Stock Analysis on Net
Stock Analysis on Net
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Danaher Corp. (NYSE:DHR)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Danaher Corp., adjustment to net earnings

US$ in thousands

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (as reported) 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Add: Unrealized gain (loss) on available-for-sale securities 1,200  (800) (19,600) (114,800) 17,600 
Net earnings (adjusted) 3,009,400  2,650,100  2,472,500  2,438,900  3,375,000 

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Danaher Corp., adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 16.80% 13.33% 13.60% 15.13% 16.33%
Adjusted net profit margin 16.80% 13.32% 13.49% 14.45% 16.41%
Return on Equity (ROE)
Reported ROE 9.94% 9.40% 9.45% 11.10% 14.17%
Adjusted ROE 9.94% 9.39% 9.38% 10.60% 14.25%
Return on Assets (ROA)
Reported ROA 4.85% 5.54% 5.34% 5.64% 6.96%
Adjusted ROA 4.85% 5.54% 5.30% 5.38% 7.00%

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).

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 ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Danaher Corp.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Danaher Corp.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Danaher Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,009,400  2,650,100  2,472,500  2,438,900  3,375,000 
Sales 17,911,100  19,893,000  18,329,700  16,882,400  20,563,100 
Profitability Ratio
Adjusted net profit margin2 16.80% 13.32% 13.49% 14.45% 16.41%

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 × 3,009,400 ÷ 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 Return on Equity (ROE)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,009,400  2,650,100  2,472,500  2,438,900  3,375,000 
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% 9.39% 9.38% 10.60% 14.25%

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 ÷ Total Danaher stockholders’ equity
= 100 × 3,009,400 ÷ 30,270,600 = 9.94%

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

Adjusted Return on Assets (ROA)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings 3,009,400  2,650,100  2,472,500  2,438,900  3,375,000 
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% 5.30% 5.38% 7.00%

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 ÷ Total assets
= 100 × 3,009,400 ÷ 62,081,600 = 4.85%

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