Fortive Corp (FTV)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,646,200	2,251,600	1,807,300	2,830,300	4,826,200
Total assets	US$ in thousands	16,911,800	15,890,600	16,465,500	16,051,500	17,439,000
Debt-to-assets ratio		0.22	0.14	0.11	0.18	0.28

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,646,200K ÷ $16,911,800K
= 0.22

The debt-to-assets ratio of Fortive Corp has shown a decreasing trend over the past five years, declining from 0.36 in 2019 to 0.22 in 2023. This indicates that the company has been effectively managing its debt levels relative to its total assets. A lower debt-to-assets ratio generally suggests a lower financial risk and a stronger financial position, as it indicates that a smaller portion of the company's assets is financed by debt.

The decrease in the ratio could signify that Fortive Corp has been paying down its debt obligations or increasing its assets. This could be a positive sign for investors as it may indicate improved financial stability and operational efficiency. However, it's important to assess this ratio in conjunction with other financial metrics to get a holistic view of the company's financial health.