Fortive (NYSE:FTV) Gross Margin %

: 58.34% (As of Dec. 2022)

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Gross Margin % is calculated as gross profit divided by its revenue. Fortive's Gross Profit for the three months ended in Dec. 2022 was $893 Mil. Fortive's Revenue for the three months ended in Dec. 2022 was $1,530 Mil. Therefore, Fortive's Gross Margin % for the quarter that ended in Dec. 2022 was 58.34%.

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: 48.04 Med: 52.58 Max: 57.73
Current: 57.73

During the past 11 years, the highest Gross Margin % of Fortive was 57.73%. The lowest was 48.04%. And the median was 52.58%.

FTV's Gross Margin % is ranked better than
92.62% of 2372 companies
in the Hardware industry
Industry Median: 24.25 vs FTV: 57.73

Fortive had a gross margin of 58.34% for the quarter that ended in Dec. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fortive was 1.90% 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

57.53

54.41

56.29

57.23

57.73

Fortive Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Gross Margin %																57.75	57.54	56.96	58.06	58.34

Competitive Comparison

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.

Annual Data Quarterly Data

Fortive Gross Margin % Distribution

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 in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.

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. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	3363.4	/	5825.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5825.7 - 2462.3)	/	5825.7
	=	57.73 %

Fortive's Gross Margin for the quarter that ended in Dec. 2022 is calculated as

Gross Margin % (Q: Dec. 2022 )	=	Gross Profit (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	892.5	/	1529.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1529.9 - 637.4)	/	1529.9
	=	58.34 %

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 58.34% for the quarter that ended in Dec. 2022 => 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 (NYSE:FTV) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

FTVpA.PFD:USA FTV:Mexico F03:Germany

Address

6920 Seaway Boulevard, Everett, WA, USA, 98203

Website

https://www.fortive.com

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 $5.3 billion in revenue and $1.2 billion in adjusted operating income in 2021.

Executives

Eric Branderiz	director	915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
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
Olumide Soroye	officer: President & CEO of IOS	6920 SEAWAY BLVD., EVERETT WA 98203
Edward Read Simmons	officer: SVP - Strategy	6920 SEAWAY BLVD, EVERETT WA 98203
Rejji P Hayes	director	ONE ENERGY PLAZA, JACKSON MI 49201
Sharmistha Dubey	director	8750 NORTH CENTRAL EXPRESSWAY SUITE 1400, DALLAS TX 75231
Christopher M. Mulhall	officer: VP - Chief Accounting Officer	C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Jeannine P Sargent	director	C/O VEECO INSTRUMENTS INC., 100 SUNNYSIDE BOULEVARD SUITE B, WOODBURY NY 11797
Barbara B. Hulit	officer: Senior Vice President	C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Emily A. Weaver	officer: VP-Chief Accounting Officer	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
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
Jonathan L Schwarz	officer: VP-Corporate Development	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
William W Pringle	officer: Senior Vice President	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203