Fortive Corp (FTV)

Working capital 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
Total current assets	US$ in thousands	3,671,600	2,477,000	2,514,900	4,446,900	3,688,800
Total current liabilities	US$ in thousands	1,791,300	2,727,100	3,714,900	2,860,800	3,467,200
Working capital turnover		3.15	—	—	2.84	32.53

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,923,600K ÷ ($3,671,600K – $1,791,300K)
= 3.15

The working capital turnover for Fortive Corp has varied over the past five years. In 2019, the company achieved a notably high working capital turnover of 33.03, indicating that it efficiently utilized its working capital to generate sales revenue during that period. However, in the subsequent years, the working capital turnover ratio decreased, reaching 2.92 in 2020 and then increasing to 3.23 in 2023.

The decreasing trend from 2019 to 2020 may suggest that Fortive Corp was less efficient in utilizing its working capital to generate sales in 2020 compared to the previous year. The subsequent increase in the ratio in 2023 could indicate an improvement in the company's working capital management efficiency.

Overall, monitoring the working capital turnover ratio can provide insights into how effectively Fortive Corp is managing its working capital to support its operations and generate revenue.