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FTV (Fortive) Degree of Operating Leverage : -7.76 (As of Mar. 2025)


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What is Fortive Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fortive's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -7.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Fortive's Degree of Operating Leverage or its related term are showing as below:

FTV's Degree of Operating Leverage is ranked better than
86.16% of 2414 companies
in the Hardware industry
Industry Median: 1 vs FTV: -7.76

Fortive Degree of Operating Leverage Historical Data

The historical data trend for Fortive's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

Fortive Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 158.54 -3.94 2.25 3.57 0.26

Fortive Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial 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 4.16 2.61 0.69 0.26 -7.76

Competitive Comparison of Fortive's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Fortive's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Fortive's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Fortive's Degree of Operating Leverage falls into.


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Fortive Degree of Operating Leverage Calculation

Fortive's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1077.8 (Mar. 2025) / 1154.4 (Mar. 2024) - 1 )/( 6181.5 (Mar. 2025) / 6129.1 (Mar. 2024) - 1 )
=-0.0664/0.0085
=-7.76***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Fortive  (NYSE:FTV) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Fortive Degree of Operating Leverage Related Terms

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


Fortive Business Description

Industry
Traded in Other Exchanges
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive 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 $6.2 billion in revenue in 2024.
Executives
James A Lico officer: President, CEO and Secretary
Peter C Underwood officer: SVP-General Counsel/Secretary 200 STATE STREET, BELOIT WI 53511
Charles E Mclaughlin officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Stacey A. Walker officer: SVP - Human Resources C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Christopher M. Mulhall officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Jonathan L Schwarz officer: VP-Corporate Development C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Tamara S. Newcombe officer: President & CEO of PT 6920 SEAWAY BLVD., EVERETT WA 98203
Patrick K Murphy officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Eric Branderiz director 915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Alan G Spoon director, other: Chairman 1150 15TH ST NW, WASHINGTON DC 20071
Wright Iii Lassiter director 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Barbara B. Hulit officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Olumide Soroye officer: President & CEO of IOS 6920 SEAWAY BLVD., EVERETT WA 98203
Steven M Rales director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
William W Pringle officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203