Fortive Corp (FTV)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,888,800	714,100	712,800	672,800	709,200	705,300	682,900	684,300	819,300	838,400	1,565,800	1,299,600	1,824,800	1,489,100	1,063,000	1,040,500	1,205,200	1,060,500	1,092,100	3,728,900
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	0	—	—	—	1,119,200	—	—	—	0	—	—	—
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
Cash ratio		1.05	0.30	0.28	0.26	0.26	0.27	0.26	0.27	0.22	0.29	0.61	0.53	1.03	0.49	0.37	0.49	0.35	0.36	0.39	1.41

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 of Fortive Corp has shown some fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q4 2023, the cash ratio significantly improved to 1.21 compared to the previous quarter's ratio of 0.41 in Q3 2023. This indicates that Fortive Corp had a higher level of cash and cash equivalents relative to its short-term obligations in the most recent quarter.

Looking further back, the cash ratio in Q4 2023 also showed an improvement compared to the same quarter in the previous year (Q4 2022) where it was at 0.36. This suggests that Fortive Corp has strengthened its liquidity position over the year.

It is worth noting that although there were fluctuations in the cash ratio over the quarters, Fortive Corp generally maintained a healthy level of liquidity, with the ratio consistently above 0.36 in most quarters. This indicates that the company has been able to meet its short-term obligations using its available cash reserves.

Overall, the increasing trend in the cash ratio for Fortive Corp indicates an improved ability to cover short-term liabilities with cash and cash equivalents, reflecting positively on the company's liquidity position.