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Fortive ROA %

: 4.28% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Fortive's annualized Net Income for the quarter that ended in Jun. 2022 was $692 Mil. Fortive's average Total Assets over the quarter that ended in Jun. 2022 was $16,169 Mil. Therefore, Fortive's annualized ROA % for the quarter that ended in Jun. 2022 was 4.28%.

The historical rank and industry rank for Fortive's ROA % or its related term are showing as below:

FTV' s ROA % Range Over the Past 10 Years
Min: 3.74   Med: 11.33   Max: 24.9
Current: 4.19

During the past 10 years, Fortive's highest ROA % was 24.90%. The lowest was 3.74%. And the median was 11.33%.

FTV's ROA % is ranked better than
52.7% of 2391 companies
in the Hardware industry
Industry Median: 3.84 vs FTV: 4.19

Fortive ROA % Historical Data

The historical data trend for Fortive's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fortive Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.18 24.90 4.87 9.63 3.74

Fortive Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.03 4.09 4.24 4.04 4.28

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Fortive's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Fortive ROA % Distribution

For the Hardware industry and Technology sector, Fortive's ROA % distribution charts can be found below:

* The bar in red indicates where Fortive's ROA % falls into.



Fortive ROA % Calculation

Fortive's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=608.4/( (16051.5+16465.5)/ 2 )
=608.4/16258.5
=3.74 %

Fortive's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=692/( (16266.4+16070.9)/ 2 )
=692/16168.65
=4.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Fortive  (NYSE:FTV) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=692/16168.65
=(Net Income / Revenue)*(Revenue / Total Assets)
=(692 / 5853.2)*(5853.2 / 16168.65)
=Net Margin %*Asset Turnover
=11.82 %*0.362
=4.28 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Fortive ROA % Related Terms

Thank you for viewing the detailed overview of Fortive's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fortive Business Description

Fortive logo
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive Corp is a diversified industrial technology firm with a broad portfolio of mission-critical products and services that include field solutions, product realization, health, and sensing technologies. The company serves a wide range of end markets, including manufacturing, utilities, medical, and electronics. Fortive generated roughly $5.3 billion in revenue and $1.2 billion in adjusted operating income in 2021.
Executives
Newcombe Tamara S. officer: President & CEO of PT 6920 SEAWAY BLVD. EVERETT WA 98203
Lassiter Wright Iii director 500 PLAZA DRIVE C/O QUEST DIAGNOSTICS SECAUCUS NJ 07094
Soroye Olumide officer: President & CEO of IOS 6920 SEAWAY BLVD. EVERETT WA 98203
Simmons Edward Read officer: SVP - Strategy 6920 SEAWAY BLVD EVERETT WA 98203
Hayes Rejji P director ONE ENERGY PLAZA JACKSON MI 49201
Dubey Sharmistha director 8750 NORTH CENTRAL EXPRESSWAY SUITE 1400 DALLAS TX 75231
Mulhall Christopher M. officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Sargent Jeannine P director C/O VEECO INSTRUMENTS INC. 100 SUNNYSIDE BOULEVARD SUITE B WOODBURY NY 11797
Hulit Barbara B. officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Weaver Emily A. officer: VP-Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Mclaughlin Charles E officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Murphy Patrick K officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Schwarz Jonathan L officer: VP-Corporate Development C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Pringle William W officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Walker Stacey A. officer: SVP - Human Resources C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203

Fortive Headlines

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