Fortive Corp (FTV)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	1,888,800	709,200	819,300	1,824,800	1,205,200
Short-term investments	US$ in thousands	—	—	0	1,119,200	0
Receivables	US$ in thousands	960,800	958,500	930,200	810,300	1,384,500
Total current liabilities	US$ in thousands	1,791,300	2,727,100	3,714,900	2,860,800	3,467,200
Quick ratio		1.59	0.61	0.47	1.31	0.75

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,888,800K + $—K + $960,800K) ÷ $1,791,300K
= 1.59

The quick ratio of Fortive Corp has shown fluctuations over the past five years. In 2019, the quick ratio was 0.88, indicating that the company had $0.88 in liquid assets to cover each dollar of current liabilities. This ratio improved in 2020 to 1.38, suggesting a healthier liquidity position with $1.38 in liquid assets available for every dollar of current liabilities.

However, in 2021, the quick ratio decreased to 0.54, indicating a significant decline in the company's ability to meet its short-term obligations with its liquid assets. The quick ratio further improved in 2022 to 0.71 but remained below the ideal value of 1.

In 2023, the quick ratio increased substantially to 1.75, signaling a strong improvement in the company's liquidity position and its ability to cover short-term liabilities more comfortably.

Overall, the trend in Fortive Corp's quick ratio has been volatile, with fluctuations from year to year. It is essential for the company to maintain a healthy quick ratio above 1 to ensure it has an adequate level of liquid assets to meet its short-term obligations without relying too heavily on inventory.