Fortive Corp (FTV)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,182,400	1,186,200	1,181,800	1,171,300	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
Long-term debt	US$ in thousands	3,331,100	3,451,800	3,396,400	3,941,700	3,646,200	1,982,100	1,978,200	2,094,600	2,251,600	2,559,000	2,682,200	2,738,900	1,807,300	1,442,100	1,441,800	1,441,500	2,830,300	4,699,200	4,686,200	5,826,100
Total stockholders’ equity	US$ in thousands	10,188,600	10,554,900	10,499,300	10,476,700	10,318,900	10,077,800	9,965,800	9,869,900	9,683,400	9,390,800	9,444,300	9,561,400	9,512,200	9,318,000	9,205,000	9,009,000	8,964,200	7,676,100	7,395,300	7,242,100
Return on total capital		8.75%	8.47%	8.50%	8.12%	8.12%	9.23%	9.00%	8.49%	8.27%	7.52%	7.00%	6.73%	7.18%	7.39%	6.86%	5.95%	4.57%	4.00%	3.76%	3.42%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,182,400K ÷ ($3,331,100K + $10,188,600K)
= 8.75%

Fortive Corp's return on total capital has shown a generally increasing trend from 3.42% in March 2020 to 8.75% in December 2024. The company's return on total capital improved consistently over the periods, with fluctuations observed in some quarters. The metric reached its peak at 9.23% in September 2023 before slightly declining. This indicates that Fortive Corp has been effectively utilizing its total capital to generate profits for its stakeholders. Overall, the company's ability to generate returns on the total capital has strengthened over the analyzed period, reflecting positively on its operational efficiency and financial performance.