Analysis of Geographic Areas
Danaher Corp. operates in 2 regions: United States and All other.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Aggregate Accruals
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Area Asset Turnover
Danaher Corp., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| All other |
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).
- United States Asset Turnover
- The asset turnover ratio in the United States demonstrates a decline over the observed period. Starting at 6.54 in 2020, it showed a slight decrease to 6.27 in 2021, followed by a modest increase to 6.66 in 2022. However, this uptick was not sustained, as the ratio dropped significantly to 4.16 in 2023 and further declined to 3.84 in 2024. This trend indicates a decreasing efficiency in the use of assets for generating revenue in the United States market, particularly from 2022 onward.
- All Other Geographic Areas Asset Turnover
- The asset turnover ratio for all other geographic areas started at 7.03 in 2020 and increased noticeably to 9.13 in 2021. It slightly improved again to 9.29 in 2022, suggesting strong asset utilization during this period. Subsequently, the ratio declined to 6.36 in 2023 and decreased further to 5.80 in 2024. Despite this decline, the asset turnover remained above the 2020 level, implying that while there was a reduction in asset efficiency after 2022, it remained relatively robust compared to earlier years.
- Comparative Observations
- Throughout the period, asset turnover ratios in all other geographic areas consistently surpassed those in the United States, reflecting higher asset utilization efficiency abroad. Both regions experienced peak ratios around 2021-2022, followed by declines in the subsequent years. The decline in the United States is more pronounced, indicating potential challenges in that domestic market compared to international operations.
- Overall Implications
- The observed data suggest a general contraction in asset turnover efficiency for the company across all regions from 2023 onwards. The sharper decline in the United States points toward regional difficulties or strategic shifts affecting asset productivity. Meanwhile, international markets showed stronger performance initially, though they also faced a downturn later. These trends may warrant further investigation into operational factors, market conditions, or investment strategy impacting asset utilization in different geographic areas.
Area Asset Turnover: United States
Danaher Corp.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= ÷ =
- Sales
- Sales demonstrated a strong upward trajectory from 2020 through 2022, increasing from 8,616 million US dollars in 2020 to a peak of 13,365 million US dollars in 2022. However, a notable decline occurred in 2023 with sales dropping to 9,579 million US dollars. In 2024, sales slightly increased to 9,927 million US dollars but remained significantly below the 2022 peak.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment exhibited consistent growth over the five-year period. Starting at 1,317 million US dollars in 2020, the figure rose steadily each year, reaching 2,585 million US dollars by the end of 2024. This represents almost a doubling of asset value, indicating continuous investment in fixed assets despite fluctuations in sales.
- Area Asset Turnover Ratio
- The area asset turnover ratio shows a decreasing trend over time, moving from a high of 6.54 in 2020 to 3.84 in 2024. After a slight dip to 6.27 in 2021, it peaked again at 6.66 in 2022, coinciding with the highest sales figure. From 2022 onward, the ratio declined sharply, reflecting a reduced efficiency in generating sales from property, plant, and equipment.
- Overall Analysis
- The data reveals an initial period of rising sales supported by substantial asset investments, which peaked in 2022. Following this peak, sales contracted notably in 2023 and only partially recovered in 2024. Meanwhile, fixed assets continued to increase steadily, causing a decline in the area asset turnover ratio. This suggests diminishing returns on asset utilization in the most recent years, potentially indicating inefficiencies or delays in translating asset growth into proportional sales revenue.
Area Asset Turnover: All other
Danaher Corp.; All other; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= ÷ =
- Sales
- The sales figures initially increased significantly from 13,668 million USD in 2020 to 18,170 million USD in 2021, representing a strong growth phase. However, in the subsequent years, sales showed a decline, dropping slightly to 18,106 million USD in 2022, followed by more pronounced decreases to 14,311 million USD in 2023 and then to 13,948 million USD in 2024. This indicates a shift from rapid growth to a period of contraction or stabilization at a lower sales level.
- Property, plant and equipment, net
- The net value of property, plant, and equipment exhibited a generally upward trend throughout the period. Starting at 1,945 million USD in 2020, the value increased modestly to 1,991 million USD in 2021, then slightly declined to 1,949 million USD in 2022. However, it rose again to 2,249 million USD in 2023 and further to 2,405 million USD in 2024. This suggests ongoing investment in physical assets, particularly in the later years, despite fluctuations in sales.
- Area asset turnover (ratio)
- The area asset turnover ratio, which measures sales generated per unit of property, plant, and equipment, showed considerable variation during the timeframe. The ratio improved from 7.03 in 2020 to a peak of 9.29 in 2022, indicating higher efficiency in asset utilization. However, this was followed by a sharp decline to 6.36 in 2023 and further decrease to 5.8 in 2024. This decline correlates with the reduction in sales and the increase in asset base, pointing to decreased operational efficiency or asset productivity in recent years.
Sales
Danaher Corp., sales by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| All other | |||||
| Total |
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).
The annual geographic area sales data reveals notable trends across the reported periods.
- United States Sales
- Sales in the United States exhibited a consistent increase from 2020 through 2022, growing from 8,616 million USD in 2020 to a peak of 13,365 million USD in 2022. However, in 2023, there was a significant decline to 9,579 million USD, followed by a slight recovery to 9,927 million USD in 2024. Overall, the US sales show a peak in 2022 and a subsequent downward adjustment in the last two periods.
- All Other Regions Sales
- Sales in other regions demonstrated a similar upward trend from 2020 to 2021, increasing sharply from 13,668 million USD to 18,170 million USD. The sales remained relatively stable in 2022 at 18,106 million USD, then experienced a decline in 2023 to 14,311 million USD, and a further decrease to 13,948 million USD in 2024. This indicates a peak period between 2021 and 2022, followed by a downward trend in recent years.
- Total Sales
- Total sales across all geographic areas combined showed steady growth from 22,284 million USD in 2020 to a high of 31,471 million USD in 2022. Subsequently, total sales decreased substantially in 2023 to 23,890 million USD and remained almost unchanged in 2024 at 23,875 million USD. This trend reflects an overall growth phase up to 2022 and a marked contraction afterward, largely influenced by declines in both the United States and other regions.
In summary, the data indicates a growth period in sales through 2022 followed by a notable decline in 2023 and 2024. The decreases in both the United States and other global regions suggest possible external challenges affecting revenues across all regions. The partial recovery observed in US sales in 2024 contrasts with continued declines in other regions, highlighting differential regional performance within the overall sales portfolio.
Property, plant and equipment, net
Danaher Corp., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| All other | |||||
| Total |
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).
- United States Property, Plant and Equipment, Net
- The data indicates a consistent upward trend in the net value of property, plant, and equipment in the United States over the five-year period. Starting at $1,317 million in 2020, the value increased significantly to $2,585 million by 2024. This represents a nearly doubling of the asset base, with steady annual growth observed each year, reflecting ongoing investment or asset appreciation in this geographic area.
- All Other Geographic Areas Property, Plant and Equipment, Net
- For the "All other" geographic category, the net property, plant, and equipment values show a more moderate increase overall. Starting at $1,945 million in 2020, the value slightly fluctuated in the subsequent years, with a minor decline in 2022 to $1,949 million from $1,991 million in 2021. However, after 2022, the figure increased to $2,249 million in 2023 and continued to rise to $2,405 million in 2024. This indicates a recovering or renewed investment pattern post-2022 with a general positive trend emerging.
- Total Property, Plant and Equipment, Net
- The total net value combining all geographic areas shows a clear growth trajectory from $3,262 million in 2020 to $4,990 million in 2024. Annual increments occur consistently, with a notable acceleration in growth rates in the later years. This overall increase is primarily driven by the substantial growth in the United States segment, although the "All other" category contributes steadily to this total as well.
- Overall Analysis
- The analysis reveals a strong expansion in property, plant, and equipment net values over the period under review. The United States segment demonstrates the most significant growth, suggesting a strategic focus or enhanced asset allocation in this region. The "All other" areas have experienced some volatility but have shown recovery and growth in the last two years. The substantial total increase reflects overall capital investment and asset growth, indicative of possible expansion activities or improvements in asset valuation.