Fortive Corp (FTV)

Debt-to-equity 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-equity ratio		0.35	0.23	0.19	0.32	0.65

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,646,200K ÷ $10,318,900K
= 0.35

Fortive Corp's debt-to-equity ratio has shown a decreasing trend from 0.86 in 2019 to 0.35 in 2023. This indicates that the company has been relying less on debt financing relative to equity over the years. A lower debt-to-equity ratio suggests a lower financial risk for the company, as there is less reliance on borrowed funds to finance operations.

The decreasing trend in the debt-to-equity ratio may signify that Fortive Corp has gradually been optimizing its capital structure by reducing its debt levels and/or increasing its equity. This can potentially enhance the company's financial stability and flexibility, as it may have improved its ability to cover debt obligations and manage financial risks more effectively.

Overall, the trend in Fortive Corp's debt-to-equity ratio reflects a positive move towards a more balanced and sustainable capital structure, which could bode well for its financial health and long-term growth prospects.