Fortive Corp (FTV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,911,800 | 15,890,600 | 16,465,500 | 16,051,500 | 17,439,000 |
| Total stockholders’ equity | US$ in thousands | 10,318,900 | 9,683,400 | 9,512,200 | 8,964,200 | 7,387,000 |
| Financial leverage ratio | 1.64 | 1.64 | 1.73 | 1.79 | 2.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,911,800K ÷ $10,318,900K
= 1.64
The financial leverage ratio of Fortive Corp has been relatively stable over the past five years, ranging from 1.64 to 2.36. A financial leverage ratio above 1 indicates that the company relies on debt financing in addition to equity to fund its operations and growth.
The decreasing trend in the financial leverage ratio from 2.36 in 2019 to 1.64 in 2023 suggests that Fortive Corp has been gradually reducing its reliance on debt to finance its activities. This could be a positive sign as lower financial leverage ratios indicate lower financial risk and potentially greater financial stability for the company.
Overall, the decreasing trend in Fortive Corp's financial leverage ratio indicates a more conservative approach to capital structure management, which could lead to improved financial health and stability in the long term.
Peer comparison
Dec 31, 2023