Stock Analysis on Net
Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Common-Size Income Statement 
Quarterly Data

Danaher Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 27, 2025 Mar 28, 2025 Dec 31, 2024 Sep 27, 2024 Jun 28, 2024 Mar 29, 2024 Dec 31, 2023 Sep 29, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jul 1, 2022 Apr 1, 2022 Dec 31, 2021 Oct 1, 2021 Jul 2, 2021 Apr 2, 2021 Dec 31, 2020 Oct 2, 2020 Jul 3, 2020 Apr 3, 2020
Sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -40.65 -38.84 -40.50 -41.34 -40.31 -39.84 -41.00 -41.77 -43.88 -38.44 -40.98 -40.18 -39.09 -38.80 -39.33 -39.70 -39.08 -37.98 -41.51 -45.17 -46.15 -43.75
Gross profit 59.35% 61.16% 59.50% 58.66% 59.69% 60.16% 59.00% 58.23% 56.12% 61.56% 59.02% 59.82% 60.91% 61.20% 60.67% 60.30% 60.92% 62.02% 58.49% 54.83% 53.85% 56.25%
Selling, general and administrative expenses -39.76 -32.36 -30.94 -35.53 -32.54 -31.18 -31.77 -30.73 -30.35 -29.79 -26.17 -28.04 -26.90 -27.21 -28.15 -28.52 -27.24 -27.35 -28.95 -30.52 -31.82 -33.58
Research and development expenses -6.79 -6.60 -6.76 -6.61 -6.81 -6.35 -6.35 -6.44 -6.11 -6.27 -5.41 -5.48 -5.56 -5.74 -6.08 -6.10 -5.90 -5.54 -5.85 -5.82 -6.09 -6.61
Other operating expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7.57 0.00 0.00 0.00 0.00 0.00 0.00
Operating costs -46.55% -38.97% -37.70% -42.14% -39.35% -37.53% -38.13% -37.16% -36.45% -36.06% -31.58% -33.52% -32.46% -32.95% -34.23% -42.19% -33.14% -32.90% -34.80% -36.34% -37.91% -40.19%
Operating profit 12.80% 22.19% 21.80% 16.52% 20.34% 22.64% 20.87% 21.07% 19.67% 25.50% 27.43% 26.30% 28.45% 28.25% 26.44% 18.11% 27.78% 29.12% 23.69% 18.49% 15.94% 16.06%
Other income (expense), net -0.71 -1.38 -0.96 1.76 -1.03 -0.62 -2.14 -0.84 -0.25 0.40 -0.81 -0.67 -1.12 -0.26 1.01 1.90 1.34 2.04 0.52 0.11 8.57 -0.03
Loss on early extinguishment of borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.18 0.00 0.00 0.00 -0.38 0.00 0.00 0.00
Interest expense -1.20 -1.25 -0.93 -1.50 -1.13 -1.12 -1.33 -1.24 -1.10 -1.11 -0.76 -0.55 -0.66 -0.70 -0.69 -0.86 -0.86 -0.85 -1.07 -1.30 -1.48 -1.09
Interest income 0.13 0.10 0.21 0.07 0.68 1.04 1.83 1.40 1.00 0.81 0.35 0.12 0.03 0.01 0.01 0.04 0.04 0.06 0.05 0.07 0.02 1.44
Nonoperating income (expense) -1.77% -2.53% -1.68% 0.33% -1.48% -0.71% -1.64% -0.68% -0.36% 0.10% -1.23% -1.10% -1.75% -0.95% -0.85% 1.08% 0.53% 1.25% -0.88% -1.12% 7.10% 0.31%
Earnings before income taxes 11.03% 19.67% 20.11% 16.85% 18.86% 21.93% 19.23% 20.39% 19.32% 25.60% 26.20% 25.20% 26.69% 27.30% 25.59% 19.19% 28.30% 30.37% 22.80% 17.36% 23.05% 16.37%
Income taxes -1.68 -3.05 -3.50 -2.74 -3.06 -3.16 -1.73 -3.68 -3.76 -4.76 0.47 -4.68 -5.02 -4.86 -3.65 -3.17 -4.77 -5.56 -4.46 -2.35 -5.54 -2.67
Net earnings from continuing operations 9.35% 16.62% 16.61% 14.11% 15.79% 18.77% 17.50% 16.71% 15.56% 20.84% 26.67% 20.51% 21.67% 22.44% 21.94% 16.02% 23.54% 24.82% 18.34% 15.02% 17.50% 13.70%
Earnings from discontinued operations, net of income taxes 0.00 0.00 0.00 0.00 0.00 0.00 -0.66 3.36 3.15 3.53 0.00 0.00 0.00 0.00 0.00 0.00 1.19 0.00 0.00 0.00 0.00 0.00
Net earnings 9.35% 16.62% 16.61% 14.11% 15.79% 18.77% 16.85% 20.07% 18.71% 24.37% 26.67% 20.51% 21.67% 22.44% 21.94% 16.02% 24.73% 24.82% 18.34% 15.02% 17.50% 13.70%
Mandatory convertible preferred stock dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.35 -0.26 -0.27 -0.28 -0.53 -0.50 -0.57 -0.57 -0.60 -0.60 -0.70 -0.65 -0.45
Net earnings attributable to common stockholders 9.35% 16.62% 16.61% 14.11% 15.79% 18.77% 16.85% 20.07% 18.71% 24.02% 26.41% 20.24% 21.39% 21.90% 21.44% 15.45% 24.16% 24.22% 17.74% 14.32% 16.85% 13.25%

Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).

Gross Profit and Cost of Sales Trends
Over the observed periods, the gross profit margin as a percentage of sales demonstrated a generally favorable trend, increasing from 56.25% in April 2020 to sustain levels around 59-62% in most subsequent quarters. This improvement was primarily driven by a reduction in cost of sales relative to sales, which decreased from approximately -43.75% to the range of -38% to -40% in later periods. Notably, fluctuations in cost of sales often correlated inversely with gross profit variations.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses as a percentage of sales exhibited a gradual decline from levels near -33.58% in early 2020 to lower levels around -27% to -28% by mid-2021. However, from late 2021 onwards, there was a tendency for these expenses to increase again, reaching as high as -39.76% in the last observed quarter, indicating heightened spending relative to sales in later periods.
Research and Development Expenses
Research and development (R&D) expenses remained relatively stable throughout, mostly fluctuating between -5.4% and -6.8% of sales. Small rises and falls suggest continued consistent investment in innovation with no major strategic shifts evidenced in the R&D spending ratio.
Operating Costs and Profitability
Operating costs as a percentage of sales showed considerable variability, initially improving from about -40.19% to lower levels near -32.9% during 2020 and early 2021. However, operating costs exhibited notable volatility in subsequent quarters, reaching peaks exceeding -42% and ultimately increasing substantially to -46.55% in the latest period. Concurrently, operating profit margins reflected this volatility, improving to above 29% of sales by April 2021 but declining thereafter, falling as low as 12.8% by the end of 2024. This indicates a trend of shrinking operating profitability in the recent periods.
Non-Operating Income and Expenses
Non-operating income and expense items showed inconsistent patterns. Other income (expense), net, varied between positive spikes (notably 8.57% in mid-2020) and negative troughs (-2.14% at the end of 2023). Interest expense generally declined modestly over time, offset somewhat by increasing interest income, which peaked at 1.83% of sales in late 2023. Overall, nonoperating income exhibited significant fluctuations, occasionally exerting minor positive or negative pressure on earnings before taxes.
Earnings Before Income Taxes and Net Earnings
Earnings before income taxes improved from the mid-teens in early 2020 to a peak above 30% by April 2021, reflecting strong profitability. However, this was followed by a declining trajectory, with earnings before taxes falling to approximately 11% by mid-2025. Correspondingly, net earnings as a percentage of sales followed a similar pattern, peaking near 24-26% in 2021 and early 2023 before declining steadily to a low of 9.35% in the last recorded quarter. This decline signals weakening overall profitability in recent reporting periods.
Income Taxes
Income tax as a percentage of sales exhibited variability, fluctuating without a clear upward or downward trend. Percentages ranged between roughly -5.5% and -1.7%, occasionally showing positive values indicative of tax benefits or adjustments. The lack of a consistent direction suggests tax expense management was influenced by changing earnings and other tax related items.
Discontinued Operations and Impact on Net Earnings
Discontinued operations contributed sporadically to overall net earnings, with a small positive impact noted in early and mid-2023, but a reversal occurring by late 2023. The impact was minor relative to total net earnings but indicates that discontinued operations intermittently influenced earnings composition.
Dividends and Net Earnings Attributable to Common Stockholders
Mandatory convertible preferred stock dividends decreased over time, from around -0.7% to below -0.3%. Net earnings attributable to common stockholders mirrored the net earnings trend, peaking around 24% in early 2021 and declining to under 10% by mid-2025, consistent with the observed erosion in profitability ratios and operating performance.
Summary of Overall Financial Trends
The financial data indicates a strong profitability period in 2020-2021 characterized by rising gross margins, controlled operating costs, and elevated operating and net profits. However, from 2022 onwards, increased operating costs, rising SG&A expenses, and fluctuating non-operating income contributed to a systematic decline in operating margins and net earnings ratios. While investment in R&D remained stable, the overall trend points to weakening profitability and increased cost pressures in recent periods.