Fortive Corp (FTV)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	16,911,800	15,664,400	15,730,700	15,804,800	15,890,600	15,893,100	16,070,900	16,266,400	16,465,500	14,976,100	14,495,500	14,278,900	16,051,500	17,199,700	16,705,700	16,931,700	17,439,000	16,660,400	16,468,100	15,656,200
Total stockholders’ equity	US$ in thousands	10,318,900	10,077,800	9,965,800	9,869,900	9,683,400	9,390,800	9,444,300	9,561,400	9,512,200	9,318,000	9,205,000	9,009,000	8,964,200	7,676,100	7,395,300	7,242,100	7,387,000	7,151,700	7,011,600	6,850,700
Financial leverage ratio		1.64	1.55	1.58	1.60	1.64	1.69	1.70	1.70	1.73	1.61	1.57	1.58	1.79	2.24	2.26	2.34	2.36	2.33	2.35	2.29

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,911,800K ÷ $10,318,900K
= 1.64

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher ratio indicates higher financial leverage, meaning the company has a higher proportion of debt in its capital structure compared to equity.

Based on the data provided, Fortive Corp's financial leverage ratio has fluctuated over the past eight quarters. The ratio ranged from a low of 1.55 in Q3 2023 to a high of 1.70 in Q3 and Q2 2022. Generally, a ratio above 1 suggests that the company is more reliant on debt financing.

The decreasing trend from Q4 2022 to Q3 2023 may indicate that Fortive Corp is decreasing its reliance on debt to fund its operations and investments. This trend could be positive as it may reduce the company's financial risk and vulnerability to economic downturns.

Overall, continued monitoring of Fortive Corp's financial leverage ratio is recommended to assess the company's capital structure and financial risk profile.