Fortive Corp (FTV)

Working capital 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 current assets	US$ in thousands	2,592,300	2,635,200	2,519,500	2,613,900	3,671,600	2,469,300	2,474,600	2,455,300	2,477,000	2,447,900	2,445,300	2,447,700	2,514,900	2,425,300	3,086,400	2,800,900	4,446,900	3,774,700	3,250,400	3,445,600
Total current liabilities	US$ in thousands	2,238,400	2,100,800	2,045,800	1,738,700	1,791,300	2,420,000	2,585,000	2,630,100	2,727,100	2,592,100	2,611,300	2,561,600	3,714,900	2,868,900	2,569,700	2,474,800	2,860,800	3,041,000	2,876,400	2,121,100
Working capital turnover		17.55	11.49	12.82	6.90	3.15	118.99	—	—	—	—	—	—	—	—	11.15	18.31	4.02	9.62	18.86	5.55

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,212,100K ÷ ($2,592,300K – $2,238,400K)
= 17.55

The working capital turnover of Fortive Corp has fluctuated over the past few years, ranging from as low as 3.15 to as high as 118.99. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

A higher working capital turnover ratio suggests that Fortive is efficiently utilizing its working capital to generate sales, which is a positive sign as it indicates effective management of current assets and liabilities. On the other hand, a lower ratio could imply that the company is struggling to convert its working capital into sales.

It is important to note that the working capital turnover ratio should be analyzed in conjunction with other financial ratios and performance indicators to get a comprehensive understanding of Fortive's overall financial health and operational efficiency. Further monitoring of this ratio will help in assessing the company's liquidity management and operational effectiveness over time.