Fortive Corp (FTV)

Return on total capital

		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
Earnings before interest and tax (EBIT) (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
Long-term debt	US$ in thousands	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	4,826,200	5,015,600	5,196,500	4,728,300
Total stockholders’ equity	US$ in thousands	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	7,387,000	7,151,700	7,011,600	6,850,700
Return on total capital		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%	3.63%	4.92%	6.42%	8.74%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 generally positive trend over the past eight quarters. The return on total capital has consistently improved from 6.22% in Q1 2022 to 8.12% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors. The upward trajectory in the return on total capital suggests that Fortive Corp's management has been successful in deploying its capital efficiently and profitably. Overall, the increasing trend in the return on total capital reflects positively on the company's financial performance and ability to generate returns for its shareholders.