Fortive Corp (FTV)

Quick ratio

		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	US$ in thousands	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	1,205,200	1,060,500	1,092,100	3,728,900
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	0	—	—	—	1,119,200	—	—	—	0	—	—	—
Receivables	US$ in thousands	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	1,384,500	1,332,000	1,315,200	1,146,600
Total current liabilities	US$ in thousands	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	3,467,200	2,916,300	2,791,200	2,639,600
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

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 variability over the past eight quarters. In Q4 2023, the quick ratio improved significantly to 1.75, indicating a strong ability to meet its short-term obligations with its most liquid assets. This is a positive sign as it suggests the company has ample liquid assets to cover its current liabilities without relying on slower-moving inventory.

In the previous quarter, Q3 2023, the quick ratio dropped to 0.79, which was a notable decrease from the previous quarter. This could signal potential liquidity challenges as the company's ability to cover its short-term liabilities with its quick assets decreased.

Looking further back, in Q2 and Q1 2023, the quick ratio remained relatively stable around 0.74 and 0.72, respectively. This suggests that the company's liquidity position was consistent during that period.

Comparing current ratios to the same quarters in the previous year, we see a slight improvement in Q4 2023 compared to Q4 2022, where the quick ratio was 0.71. This indicates an enhancement in the company's liquidity position over the year.

Overall, while there have been fluctuations in Fortive Corp's quick ratio over the past eight quarters, the most recent data point to a stronger liquidity position. It will be important to monitor future quarters to ensure the company maintains or improves its ability to cover short-term obligations with its quick assets.