Fortive Corp (FTV)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	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	443,900	598,500	783,700	1,012,500
Total assets	US$ in thousands	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	17,439,000	16,660,400	16,468,100	15,656,200
Operating ROA		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%	2.55%	3.59%	4.76%	6.47%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,133,700K ÷ $16,911,800K
= 6.70%

Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating operating profits from its assets. For Fortive Corp, the operating ROA has shown a positive trend over the past eight quarters. Starting at 5.09% in Q1 2022, the ratio has steadily increased to 6.70% in Q4 2023.

The consistent improvement in operating ROA reflects Fortive's ability to generate higher operating income relative to its assets over time. This indicates better operational efficiency and asset utilization within the company. Investors and stakeholders may view this trend positively as it suggests that Fortive is effectively managing its assets to drive profitability.

The company's operating ROA performance can also be compared to industry peers and benchmarks to assess its competitiveness and profitability relative to its asset base. Overall, the increasing trend in Fortive Corp's operating ROA signals operational effectiveness and financial health, which can be a key indicator of long-term sustainable growth.