Fortive Corp (FTV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 813,300 | 1,888,800 | 709,200 | 819,300 | 1,824,800 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 1,119,200 |
| Receivables | US$ in thousands | 945,400 | 960,800 | 958,500 | 930,200 | 810,300 |
| Total current liabilities | US$ in thousands | 2,238,400 | 1,791,300 | 2,727,100 | 3,714,900 | 2,860,800 |
| Quick ratio | 0.79 | 1.59 | 0.61 | 0.47 | 1.31 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($813,300K
+ $—K
+ $945,400K)
÷ $2,238,400K
= 0.79
The quick ratio of Fortive Corp has varied over the years, indicating fluctuations in the company's short-term liquidity position. As of December 31, 2020, the quick ratio stood at 1.31, suggesting that the company had $1.31 in liquid assets available to cover each $1 of its current liabilities.
However, by the end of 2021, the quick ratio dropped significantly to 0.47, indicating a potential liquidity strain as the company had only $0.47 in liquid assets for every $1 of current liabilities.
In 2022, the quick ratio improved to 0.61, but it remained below the ideal value of 1. This suggests that Fortive Corp may still have had some challenges meeting its short-term obligations with its readily available assets.
The quick ratio saw a significant improvement by December 31, 2023, reaching 1.59, indicating a stronger liquidity position and a greater ability to cover its short-term liabilities with liquid assets.
However, by the end of 2024, the quick ratio dropped to 0.79, which is lower than the ratio in 2023 but still above 1, suggesting that the company may have faced some liquidity challenges during that period.
Overall, fluctuations in the quick ratio of Fortive Corp reflect changes in its short-term liquidity and ability to meet immediate financial obligations with available liquid assets. It would be important for stakeholders to closely monitor these trends to assess the company's financial health and liquidity management.
Peer comparison
Dec 31, 2024