Fortive Corp (FTV)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	3,671,600	2,477,000	2,514,900	4,446,900	3,688,800
Total current liabilities	US$ in thousands	1,791,300	2,727,100	3,714,900	2,860,800	3,467,200
Current ratio		2.05	0.91	0.68	1.55	1.06

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,671,600K ÷ $1,791,300K
= 2.05

The current ratio for Fortive Corp has shown significant fluctuations over the past five years, ranging from a low of 0.68 in 2021 to a high of 2.05 in 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets, with a higher ratio indicating stronger short-term liquidity.

In 2021, the current ratio was relatively low at 0.68, suggesting potential liquidity challenges in meeting short-term obligations. However, there was a notable improvement in 2022, with the ratio increasing to 0.91 but still below the ideal threshold of 1. This indicates that the company may have faced liquidity issues in the previous year but made some progress in managing its short-term obligations.

The most significant improvement is seen in 2023, where the current ratio spiked to 2.05, reflecting a substantial strengthening of Fortive Corp's short-term liquidity position. This increase suggests that the company's current assets have more than doubled its current liabilities, indicating a healthier financial position in terms of meeting short-term obligations.

Overall, the trend of the current ratio for Fortive Corp demonstrates volatility but also improvement in liquidity management over the years, with the most recent ratio of 2.05 signaling a more robust financial position in the short term compared to previous years.