Fortive Corp (FTV)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	10,318,900	9,683,400	9,512,200	8,964,200	7,387,000
Debt-to-capital ratio		0.26	0.19	0.16	0.24	0.40

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,646,200K ÷ ($3,646,200K + $10,318,900K)
= 0.26

The debt-to-capital ratio of Fortive Corp has shown a decreasing trend over the last five years, indicating a positive sign as the company has been gradually reducing its reliance on debt to finance its operations relative to its total capital structure.

In 2019, the ratio was the highest at 0.46, reflecting a higher proportion of debt in the company's capital structure. However, the ratio has been on a declining trajectory since then, reaching 0.26 at the end of 2023. This could suggest that Fortive has been effectively managing its debt levels, either by paying down debt or by increasing equity in the capital structure.

A lower debt-to-capital ratio generally indicates lower financial risk and better financial health for a company, as it implies a lower dependency on borrowed funds. It also signifies a stronger ability to meet financial obligations and withstand economic downturns.

Overall, the decreasing trend in Fortive Corp's debt-to-capital ratio suggests a positive development in its capital structure management, potentially enhancing its financial stability and resilience in the long term.