Fortive Corp (FTV)

Fortive Corp's solvency ratios indicate its ability to meet its long-term financial obligations and the extent to which it relies on debt to fund its operations.

The Debt-to-assets ratio decreased from 0.18 in 2020 to 0.11 in 2021, suggesting a lower proportion of assets financed by debt. However, this ratio increased to 0.22 by 2023, reflecting a higher reliance on debt to fund its assets. The ratio decreased slightly to 0.20 in 2024.

The Debt-to-capital ratio decreased from 0.24 in 2020 to 0.16 in 2021, indicating a lower proportion of capital funded by debt. However, this ratio increased to 0.26 by 2023, signaling an increased dependence on debt for capital. The ratio remained relatively stable at 0.25 in 2024.

The Debt-to-equity ratio decreased from 0.32 in 2020 to 0.19 in 2021, suggesting a lower level of debt relative to equity. However, this ratio increased to 0.35 by 2023, indicating a higher level of debt in relation to equity. The ratio then decreased slightly to 0.33 in 2024.

The Financial leverage ratio decreased from 1.79 in 2020 to 1.64 in 2022, showing a decline in the company's use of debt in its capital structure. However, the ratio slightly increased to 1.67 by 2024, indicating a slight increase in financial leverage.

Overall, Fortive Corp's solvency ratios show fluctuations in its debt levels and financial leverage over the years, which may impact its long-term financial stability and risk management strategies. Analyzing these ratios can provide valuable insights into the company's financial health and its ability to meet its debt obligations.

---

Coverage ratios

Based on the provided data on Fortive Corp's interest coverage ratio, we can observe an improving trend over the years.

As of December 31, 2020, the interest coverage ratio stood at 3.63, indicating that the company's operating income was able to cover its interest expenses approximately 3.63 times. Subsequently, by December 31, 2021, the interest coverage ratio increased to 7.88, showing a significant improvement from the previous year.

By December 31, 2022, the interest coverage ratio further improved to 10.04, reflecting the company's increased ability to meet its interest obligations comfortably. However, there is no data available for December 31, 2023, and December 31, 2024, suggesting that these values are not provided or not applicable.

Overall, the trend in Fortive Corp's interest coverage ratio demonstrates a positive trajectory, indicating that the company's profitability and operating performance are strengthening relative to its interest payment obligations. This trend is generally favorable as a higher interest coverage ratio signifies better financial health and risk management for the company.