Fortive Corp (FTV)

Working capital 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
Total current assets US$ in thousands 2,592,300 3,671,600 2,477,000 2,514,900 4,446,900
Total current liabilities US$ in thousands 2,238,400 1,791,300 2,727,100 3,714,900 2,860,800
Working capital turnover 17.68 3.15 — — 2.84

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,256,100K ÷ ($2,592,300K – $2,238,400K)
= 17.68

The working capital turnover ratio for Fortive Corp shows a fluctuating trend over the years. In 2020, the ratio was 2.84, indicating that the company generated $2.84 in net revenue for every dollar of working capital invested. The ratios for 2021 and 2022 are not available as indicated by "—". However, in 2023, the ratio increased to 3.15, implying a more efficient utilization of working capital to generate revenue. Notably, in 2024, there was a significant surge in the working capital turnover to 17.68, suggesting a substantial improvement in the efficiency of working capital management during that period. This sharp increase may be attributed to various factors such as tighter working capital controls, increased sales, or more effective inventory management practices. Overall, the varying ratios indicate fluctuations in Fortive Corp's ability to efficiently convert its working capital into revenue over the years.