Fortive Corp (FTV)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 3,331,100 3,646,200 2,251,600 1,807,300 2,830,300
Total stockholders’ equity US$ in thousands 10,188,600 10,318,900 9,683,400 9,512,200 8,964,200
Debt-to-capital ratio 0.25 0.26 0.19 0.16 0.24

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,331,100K ÷ ($3,331,100K + $10,188,600K)
= 0.25

The debt-to-capital ratio of Fortive Corp has shown some fluctuations over the past five years. Starting at 0.24 on December 31, 2020, it decreased to 0.16 by the end of 2021, indicating a reduction in the proportion of debt relative to the company's total capital. However, by the end of 2022, the ratio had slightly increased to 0.19 before jumping to 0.26 by the end of 2023. This significant increase suggests a higher reliance on debt to finance its operations or investments during that period. By the end of 2024, the ratio slightly decreased to 0.25, reflecting a slight improvement in the proportion of debt in relation to the company's capital structure compared to the previous year. Monitoring this ratio is crucial for assessing Fortive Corp's financial leverage and risk exposure, as well as its ability to meet its debt obligations in the future.