Fortive Corp (FTV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 816,800 | 1,133,700 | 987,400 | 812,800 | 539,400 |
| Long-term debt | US$ in thousands | 3,331,100 | 3,646,200 | 2,251,600 | 1,807,300 | 2,830,300 |
| Total stockholders’ equity | US$ in thousands | 10,188,600 | 10,318,900 | 9,683,400 | 9,512,200 | 8,964,200 |
| Return on total capital | 6.04% | 8.12% | 8.27% | 7.18% | 4.57% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $816,800K ÷ ($3,331,100K + $10,188,600K)
= 6.04%
Fortive Corp's return on total capital has shown a positive trend over the years, starting at 4.57% on December 31, 2020, and reaching 6.04% on December 31, 2024. The company experienced significant improvement in this ratio, peaking at 8.27% on December 31, 2022. However, there was a slight decline in 2023 to 8.12%. Overall, the company has been effectively utilizing its total capital to generate returns, although there was a slight dip in performance in 2024 compared to the previous year. Monitoring this ratio over time will be crucial to assess Fortive Corp's efficiency in deploying its capital for profitability.
Peer comparison
Dec 31, 2024