Fortive Corp (FTV)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	6,212,100	6,142,000	6,072,100	6,038,600	5,923,600	5,866,200	5,831,100	5,780,100	5,709,200	5,604,400	5,475,800	5,353,200	5,254,700	5,204,800	5,762,200	5,970,500	6,381,200	7,058,700	7,054,500	7,346,800
Total assets	US$ in thousands	17,016,100	17,453,600	17,285,000	17,520,100	16,911,800	15,664,400	15,730,700	15,804,800	15,890,600	15,893,100	16,070,900	16,266,400	16,465,500	14,976,100	14,495,500	14,278,900	16,051,500	17,199,700	16,705,700	16,931,700
Total asset turnover		0.37	0.35	0.35	0.34	0.35	0.37	0.37	0.37	0.36	0.35	0.34	0.33	0.32	0.35	0.40	0.42	0.40	0.41	0.42	0.43

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,212,100K ÷ $17,016,100K
= 0.37

Total asset turnover is a financial ratio that measures a company's ability to generate sales from its assets. It indicates how efficiently a company is using its assets to generate revenue.

Analyzing the total asset turnover trend for Fortive Corp from March 31, 2020, to December 31, 2024, we observe a gradual decline in the ratio from 0.43 to 0.37, with fluctuations in between. The ratio has been hovering around the 0.35 to 0.37 range in recent quarters.

A decreasing total asset turnover ratio may suggest that Fortive Corp is becoming less efficient in generating revenue from its total assets over time. This could be due to various reasons such as an increase in total assets without proportionate growth in sales, inefficient asset utilization, or declining sales relative to the asset base.

It is essential for Fortive Corp to closely monitor and address the factors impacting its total asset turnover to ensure optimal asset utilization and maintain financial efficiency. Further analysis of the company's operational strategies and asset management practices may be necessary to improve the total asset turnover ratio and overall financial performance.