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Fortive (Fortive) Gross Margin % : 59.31% (As of Mar. 2024)


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What is Fortive Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fortive's Gross Profit for the three months ended in Mar. 2024 was $904 Mil. Fortive's Revenue for the three months ended in Mar. 2024 was $1,525 Mil. Therefore, Fortive's Gross Margin % for the quarter that ended in Mar. 2024 was 59.31%.


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

FTV' s Gross Margin % Range Over the Past 10 Years
Min: 48.12   Med: 55.35   Max: 59.55
Current: 59.55


During the past 12 years, the highest Gross Margin % of Fortive was 59.55%. The lowest was 48.12%. And the median was 55.35%.

FTV's Gross Margin % is ranked better than
93.93% of 2439 companies
in the Hardware industry
Industry Median: 24.46 vs FTV: 59.55

Fortive had a gross margin of 59.31% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fortive was 1.00% per year.


Fortive Gross Margin % Historical Data

The historical data trend for Fortive's Gross Margin % 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 Gross Margin % Chart

Fortive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 54.41 56.29 57.23 57.73 59.26

Fortive Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % 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 58.07 59.32 59.75 59.83 59.31

Competitive Comparison of Fortive's Gross Margin %

For the Scientific & Technical Instruments subindustry, Fortive's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Hardware Industry

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

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



Fortive Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Fortive's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3594.1 / 6065.3
=(Revenue - Cost of Goods Sold) / Revenue
=(6065.3 - 2471.2) / 6065.3
=59.26 %

Fortive's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=904.2 / 1524.5
=(Revenue - Cost of Goods Sold) / Revenue
=(1524.5 - 620.3) / 1524.5
=59.31 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Fortive  (NYSE:FTV) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Fortive had a gross margin of 59.31% for the quarter that ended in Mar. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Fortive Gross Margin % Related Terms

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


Fortive (Fortive) Business Description

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 $5.8 billion in revenue and $1.4 billion in adjusted operating income in 2022.
Executives
Charles E Mclaughlin officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Patrick K Murphy officer: Senior Vice President 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
Stacey A. Walker officer: SVP - Human Resources 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
Tamara S. Newcombe officer: President & CEO of PT 6920 SEAWAY BLVD., EVERETT WA 98203
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
Jonathan L Schwarz officer: VP-Corporate Development C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
James A Lico officer: President, CEO and Secretary
Peter C Underwood officer: SVP-General Counsel/Secretary 200 STATE STREET, BELOIT WI 53511
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