Common-Size Income Statement
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Danaher Corp., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends between 2021 and 2025. While sales remained consistently at 100% throughout the period, significant shifts occurred in profitability and expense management. A general trend of declining profitability is observed, particularly in the later years of the analyzed period.
- Gross Profit
- Gross profit as a percentage of sales experienced a decline from 60.95% in 2021 to 58.74% in 2023, followed by a slight recovery to 59.11% in 2025. This suggests increasing costs of goods sold relative to sales, impacting overall gross margin. The cost of sales increased from -39.05% to -40.89% over the period.
- Operating Expenses
- Operating costs, encompassing selling, general, administrative, and research & development expenses, demonstrated a consistent increase as a percentage of sales. From 32.60% in 2022, operating costs rose to 40.02% in 2025. This increase was most pronounced in selling, general and administrative expenses, which grew from -27.06% to -33.52% over the same period. Research and development expenses also increased, though at a slower pace, from -5.54% to -6.50%.
- Operating Profit
- Consequently, operating profit decreased substantially from 25.35% of sales in 2021 to 19.09% in 2025. This decline reflects the combined effect of the shrinking gross margin and expanding operating expenses. The largest drop occurred between 2023 and 2025.
- Nonoperating Items
- Nonoperating income (expense) fluctuated significantly, moving from a positive 0.45% in 2021 to a negative -1.86% in 2025. Interest income contributed to this volatility, peaking at 1.27% in 2023 before decreasing to 0.12% in 2025. Interest expense remained relatively stable, ranging from -0.67% to -1.20%.
- Net Earnings
- Net earnings followed a similar downward trajectory as operating profit, decreasing from 21.84% of sales in 2021 to 14.71% in 2025. Net earnings attributable to common stockholders mirrored this trend, declining from 21.28% to 14.71%. The impact of discontinued operations was minimal, with a positive contribution in 2023 and 2025, but negligible in other years.
- Income Taxes
- The effective tax rate, as indicated by income taxes as a percentage of sales, decreased from -4.25% in 2021 to -2.58% in 2025. This decrease partially offset the decline in earnings before taxes, but did not fully compensate for it.
- Mandatory Convertible Preferred Stock Dividends
- Mandatory convertible preferred stock dividends decreased from -0.56% in 2021 to -0.09% in 2023, and were absent in 2024 and 2025. This suggests a reduction or elimination of this dividend obligation over time.
In summary, the analysis indicates a trend of increasing expenses and decreasing profitability. While sales remained constant, the company experienced pressure on both gross margins and operating efficiency, ultimately leading to a decline in net earnings as a percentage of sales.