Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Danaher Corp. (NYSE:DHR)

Analysis of Inventory

Advanced level

Inventory Disclosure

Danaher Corp., balance sheet: inventory

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Finished goods 833,500  1,031,200  982,500  884,400  1,038,500 
Work in process 284,900  313,900  309,700  299,400  319,800 
Raw materials 509,900  565,000  548,600  525,600  737,100 
Inventories 1,628,300  1,910,100  1,840,800  1,709,400  2,095,400 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Item Description The company
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Danaher Corp.’s inventories increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Inventories
Inventories at LIFO (as reported) 1,628,300  1,910,100  1,840,800  1,709,400  2,095,400 
Add: Inventory LIFO reserve —  —  —  —  — 
Inventories at FIFO (adjusted) 1,628,300  1,910,100  1,840,800  1,709,400  2,095,400 
Adjustment to Current Assets
Current assets (as reported) 25,596,600  7,093,800  6,850,000  6,665,100  7,836,700 
Add: Inventory LIFO reserve —  —  —  —  — 
Current assets (adjusted) 25,596,600  7,093,800  6,850,000  6,665,100  7,836,700 
Adjustment to Total Assets
Total assets (as reported) 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Add: Inventory LIFO reserve —  —  —  —  — 
Total assets (adjusted) 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Adjustment to Total Danaher Stockholders’ Equity
Total Danaher stockholders’ equity (as reported) 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Add: Inventory LIFO reserve —  —  —  —  — 
Total Danaher stockholders’ equity (adjusted) 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Adjustment to Net Earnings
Net earnings (as reported) 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Add: Increase (decrease) in inventory LIFO reserve —  —  —  —  — 
Net earnings (adjusted) 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Danaher Corp.’s inventory value on Dec 31, 2019 would be $1,628,300  (in thousands) if the FIFO inventory method was used instead of LIFO. Danaher Corp.’s inventories, valued on a LIFO basis, on Dec 31, 2019 were $1,628,300 . Danaher Corp.’s inventories would have been $—  higher than reported on Dec 31, 2019 if the FIFO method had been used instead.


Danaher Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Danaher Corp., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current Ratio
Reported current ratio (LIFO) 5.19 1.47 1.43 0.97 1.27
Adjusted current ratio (FIFO) 5.19 1.47 1.43 0.97 1.27
Net Profit Margin
Reported net profit margin (LIFO) 16.80% 13.33% 13.60% 15.13% 16.33%
Adjusted net profit margin (FIFO) 16.80% 13.33% 13.60% 15.13% 16.33%
Total Asset Turnover
Reported total asset turnover (LIFO) 0.29 0.42 0.39 0.37 0.43
Adjusted total asset turnover (FIFO) 0.29 0.42 0.39 0.37 0.43
Financial Leverage
Reported financial leverage (LIFO) 2.05 1.70 1.77 1.97 2.04
Adjusted financial leverage (FIFO) 2.05 1.70 1.77 1.97 2.04
Return on Equity (ROE)
Reported ROE (LIFO) 9.94% 9.40% 9.45% 11.10% 14.17%
Adjusted ROE (FIFO) 9.94% 9.40% 9.45% 11.10% 14.17%
Return on Assets (ROA)
Reported ROA (LIFO) 4.85% 5.54% 5.34% 5.64% 6.96%
Adjusted ROA (FIFO) 4.85% 5.54% 5.34% 5.64% 6.96%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Danaher Corp.’s adjusted current ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Danaher Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Danaher Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Danaher Corp.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Danaher Corp.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Danaher Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Current assets 25,596,600  7,093,800  6,850,000  6,665,100  7,836,700 
Current liabilities 4,932,100  4,841,500  4,792,300  6,874,000  6,170,400 
Liquidity Ratio
Current ratio1 5.19 1.47 1.43 0.97 1.27
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets 25,596,600  7,093,800  6,850,000  6,665,100  7,836,700 
Current liabilities 4,932,100  4,841,500  4,792,300  6,874,000  6,170,400 
Liquidity Ratio
Adjusted current ratio2 5.19 1.47 1.43 0.97 1.27

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 25,596,600 ÷ 4,932,100 = 5.19

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 25,596,600 ÷ 4,932,100 = 5.19

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Danaher Corp.’s adjusted current ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Sales 17,911,100  19,893,000  18,329,700  16,882,400  20,563,100 
Profitability Ratio
Net profit margin1 16.80% 13.33% 13.60% 15.13% 16.33%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Sales 17,911,100  19,893,000  18,329,700  16,882,400  20,563,100 
Profitability Ratio
Adjusted net profit margin2 16.80% 13.33% 13.60% 15.13% 16.33%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 3,008,200 ÷ 17,911,100 = 16.80%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 3,008,200 ÷ 17,911,100 = 16.80%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Danaher Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Sales 17,911,100  19,893,000  18,329,700  16,882,400  20,563,100 
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Activity Ratio
Total asset turnover1 0.29 0.42 0.39 0.37 0.43
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Sales 17,911,100  19,893,000  18,329,700  16,882,400  20,563,100 
Adjusted total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Activity Ratio
Adjusted total asset turnover2 0.29 0.42 0.39 0.37 0.43

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Total asset turnover = Sales ÷ Total assets
= 17,911,100 ÷ 62,081,600 = 0.29

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 17,911,100 ÷ 62,081,600 = 0.29

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Solvency Ratio
Financial leverage1 2.05 1.70 1.77 1.97 2.04
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Adjusted total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Solvency Ratio
Adjusted financial leverage2 2.05 1.70 1.77 1.97 2.04

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 62,081,600 ÷ 30,270,600 = 2.05

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Danaher stockholders’ equity
= 62,081,600 ÷ 30,270,600 = 2.05

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Danaher Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Profitability Ratio
ROE1 9.94% 9.40% 9.45% 11.10% 14.17%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Adjusted total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Profitability Ratio
Adjusted ROE2 9.94% 9.40% 9.45% 11.10% 14.17%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROE = 100 × Net earnings ÷ Total Danaher stockholders’ equity
= 100 × 3,008,200 ÷ 30,270,600 = 9.94%

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total Danaher stockholders’ equity
= 100 × 3,008,200 ÷ 30,270,600 = 9.94%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Danaher Corp.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Profitability Ratio
ROA1 4.85% 5.54% 5.34% 5.64% 6.96%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Adjusted total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Profitability Ratio
Adjusted ROA2 4.85% 5.54% 5.34% 5.64% 6.96%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,008,200 ÷ 62,081,600 = 4.85%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 3,008,200 ÷ 62,081,600 = 4.85%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Danaher Corp.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.