Fortive Corp (FTV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,016,100 | 16,911,800 | 15,890,600 | 16,465,500 | 16,051,500 |
| Total stockholders’ equity | US$ in thousands | 10,188,600 | 10,318,900 | 9,683,400 | 9,512,200 | 8,964,200 |
| Financial leverage ratio | 1.67 | 1.64 | 1.64 | 1.73 | 1.79 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,016,100K ÷ $10,188,600K
= 1.67
The financial leverage ratio of Fortive Corp has shown a downward trend from 1.79 in December 31, 2020, to 1.67 in December 31, 2024. This indicates that the company's reliance on debt to finance its operations has decreased over the years. A decreasing financial leverage ratio usually suggests a lower financial risk for the company, as it indicates a smaller proportion of debt in relation to equity in its capital structure. However, it's important to consider the reasons behind this trend and assess whether it aligns with the company's overall financial strategy and objectives.
Peer comparison
Dec 31, 2024