Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Danaher Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 84,488 84,350 83,184 76,161 62,082
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 84,488 84,350 83,184 76,161 62,082
Adjustment to Total Debt
Total debt (as reported) 18,402 19,677 22,176 21,204 21,729
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities 180 199 207 189 158
Add: Long-term operating lease liabilities 954 863 889 785 639
Total debt (adjusted) 19,536 20,739 23,272 22,178 22,526

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.


Danaher Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Danaher Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.28 0.37 0.35 0.29 0.29
Adjusted total asset turnover 0.28 0.37 0.35 0.29 0.29
Debt to Equity2
Reported debt to equity 0.34 0.39 0.49 0.53 0.72
Adjusted debt to equity 0.37 0.41 0.52 0.56 0.74
Return on Assets3 (ROA)
Reported ROA 5.64% 8.55% 7.73% 4.79% 4.85%
Adjusted ROA 5.64% 8.55% 7.73% 4.79% 4.85%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Danaher Corp. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Danaher Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales 23,890 31,471 29,453 22,284 17,911
Total assets 84,488 84,350 83,184 76,161 62,082
Activity Ratio
Total asset turnover1 0.28 0.37 0.35 0.29 0.29
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Sales 23,890 31,471 29,453 22,284 17,911
Adjusted total assets 84,488 84,350 83,184 76,161 62,082
Activity Ratio
Adjusted total asset turnover2 0.28 0.37 0.35 0.29 0.29

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales ÷ Total assets
= 23,890 ÷ 84,488 = 0.28

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 23,890 ÷ 84,488 = 0.28

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 18,402 19,677 22,176 21,204 21,729
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Debt to equity1 0.34 0.39 0.49 0.53 0.72
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 19,536 20,739 23,272 22,178 22,526
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Adjusted debt to equity2 0.37 0.41 0.52 0.56 0.74

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 18,402 ÷ 53,486 = 0.34

2 Adjusted debt to equity = Adjusted total debt ÷ Total Danaher stockholders’ equity
= 19,536 ÷ 53,486 = 0.37

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Danaher Corp. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Total assets 84,488 84,350 83,184 76,161 62,082
Profitability Ratio
ROA1 5.64% 8.55% 7.73% 4.79% 4.85%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Adjusted total assets 84,488 84,350 83,184 76,161 62,082
Profitability Ratio
Adjusted ROA2 5.64% 8.55% 7.73% 4.79% 4.85%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,764 ÷ 84,488 = 5.64%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,764 ÷ 84,488 = 5.64%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.