Fortive Corp (FTV)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,182,400	1,186,200	1,181,800	1,171,300	1,133,700	1,113,700	1,074,500	1,015,500	987,400	898,100	848,500	827,500	812,800	795,100	730,300	621,600	539,400	495,400	454,300	447,300
Interest expense (ttm)	US$ in thousands	152,800	148,200	141,000	135,400	123,500	127,100	123,700	111,600	98,300	91,400	90,100	94,300	103,200	114,800	126,600	137,600	148,500	137,600	147,700	155,900
Interest coverage		7.74	8.00	8.38	8.65	9.18	8.76	8.69	9.10	10.04	9.83	9.42	8.78	7.88	6.93	5.77	4.52	3.63	3.60	3.08	2.87

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,182,400K ÷ $152,800K
= 7.74

The interest coverage ratio of Fortive Corp has shown a generally positive trend over the reported periods, indicating the company's ability to comfortably cover its interest expenses with its earnings. The ratio has consistently increased from 2.87 as of March 31, 2020, to 7.74 as of December 31, 2024.

This improvement suggests that Fortive Corp has been generating sufficient operating income to service its interest obligations with increasing ease over the years. A higher interest coverage ratio is generally viewed positively by investors and creditors as it signifies a lower risk of insolvency due to an inability to meet debt payment obligations.

The upward trend in the interest coverage ratio reflects the company's strong financial position and operational performance, indicating a reduced reliance on external financing to cover interest expenses. However, it is important for investors to continue monitoring this ratio to ensure that Fortive Corp maintains its ability to meet its interest payments as its financial conditions evolve.