Fortive Corp (FTV)

The solvency ratios of Fortive Corp over the past five years indicate a generally improving financial health and decreasing reliance on debt. The Debt-to-assets ratio has shown a decreasing trend from 0.36 in 2019 to 0.22 in 2023, signifying that the proportion of the company's assets financed by debt has declined.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also shown a consistent reduction over the years, from 0.46 to 0.26 and 0.86 to 0.35 respectively. These ratios reflect a lower percentage of debt in the capital structure and less reliance on debt funding compared to equity.

Furthermore, the Financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has decreased from 2.36 in 2019 to 1.64 in 2023. This indicates that the company has been gradually decreasing its financial leverage and becoming less indebted over time.

Overall, the decreasing trend in these solvency ratios suggests that Fortive Corp has been effectively managing its debt levels and improving its solvency position, which can enhance its financial stability and ability to meet its financial obligations in the long run.

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Coverage ratios

Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

Fortive Corp's interest coverage ratio has fluctuated over the past five years, with a peak of 10.23 in 2022 and a low of 3.63 in 2020. The ratio improved in 2023 to 9.18, signaling the company's increased ability to cover its interest expenses. This suggests that Fortive Corp's earnings before interest and taxes are sufficient to comfortably cover its interest payments, providing a buffer against potential financial risks related to debt obligations.

Overall, the trend in Fortive Corp's interest coverage ratio indicates a generally healthy financial position with a gradual improvement in its ability to service its interest expenses over the years. However, it's worth noting that further analysis of the company's financial health and risk management strategies would provide a more comprehensive assessment of its overall financial stability.