Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

Calculation

Danaher Corp., ROA, 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 net earnings exhibited an overall upward trend from 2005 through 2021, increasing from $898 million to a peak of $7,209 million. This growth was punctuated by intermittent periods of moderate decline or stagnation, such as a decrease from 2014 ($3,357 million) to 2016 ($2,492 million), followed by recovery and new highs in 2020 and 2021. However, after reaching the peak in 2021, net earnings declined significantly in 2022 and 2023, falling to $4,764 million and $3,899 million respectively, suggesting emerging financial challenges or adverse market conditions in the recent years.

Total assets showed consistent growth over the entire period, rising from $9,163 million in 2005 to a maximum of $84,488 million in 2023. Notable increases occurred between 2013 and 2015, and again from 2017 to 2021. The asset base shrank slightly in 2024 to $77,542 million, indicating some asset disposals or revaluations. This steady expansion reflects ongoing investments and possibly acquisitions to support business growth.

The Return on Assets (ROA) percentage steadily declined from 9.8% in 2005 to a low near 4.79% in 2020, signaling decreasing efficiency in generating earnings from asset holdings over time. This trend was temporarily reversed in 2021 and 2022 with ROA increasing to 7.73% and 8.55%, likely driven by the sharp earnings growth during those years. However, ROA dropped again to 5.64% and 5.03% in 2023 and 2024, aligning with the declines in net earnings despite a large asset base. This suggests the company struggled to maintain high profitability relative to its assets in the most recent years.

Overall, the data indicate robust growth in asset size accompanied by fluctuating profitability and efficiency metrics. While the company expanded significantly, the ability to convert assets into consistent earnings showed volatility, with declining margins in the early part of the period, a short-term improvement, and subsequent deterioration most recently. The declining ROA in recent years despite a large asset base highlights a potential area for management focus on improving operational efficiency and profitability.


Comparison to Competitors

Danaher Corp., ROA, 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., ROA, 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)