Fortive Corp (FTV)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 1,133,700 987,400 812,800 539,400 443,900
Long-term debt US$ in thousands 3,646,200 2,251,600 1,807,300 2,830,300 4,826,200
Total stockholders’ equity US$ in thousands 10,318,900 9,683,400 9,512,200 8,964,200 7,387,000
Return on total capital 8.12% 8.27% 7.18% 4.57% 3.63%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,133,700K ÷ ($3,646,200K + $10,318,900K)
= 8.12%

Fortive Corp's return on total capital has shown a steady increase over the past five years, starting at 7.32% in 2019 and reaching 8.12% in 2023. This indicates the company's ability to generate profits relative to the total capital employed in its operations. The consistent improvement in return on total capital reflects efficient capital utilization and effective management of assets and liabilities. It suggests that Fortive Corp is enhancing its operational efficiency and potentially creating more value for its investors. The upward trend in this ratio is a positive signal for the company's financial health and performance.


Peer comparison

Dec 31, 2023