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