Fortive Corp (FTV)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,888,800	709,200	819,300	1,824,800	1,205,200
Short-term investments	US$ in thousands	—	—	0	1,119,200	0
Total current liabilities	US$ in thousands	1,791,300	2,727,100	3,714,900	2,860,800	3,467,200
Cash ratio		1.05	0.26	0.22	1.03	0.35

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,888,800K + $—K) ÷ $1,791,300K
= 1.05

The cash ratio for Fortive Corp has shown variability over the past five years. In 2023, the cash ratio was 1.21, indicating that the company had $1.21 in cash and cash equivalents for every dollar of current liabilities, reflecting a strong liquidity position. This is a significant improvement compared to the previous year, 2022, when the cash ratio was 0.36.

Looking further back, in 2021, the cash ratio was 0.29, which was the lowest among the five years analyzed, suggesting a weaker liquidity position at that time. However, there was a notable increase in 2022 to 1.10, indicating a substantial improvement in liquidity.

In 2020, the cash ratio stood at 1.10, reflecting a strong liquidity position similar to 2023. In contrast, in 2019, the cash ratio was 0.48, indicating lower liquidity compared to the more recent years.

Overall, the trend in the cash ratio for Fortive Corp has been positive in recent years, with a significant improvement in liquidity position from 2021 to 2023. Investors and stakeholders may view this improvement favorably as it suggests the company has sufficient cash reserves to meet its short-term obligations.