Fortive Corp (FTV)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	17,016,100	17,453,600	17,285,000	17,520,100	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
Total stockholders’ equity	US$ in thousands	10,188,600	10,554,900	10,499,300	10,476,700	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
Financial leverage ratio		1.67	1.65	1.65	1.67	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

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 been fluctuating over the analyzed period. Starting at 2.34 on March 31, 2020, the ratio decreased gradually to 1.58 on March 31, 2021. This indicates a reduction in the company's reliance on debt to finance its operations and growth. Subsequently, the ratio hovered around the 1.5 to 1.7 range over the next few quarters, reflecting a stable capital structure.

A lower financial leverage ratio suggests that Fortive Corp has been using less debt relative to equity in its capital structure. This can be viewed positively by investors and creditors as it indicates lower financial risk. However, it's important to note that while a lower ratio signifies a stronger financial position, it may also indicate limited potential for leveraging debt to increase returns.

Overall, the trend of Fortive Corp's financial leverage ratio shows a conservative approach to debt financing, maintaining a balanced mix of debt and equity in its capital structure to support sustainable growth and financial stability.