Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Danaher Corp., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The analysis of the provided annual financial data reveals several notable trends in liquidity and working capital management over the period under review.

Current Assets
Current assets demonstrate a general upward trend from 2005 through 2019, increasing from approximately 2,945 million USD to a peak of 25,597 million USD in 2019. This substantial increase suggests significant growth in liquid and short-term assets available to meet obligations. However, from 2019 onwards, there is a marked decrease in current assets, declining to 9,497 million USD by 2024. This drop may indicate asset divestitures, changes in asset composition, or operational shifts impacting liquidity levels.
Current Liabilities
Current liabilities show an overall increasing pattern from 2,269 million USD in 2005 to a peak near 8,389 million USD in 2022. The steady growth in liabilities suggests rising short-term obligations, possibly due to increased operational scale or financing activities. Nonetheless, a modest decline is observed in the final years, reaching 6,798 million USD by 2024, which may reflect efforts to reduce short-term debt or improve working capital management.
Current Ratio
The current ratio, a key indicator of short-term liquidity, fluctuates over the years. From 2005, the ratio improves from 1.3 to a high of 1.89 in 2009, suggesting stronger liquidity relative to current liabilities. The ratio then declines to below 1.0 in 2016 (0.97), indicating a potential liquidity strain during that year. Subsequently, the ratio recovers and even spikes dramatically to 5.19 in 2019, coinciding with the peak in current assets. After 2019, the ratio decreases but remains above 1.0, settling at 1.4 in 2024. This pattern indicates periods of fluctuating liquidity strength, with notable volatility around 2016 and 2019.

In summary, the financial data presents a narrative of expanding short-term assets and liabilities through much of the period, with occasional volatility in liquidity. The pronounced spike in the current ratio and current assets in 2019 suggests an anomalous event or strategic adjustment in asset holdings or liabilities. Subsequent declines indicate a reversion towards more normalized levels of liquidity. Continuous monitoring of these metrics would be prudent to ensure adequate liquidity and efficient working capital deployment in future periods.


Comparison to Competitors

Danaher Corp., current ratio, long-term trends, comparison to competitors

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Danaher Corp., current ratio, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)