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Fortive (NYSE:FTV) ROE %

: 8.07% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fortive's annualized net income for the quarter that ended in Sep. 2022 was $760 Mil. Fortive's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $9,418 Mil. Therefore, Fortive's annualized ROE % for the quarter that ended in Sep. 2022 was 8.07%.

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

FTV' s ROE % Range Over the Past 10 Years
Min: 6.59   Med: 17.07   Max: 56.11
Current: 7.34

During the past 10 years, Fortive's highest ROE % was 56.11%. The lowest was 6.59%. And the median was 17.07%.

FTV's ROE % is ranked better than
50.53% of 2351 companies
in the Hardware industry
Industry Median: 7.20 vs FTV: 7.34

Fortive ROE % Historical Data

The historical data trend for Fortive's ROE % 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
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.25 56.11 10.57 19.73 6.59

Fortive Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
ROE % 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 6.58 7.01 6.92 7.28 8.07

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Fortive's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

* The bar in red indicates where Fortive's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Fortive ROE % Calculation

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

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=608.4/( (8964.2+9512.2)/ 2 )
=608.4/9238.2
=6.59 %

Fortive's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=759.6/( (9444.3+9390.8)/ 2 )
=759.6/9417.55
=8.07 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


Fortive  (NYSE:FTV) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=759.6/9417.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(759.6 / 5824)*(5824 / 15982)*(15982 / 9417.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.04 %*0.3644*1.697
=ROA %*Equity Multiplier
=4.75 %*1.697
=8.07 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=759.6/9417.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (759.6 / 870) * (870 / 1012) * (1012 / 5824) * (5824 / 15982) * (15982 / 9417.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8731 * 0.8597 * 17.38 % * 0.3644 * 1.697
=8.07 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Fortive ROE % Related Terms

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


Fortive (NYSE:FTV) 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 (NYSE:FTV) Headlines

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