Fortive Corp (FTV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.64% | 60.67% | 58.91% | 59.43% | 57.91% |
| Operating profit margin | 19.29% | 19.14% | 17.29% | 16.06% | 11.98% |
| Pretax margin | 15.50% | 16.73% | 15.30% | 13.28% | 37.05% |
| Net profit margin | 13.31% | 14.62% | 13.23% | 12.02% | 35.82% |
Fortive Corp's profitability ratios have shown varying trends over the years. The Gross Profit Margin has generally been increasing, reaching 60.67% at the end of 2023, indicating the company's ability to efficiently produce goods and services.
The Operating Profit Margin has also exhibited a strong upward trend, starting at 11.98% in 2020 and reaching 19.29% by the end of 2024. This trend indicates that Fortive Corp has been effectively managing its operating expenses while generating earnings from its core business operations.
However, the Pretax Margin witnessed fluctuations over the years, with a significant drop in 2021 but a recovery in subsequent years. This ratio stood at 16.73% by the end of 2023, indicating the company's ability to generate profits before accounting for taxes.
Similarly, the Net Profit Margin has displayed a decreasing trend after a peak in 2020, reflecting challenges in maintaining profitability after all expenses. The ratio stood at 13.31% by the end of 2024, indicating that Fortive Corp needs to focus on controlling costs and enhancing operational efficiency to improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.09% | 6.70% | 6.21% | 4.94% | 3.36% |
| Return on assets (ROA) | 4.89% | 5.12% | 4.75% | 3.69% | 10.05% |
| Return on total capital | 6.04% | 8.12% | 8.27% | 7.18% | 4.57% |
| Return on equity (ROE) | 8.17% | 8.39% | 7.80% | 6.40% | 18.00% |
Fortive Corp's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been gradually increasing from 3.36% in 2020 to 7.09% in 2024. This indicates the company's ability to generate operating profits from its assets has been improving steadily.
- Return on assets (ROA) was at its highest in 2020 at 10.05%, but then decreased in the following years. While it recovered slightly in 2023 and 2024, the overall trend suggests some inconsistency in the company's ability to generate overall profitability from its assets.
- Return on total capital shows a similar pattern to Operating ROA, increasing from 4.57% in 2020 to 8.27% in 2022, before declining to 6.04% in 2024. This ratio reflects the company's efficiency in generating returns for both debt and equity holders.
- Return on equity (ROE) has also fluctuated over the years, with a significant drop from 18.00% in 2020 to 6.40% in 2021. However, it has shown a slight recovery since then, reaching 8.17% in 2024. This ratio indicates the company's ability to generate profits for its shareholders based on the equity invested.
Overall, while there have been fluctuations in profitability ratios, Fortive Corp has shown some improvement in generating returns on assets and equity, although there is room for further consistency and growth in profitability.