Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Danaher Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net earnings	3,614)	3,899)	4,764)	7,209)	6,433)
Earnings from discontinued operations, net of income taxes	(14)	—)	(543)	—)	(86)
Net earnings from continuing operations	3,600)	3,899)	4,221)	7,209)	6,347)
Depreciation	750)	721)	675)	738)	718)
Amortization of intangible assets	1,697)	1,631)	1,491)	1,484)	1,450)
Amortization of acquisition-related inventory fair value step-up	—)	25)	8)	—)	59)
Stock-based compensation expense	298)	288)	306)	336)	218)
Contract settlement expense	—)	—)	—)	—)	542)
Pretax loss on early extinguishment of borrowings	—)	—)	—)	—)	96)
Investment (gains) losses, pretax gain on sale of product line and other	228)	57)	182)	271)	(414)
Impairment charges	562)	265)	77)	—)	—)
Noncash items	3,535)	2,987)	2,739)	2,829)	2,669)
Change in deferred income taxes	(440)	(483)	(1,204)	(559)	(229)
Change in trade accounts receivable, net	(216)	331)	322)	(477)	(611)
Change in inventories	(58)	147)	185)	(486)	(502)
Change in trade accounts payable	9)	19)	(149)	5)	549)
Change in prepaid expenses and other assets	(55)	274)	419)	(78)	(4)
Change in accrued expenses and other liabilities	41)	(486)	(43)	76)	139)
Change in operating capital	(719)	(198)	(470)	(1,519)	(658)
Net cash provided by operating activities	6,416)	6,688)	6,490)	8,519)	8,358)
Cash paid for acquisitions	—)	(558)	(5,610)	(637)	(10,961)
Payments for additions to property, plant and equipment	(1,156)	(1,392)	(1,383)	(1,152)	(1,294)
Proceeds from sales of property, plant and equipment	33)	13)	12)	9)	13)
Payments for purchases of investments	(127)	(331)	(172)	(523)	(934)
Proceeds from sales of investments	12)	253)	61)	18)	126)
Proceeds from sale of product lines	9)	—)	—)	—)	26)
All other investing activities	33)	34)	44)	51)	37)
Net cash used in investing activities	(1,196)	(1,981)	(7,048)	(2,234)	(12,987)
Proceeds from the issuance of common stock in connection with stock-based compensation	85)	162)	68)	31)	86)
Payment of dividends	(878)	(768)	(821)	(818)	(742)
Net proceeds from (repayments of) borrowings, maturities of 90 days or less	(11)	5)	(1,006)	(723)	2,265)
Borrowings, maturities longer than 90 days	1,556)	—)	—)	—)	984)
Repayments of borrowings, maturities longer than 90 days	(500)	(1,674)	(620)	(965)	(1,186)
Distribution from discontinued operations	—)	—)	2,600)	—)	—)
Payments for repurchase of common stock	(3,088)	(5,979)	—)	—)	—)
Make-whole premiums to redeem borrowings prior to maturity	—)	—)	—)	—)	(96)
All other financing activities	(125)	(131)	(67)	(95)	(16)
Net cash provided by (used in) financing activities	(2,961)	(8,385)	154)	(2,570)	1,295)
Operating cash provided by discontinued operations	—)	—)	674)	—)	—)
Investing cash used in discontinued operations	—)	—)	(33)	—)	—)
Cash distributions to Veralto Corporation, net	—)	—)	(427)	—)	—)
Cash provided by discontinued operations	—)	—)	214)	—)	—)
Effect of exchange rate changes on cash and equivalents	278)	(108)	59)	(306)	(115)
Net change in cash and equivalents	2,537)	(3,786)	(131)	3,409)	(3,449)
Beginning balance of cash and equivalents	2,078)	5,864)	5,995)	2,586)	6,035)
Ending balance of cash and equivalents	4,615)	2,078)	5,864)	5,995)	2,586)

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 cash flow statement reveals a complex pattern of activity over the five-year period. While operating activities consistently generate positive cash flow, significant fluctuations occur in investing and financing activities, resulting in a volatile net change in cash and equivalents. Net earnings demonstrate a decline from 2021 to 2025, impacting overall cash flow dynamics.

Operating Activities: Net cash provided by operating activities remained relatively stable, ranging from US$6.416 billion to US$8.519 billion. However, a gradual decline is observed from 2022 through 2025. Noncash items consistently contribute a substantial portion to operating cash flow, peaking at US$3.535 billion in 2025. Changes in operating capital show variability, with a significant outflow in 2022, followed by inflows in 2023 and 2024, and a substantial outflow again in 2025. A notable decrease in change in deferred income taxes is observed throughout the period.
Investing Activities: Investing activities consistently represent a significant cash outflow. Cash paid for acquisitions is a major driver of this outflow, particularly in 2021 with a substantial US$10.961 billion expenditure, and again in 2023 with US$5.610 billion. Payments for additions to property, plant, and equipment remain relatively consistent around US$1.2 billion to US$1.4 billion annually. Proceeds from sales of investments and property, plant, and equipment are comparatively small and do not offset the significant cash outflows from acquisitions and capital expenditures. A substantial decrease in net cash used in investing activities is observed from 2021 to 2025.
Financing Activities: Financing activities demonstrate considerable volatility. 2022 shows a significant net cash outflow of US$2.570 billion, largely driven by repayments of borrowings. 2023 exhibits a net cash inflow of US$154 million, while 2024 and 2025 show substantial net cash outflows of US$8.385 billion and US$2.961 billion, respectively. These outflows are primarily attributable to payments for the repurchase of common stock, which escalate significantly in 2024 and 2025. Dividend payments remain relatively stable, around US$742 million to US$878 million annually. Borrowings and repayments of debt fluctuate throughout the period.
Discontinued Operations: Discontinued operations contribute to cash flow in 2023, with a significant distribution of US$2.6 billion. Operating and investing cash flows related to discontinued operations are also present in 2023. Cash distributions to Veralto Corporation represent a cash outflow in 2023.
Cash and Equivalents: The net change in cash and equivalents is highly variable, with a large decrease in 2021, a substantial increase in 2022, a decrease in 2023, and a significant decrease in 2024, followed by an increase in 2025. The ending balance of cash and equivalents increases from US$2.586 billion in 2022 to US$4.615 billion in 2025, despite the overall volatility. Exchange rate changes have a notable impact on cash and equivalents, with both positive and negative effects observed throughout the period.

Overall, the company’s cash flow profile is characterized by strong operating cash generation offset by substantial investments in acquisitions and, increasingly, share repurchases. The financing activities demonstrate a shift towards utilizing cash for shareholder returns in later years. The impact of discontinued operations is concentrated in 2023.

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Danaher Corp. (NYSE:DHR)

Cash Flow Statement