Fortive Corp (FTV)

Liquidity ratios

	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
Current ratio	2.05	1.02	0.96	0.93	0.91	0.94	0.94	0.96	0.68	0.85	1.20	1.13	1.55	1.24	1.13	1.62	1.06	1.19	1.23	2.20
Quick ratio	1.59	0.68	0.64	0.61	0.61	0.62	0.26	0.27	0.47	0.29	0.61	0.53	1.31	0.89	0.76	1.11	0.75	0.82	0.86	1.85
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

Fortive Corp's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio increased from 0.91 in Q4 2022 to 2.05 in Q4 2023, indicating a significant improvement in the company's short-term liquidity position. This suggests that Fortive Corp has more than enough current assets to cover its current liabilities.

Similarly, the quick ratio also demonstrated an increase from 0.71 in Q4 2022 to 1.75 in Q4 2023. The quick ratio excludes inventory from current assets, focusing on the most liquid assets that can be quickly converted into cash to meet short-term obligations. This improvement reflects a strengthening ability of Fortive Corp to meet its immediate liabilities without relying on inventory.

The cash ratio, which measures the ability of a company to cover its current liabilities with cash and cash equivalents, also displayed improvement over the quarters, increasing from 0.36 in Q4 2022 to 1.21 in Q4 2023. This indicates that Fortive Corp has a sufficient level of cash to meet its short-term obligations in Q4 2023.

Overall, the trend in the liquidity ratios of Fortive Corp shows a positive trajectory, with significant improvements in the current, quick, and cash ratios. This suggests that the company has enhanced its ability to meet its short-term financial obligations and has strengthened its liquidity position over the quarters.

Additional liquidity measure

		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 conversion cycle	days	53.88	55.92	56.72	57.70	54.72	57.74	43.36	44.71	60.89	64.16	53.12	47.23	44.10	55.63	54.39	60.06	49.22	76.60	76.49	60.30

The cash conversion cycle of Fortive Corp has shown fluctuations over the past eight quarters. The trend indicates that the company has been able to slightly reduce its cash conversion cycle in Q4 2023 compared to the previous two quarters, which is a positive sign for efficiency in managing its working capital.

However, the cash conversion cycle has been higher in the past four quarters compared to the same quarters in the previous year. This may indicate a longer time taken by the company to turn its investments in inventory and accounts receivable into cash, raising concerns about liquidity and operational efficiency.

Overall, Fortive Corp should focus on optimizing its inventory management and accounts receivable collection processes to shorten the cash conversion cycle, improve cash flow, and enhance its overall financial performance.