Fortive Corp (FTV)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,592,300 | 3,671,600 | 2,477,000 | 2,514,900 | 4,446,900 |
| Total current liabilities | US$ in thousands | 2,238,400 | 1,791,300 | 2,727,100 | 3,714,900 | 2,860,800 |
| Current ratio | 1.16 | 2.05 | 0.91 | 0.68 | 1.55 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,592,300K ÷ $2,238,400K
= 1.16
The current ratio is a key liquidity ratio that indicates a company's ability to cover its short-term obligations with its current assets. For Fortive Corp, the current ratio has fluctuated over the past five years as follows:
- December 31, 2020: 1.55
- December 31, 2021: 0.68
- December 31, 2022: 0.91
- December 31, 2023: 2.05
- December 31, 2024: 1.16
A current ratio above 1 indicates that a company has more current assets than current liabilities, suggesting a healthy liquidity position. Fortive's current ratio in 2020 was 1.55, indicating a strong ability to cover its short-term obligations. However, the ratio decreased significantly in 2021 to 0.68, which may raise concerns about the company's ability to meet short-term liabilities with its current assets.
In 2022, the current ratio improved slightly to 0.91, but it remained below 1, indicating ongoing liquidity challenges. The ratio saw a significant improvement in 2023 to 2.05, suggesting a more robust liquidity position compared to previous years. However, in 2024, the current ratio declined to 1.16, showing a slight weakening in liquidity compared to 2023.
Overall, Fortive Corp's current ratio has exhibited fluctuations, with some years showing stronger liquidity positions than others. It is important for investors and stakeholders to closely monitor the company's current ratio to assess its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2024