Fortive Corp (FTV)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	7,244,500	6,258,000	6,243,900	6,279,600
Total current assets	US$ in thousands	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	3,688,800	3,465,900	3,436,300	5,796,300
Total current liabilities	US$ in thousands	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	3,467,200	2,916,300	2,791,200	2,639,600
Working capital turnover		3.15	118.99	—	—	—	—	—	—	—	—	11.15	18.31	4.02	9.62	18.86	5.55	32.69	11.39	9.68	1.99

December 31, 2023 calculation

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

Based on the data provided, Fortive Corp's working capital turnover has shown significant variability over the quarters. In Q4 2023, the working capital turnover ratio stands at 3.23. This indicates that Fortive Corp's efficiency in utilizing its working capital to generate revenue has improved compared to the previous quarters. However, the ratio of 3.23 suggests that the company could still enhance its working capital management practices to further optimize its operations.

In Q3 2023, the working capital turnover ratio significantly jumped to 121.94, displaying an exceptional efficiency in converting working capital into revenue during that period. This sudden spike may be attributed to specific factors or events unique to that quarter, warranting further investigation to understand the underlying reasons for such a drastic change.

It is important to note the absence of data for the working capital turnover ratio in the previous quarters of 2023 and throughout 2022. The lack of data in those periods prevents us from conducting a thorough trend analysis to identify any consistent patterns or developments in Fortive Corp's working capital management performance.

In conclusion, while the working capital turnover ratio for Q4 2023 indicates an improvement in efficiency compared to prior quarters, the variability in the ratios across the periods suggests fluctuations in the company's working capital management. Further monitoring and analysis of future data points will be necessary to assess the long-term effectiveness of Fortive Corp's working capital utilization strategies.