentially leading to a higher risk of bad debts or strained customer relationships.

Overall, the increasing trend in Fortive Corp's receivables turnover ratio from 2019 to 2023 indicates improving efficiency in managing its accounts receivable, which is a positive indicator of the company's financial health and operational effectiveness.