Fortive Corp (FTV)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,206,600	1,210,400	1,206,000	1,195,500	1,133,700	1,113,700	1,074,500	1,015,500	987,400	898,100	848,500	827,500	812,800	795,100	730,300	621,600	539,400	495,400	454,300	447,300
Total assets	US$ in thousands	17,016,100	17,453,600	17,285,000	17,520,100	16,911,800	15,664,400	15,730,700	15,804,800	15,890,600	15,893,100	16,070,900	16,266,400	16,465,500	14,976,100	14,495,500	14,278,900	16,051,500	17,199,700	16,705,700	16,931,700
Operating ROA		7.09%	6.93%	6.98%	6.82%	6.70%	7.11%	6.83%	6.43%	6.21%	5.65%	5.28%	5.09%	4.94%	5.31%	5.04%	4.35%	3.36%	2.88%	2.72%	2.64%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,206,600K ÷ $17,016,100K
= 7.09%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's profitability by evaluating its operating income generated relative to its total assets.

For Fortive Corp, the operating ROA has shown a positive trend over the past few quarters. Starting at 2.64% in March 2020, the ratio has consistently increased, reaching 7.09% by December 2024. This indicates that the company has been able to generate more operating income from its assets over time.

The trend reflects positively on Fortive's operational efficiency and asset utilization. A rising operating ROA suggests that the company is effectively managing its assets to generate operating profits, which is a favorable sign for investors and stakeholders.

It is essential for Fortive to sustain or further improve its operating ROA to ensure continued profitability and efficiency in utilizing its assets. Monitoring this ratio alongside other financial metrics can provide valuable insights into the company's overall performance and financial health.