Fortive Corp (FTV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.67% | 58.91% | 59.43% | 57.91% | 34.45% |
| Operating profit margin | 19.14% | 17.29% | 16.06% | 11.98% | 6.16% |
| Pretax margin | 16.73% | 15.30% | 13.28% | 37.05% | 11.20% |
| Net profit margin | 14.62% | 13.23% | 12.02% | 35.82% | 10.25% |
Fortive Corp's profitability ratios have shown positive trends over the past five years. The gross profit margin has been steadily increasing, reaching 59.26% in 2023, indicating the company's ability to efficiently produce goods and services. The operating profit margin has also shown improvement, with a consistent upward trend, reflecting effective cost management and operational efficiency.
The pretax margin has fluctuated over the years, with a significant decrease in 2021 followed by a recovery in 2023. This ratio measures the company's ability to generate profit before taxes relative to its revenue. Fortive Corp's net profit margin has generally been on the rise, reaching 14.27% in 2023, demonstrating the company's ability to effectively manage its expenses and generate profit from its operations.
Overall, Fortive Corp's profitability ratios exhibit a positive trajectory, highlighting the company's ability to maintain and improve its profitability over time.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.70% | 6.21% | 4.94% | 3.36% | 2.55% |
| Return on assets (ROA) | 5.12% | 4.75% | 3.69% | 10.05% | 4.24% |
| Return on total capital | 8.12% | 8.27% | 7.18% | 4.57% | 3.63% |
| Return on equity (ROE) | 8.39% | 7.80% | 6.40% | 18.00% | 10.00% |
The profitability ratios of Fortive Corp have been relatively stable over the past five years. Operating return on assets (Operating ROA) has shown a gradual increase from 5.76% in 2019 to 6.70% in 2023, indicating the company's ability to generate profits from its assets in its core operations.
Return on assets (ROA) has fluctuated but generally increased from 3.84% in 2019 to 5.12% in 2023, suggesting that the company has been more efficient in utilizing its total assets to generate profits.
Return on total capital has also shown an upward trend, improving from 7.32% in 2019 to 8.12% in 2023, signifying the company's ability to generate returns for both shareholders and debt holders.
Return on equity (ROE) has been relatively steady, with a slight increase from 9.07% in 2019 to 8.39% in 2023. This indicates the company's ability to generate profits from the equity invested by shareholders.
Overall, Fortive Corp's profitability ratios demonstrate a consistent performance in generating returns for investors and effectively utilizing assets to drive profitability.