Fortive Corp (FTV)

Quick ratio

		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	US$ in thousands	813,300	811,300	644,100	704,600	1,888,800	714,100	712,800	672,800	709,200	705,300	682,900	684,300	819,300	838,400	1,565,800	1,299,600	1,824,800	1,489,100	1,063,000	1,040,500
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	0	—	—	—	1,119,200	—	—	—
Receivables	US$ in thousands	945,400	912,200	934,500	962,600	960,800	925,400	935,200	940,700	958,500	901,000	—	—	930,200	—	—	—	810,300	1,207,600	1,129,200	1,317,600
Total current liabilities	US$ in thousands	2,238,400	2,100,800	2,045,800	1,738,700	1,791,300	2,420,000	2,585,000	2,630,100	2,727,100	2,592,100	2,611,300	2,561,600	3,714,900	2,868,900	2,569,700	2,474,800	2,860,800	3,041,000	2,876,400	2,121,100
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

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 fluctuated over the reporting periods. It stood at 1.11 as of March 31, 2020, indicating that the company had $1.11 in liquid assets to cover each dollar of current liabilities. Subsequently, the ratio decreased to 0.76 as of June 30, 2020, suggesting a decrease in the company's ability to meet its short-term obligations with its most liquid assets.

The ratio showed some improvement by December 31, 2020, reaching 1.31, reflecting a stronger liquidity position. However, by March 31, 2021, the quick ratio dropped significantly to 0.53, raising concerns about the company's short-term liquidity.

Throughout the following periods, the quick ratio remained variable, indicating fluctuations in Fortive Corp's ability to quickly cover its current liabilities with its liquid assets. The ratio ranged from 0.27 on March 31, 2022, to 1.59 on December 31, 2023, showing a mix of strengths and weaknesses in the company's liquidity profile.

Overall, close monitoring of Fortive Corp's quick ratio is recommended to assess its short-term liquidity position and ability to handle upcoming financial obligations.