Fortive Corp (FTV)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Current ratio	1.16	1.25	1.23	1.50	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
Quick ratio	0.79	0.82	0.77	0.96	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
Cash ratio	0.36	0.39	0.31	0.41	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

Fortive Corp's liquidity ratios show fluctuations over the periods analyzed. The current ratio, which indicates the company's ability to cover short-term obligations with its current assets, has been above 1 for most quarters, although it decreased from 2.05 in December 2023 to 0.91 in December 2022 before rising again to 1.16 in December 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also fluctuated. It dropped to 0.27 in March 2022 but recovered to 1.59 in December 2023 before declining to 0.79 in December 2024.

The cash ratio, representing the most liquid assets available to cover current liabilities, generally remained relatively stable. It peaked at 1.05 in December 2023 but fell to 0.36 in December 2024.

Overall, while the current ratio remained mostly above 1, indicating a healthy liquidity position, the quick and cash ratios showed more variability, highlighting potential fluctuations in the company's ability to meet short-term obligations without relying on inventory. Management should closely monitor these ratios to ensure the company maintains adequate liquidity levels over time.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash conversion cycle	days	46.11	49.85	51.48	51.83	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

The cash conversion cycle of Fortive Corp has shown fluctuations over the past few years. The cycle indicates the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data provided, we observe that the cash conversion cycle decreased from 60.06 days as of March 31, 2020, to 44.10 days by December 31, 2020. This decrease suggests an improvement in the efficiency of the company in managing its working capital during that period.

Subsequently, the cycle increased to 64.16 days by September 30, 2021, but then decreased again to 43.36 days by June 30, 2022. It remained relatively stable over the next few quarters, ranging between 49.85 to 51.48 days as of December 31, 2024.

Overall, the trend shows that Fortive Corp has been able to effectively manage its cash conversion cycle, with occasional fluctuations in the number of days. A lower cash conversion cycle indicates that the company is able to convert its investments back into cash quickly, which is generally a positive indicator of operational efficiency and liquidity management.