Fortive (NYSE:FTV) ROE %

: 8.07% (As of Sep. 2022)

View and export this data going back to 2016. Start your Free Trial

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 %

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 %																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.

Annual Data Quarterly Data

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 %

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.

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

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Fortive Corp (NYSE:FTV) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

FTVpA.PFD:USA FTV:Mexico F03:Germany F1TV34:Brazil

Address

6920 Seaway Boulevard, Everett, WA, USA, 98203

Website

https://www.fortive.com

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