Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Danaher Corp., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.87 | 1.40 | 1.68 | 1.89 | 1.43 | |
| Quick ratio | 1.25 | 0.83 | 1.18 | 1.30 | 0.89 | |
| Cash ratio | 0.68 | 0.31 | 0.71 | 0.71 | 0.32 |
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 liquidity position, as indicated by the observed ratios, demonstrates fluctuations over the five-year period. Generally, the ratios exhibit cyclical behavior, with improvements followed by declines, and then renewed strengthening. A notable pattern is the concurrent movement of all three ratios, suggesting a consistent underlying influence on the company’s short-term asset management.
- Current Ratio
- The current ratio increased from 1.43 in 2021 to 1.89 in 2022, indicating improved ability to cover short-term liabilities with short-term assets. This was followed by a decrease to 1.68 in 2023 and a further decline to 1.40 in 2024. However, the ratio rebounded significantly to 1.87 in 2025, reaching a level comparable to that of 2022. This suggests potential cyclicality or strategic shifts in working capital management.
- Quick Ratio
- The quick ratio mirrors the trend of the current ratio, rising from 0.89 in 2021 to 1.30 in 2022. A subsequent decrease to 1.18 in 2023 was followed by a more substantial drop to 0.83 in 2024. Similar to the current ratio, the quick ratio experienced a recovery in 2025, increasing to 1.25. The quick ratio consistently remains below the current ratio, indicating a reliance on inventory to meet current obligations.
- Cash Ratio
- The cash ratio demonstrates the most pronounced fluctuations. It increased substantially from 0.32 in 2021 to 0.71 in 2022 and remained stable in 2023. A significant decline to 0.31 occurred in 2024, followed by a recovery to 0.68 in 2025. This suggests a more active approach to cash management, potentially involving strategic deployment of cash reserves or increased short-term borrowing. The cash ratio consistently represents the smallest proportion of current assets available to cover immediate liabilities.
Overall, the observed liquidity ratios suggest a dynamic financial position. While the company generally maintains adequate liquidity, the fluctuations indicate potential sensitivity to operational changes or external economic factors. The recovery observed in 2025 across all ratios suggests a strengthening of the short-term financial health.
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Current Ratio
Danaher Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 12,756) | 9,497) | 13,937) | 15,883) | 11,648) | |
| Current liabilities | 6,807) | 6,798) | 8,274) | 8,389) | 8,140) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.87 | 1.40 | 1.68 | 1.89 | 1.43 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.67 | 0.66 | 0.87 | 0.96 | 0.79 | |
| Amgen Inc. | 1.14 | 1.26 | 1.65 | 1.41 | 1.59 | |
| Bristol-Myers Squibb Co. | 1.26 | 1.25 | 1.43 | 1.25 | 1.52 | |
| Eli Lilly & Co. | 1.58 | 1.15 | 0.94 | 1.05 | 1.23 | |
| Gilead Sciences Inc. | 1.55 | 1.60 | 1.43 | 1.29 | 1.27 | |
| Johnson & Johnson | 1.03 | 1.11 | 1.16 | 0.99 | 1.35 | |
| Merck & Co. Inc. | 1.54 | 1.36 | 1.25 | 1.47 | 1.27 | |
| Pfizer Inc. | 1.16 | 1.17 | 0.91 | 1.22 | 1.40 | |
| Regeneron Pharmaceuticals Inc. | 4.13 | 4.73 | 5.69 | 5.06 | 3.56 | |
| Thermo Fisher Scientific Inc. | 1.89 | 1.66 | 1.75 | 1.48 | 1.50 | |
| Vertex Pharmaceuticals Inc. | 2.90 | 2.69 | 3.99 | 4.83 | 4.46 | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.30 | 1.24 | 1.27 | 1.30 | 1.36 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.23 | 1.21 | 1.23 | 1.23 | 1.31 | |
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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,756 ÷ 6,807 = 1.87
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before declining and then increasing again, suggesting shifts in the company’s short-term asset and liability management.
- Overall Trend
- The current ratio began at 1.43 in 2021, increased to a peak of 1.89 in 2022, then decreased to 1.40 in 2024. A subsequent rise to 1.87 was observed in 2025. This indicates a period of strengthening liquidity followed by a weakening, and then a recovery.
- 2021-2022
- From 2021 to 2022, the current ratio increased by 0.46. This improvement coincided with a larger increase in current assets (US$4,235 million) compared to the increase in current liabilities (US$249 million), suggesting the company bolstered its short-term resources more significantly than its immediate obligations.
- 2022-2024
- Between 2022 and 2024, the current ratio decreased by 0.49. This decline was driven by a more substantial decrease in current assets (US$6,386 million) than the decrease in current liabilities (US$1,591 million). This suggests a strategic reduction in liquid assets or a shift in asset allocation, potentially towards longer-term investments, alongside a reduction in short-term obligations.
- 2024-2025
- From 2024 to 2025, the current ratio increased by 0.47. This improvement was attributable to a larger increase in current assets (US$3,259 million) compared to the increase in current liabilities (US$9 million). This indicates a renewed focus on strengthening short-term liquidity.
The fluctuations in the current ratio suggest dynamic management of working capital. While the ratio remained above 1.0 throughout the period, indicating the company possesses more current assets than current liabilities, the variations warrant further investigation into the underlying drivers of these changes.
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Quick Ratio
Danaher Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 4,615) | 2,078) | 5,864) | 5,995) | 2,586) | |
| Trade accounts receivable, less allowance for doubtful accounts | 3,913) | 3,537) | 3,922) | 4,918) | 4,631) | |
| Total quick assets | 8,528) | 5,615) | 9,786) | 10,913) | 7,217) | |
| Current liabilities | 6,807) | 6,798) | 8,274) | 8,389) | 8,140) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.25 | 0.83 | 1.18 | 1.30 | 0.89 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.41 | 0.43 | 0.63 | 0.69 | 0.56 | |
| Amgen Inc. | 0.73 | 0.81 | 0.99 | 0.95 | 1.06 | |
| Bristol-Myers Squibb Co. | 0.94 | 0.91 | 1.04 | 0.87 | 1.20 | |
| Eli Lilly & Co. | 0.78 | 0.58 | 0.52 | 0.62 | 0.79 | |
| Gilead Sciences Inc. | 1.06 | 1.20 | 1.06 | 0.99 | 0.95 | |
| Johnson & Johnson | 0.69 | 0.78 | 0.82 | 0.71 | 1.04 | |
| Merck & Co. Inc. | 0.93 | 0.84 | 0.68 | 0.93 | 0.73 | |
| Pfizer Inc. | 0.69 | 0.74 | 0.50 | 0.80 | 1.00 | |
| Regeneron Pharmaceuticals Inc. | 3.28 | 3.86 | 4.82 | 4.16 | 2.98 | |
| Thermo Fisher Scientific Inc. | 1.36 | 1.14 | 1.27 | 1.06 | 1.00 | |
| Vertex Pharmaceuticals Inc. | 2.24 | 2.17 | 3.60 | 4.46 | 4.04 | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.83 | 0.82 | 0.85 | 0.91 | 0.98 | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.88 | 0.88 | 0.90 | 0.93 | 1.00 | |
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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,528 ÷ 6,807 = 1.25
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before declining and then recovering. A review of the underlying components reveals the drivers of these changes.
- Overall Trend
- The quick ratio began at 0.89 in 2021, increased to a peak of 1.30 in 2022, then decreased to 0.83 in 2024, before rising again to 1.25 in 2025. This indicates a period of improving short-term liquidity followed by a weakening, and subsequent recovery.
- Quick Asset Analysis
- Total quick assets increased significantly from $7,217 million in 2021 to $10,913 million in 2022. A subsequent decrease to $9,786 million in 2023 was followed by a more substantial decline to $5,615 million in 2024. Finally, quick assets increased to $8,528 million in 2025. These changes in quick assets directly influenced the overall quick ratio.
- Current Liability Analysis
- Current liabilities remained relatively stable between 2021 and 2023, fluctuating between $8,140 million and $8,389 million. A decrease was observed in 2024, with current liabilities falling to $6,798 million, and remained nearly unchanged at $6,807 million in 2025. The relative stability of current liabilities, combined with the fluctuations in quick assets, contributed to the observed changes in the quick ratio.
- Ratio Dynamics
- The increase in the quick ratio from 2021 to 2022 was primarily driven by the substantial growth in quick assets, while current liabilities remained relatively constant. The decline in the ratio from 2022 to 2024 was largely attributable to the decrease in quick assets, despite a concurrent reduction in current liabilities. The recovery in 2025 was due to an increase in quick assets, while current liabilities remained stable.
The observed fluctuations suggest potential shifts in the company’s working capital management or short-term financing strategies. Further investigation into the composition of quick assets and the reasons for their changes would provide a more comprehensive understanding of the company’s liquidity position.
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Cash Ratio
Danaher Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 4,615) | 2,078) | 5,864) | 5,995) | 2,586) | |
| Total cash assets | 4,615) | 2,078) | 5,864) | 5,995) | 2,586) | |
| Current liabilities | 6,807) | 6,798) | 8,274) | 8,389) | 8,140) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.68 | 0.31 | 0.71 | 0.71 | 0.32 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.12 | 0.14 | 0.34 | 0.31 | 0.28 | |
| Amgen Inc. | 0.36 | 0.52 | 0.60 | 0.59 | 0.66 | |
| Bristol-Myers Squibb Co. | 0.46 | 0.46 | 0.55 | 0.42 | 0.78 | |
| Eli Lilly & Co. | 0.21 | 0.12 | 0.10 | 0.12 | 0.25 | |
| Gilead Sciences Inc. | 0.65 | 0.83 | 0.64 | 0.57 | 0.56 | |
| Johnson & Johnson | 0.37 | 0.49 | 0.50 | 0.42 | 0.70 | |
| Merck & Co. Inc. | 0.51 | 0.48 | 0.28 | 0.54 | 0.34 | |
| Pfizer Inc. | 0.37 | 0.48 | 0.27 | 0.54 | 0.73 | |
| Regeneron Pharmaceuticals Inc. | 1.97 | 2.28 | 3.17 | 2.46 | 1.45 | |
| Thermo Fisher Scientific Inc. | 0.67 | 0.42 | 0.58 | 0.50 | 0.33 | |
| Vertex Pharmaceuticals Inc. | 1.71 | 1.72 | 3.16 | 3.93 | 3.51 | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.41 | 0.45 | 0.47 | 0.52 | 0.58 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.43 | 0.46 | 0.50 | 0.54 | 0.60 | |
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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,615 ÷ 6,807 = 0.68
2 Click competitor name to see calculations.
The cash ratio exhibited considerable fluctuation between 2021 and 2025. Initially, a substantial increase was observed, followed by a decline and subsequent recovery. This analysis details these movements and their potential implications.
- Cash Ratio Trend
- The cash ratio began at 0.32 in 2021, indicating the company held 32 cents of cash for every dollar of current liabilities. A significant increase to 0.71 was recorded in 2022, and this level was maintained through 2023. A notable decrease occurred in 2024, with the ratio falling to 0.31. The ratio then increased again in 2025, reaching 0.68.
- Total Cash Assets
- Total cash assets increased significantly from US$2,586 million in 2021 to US$5,995 million in 2022. A slight decrease to US$5,864 million occurred in 2023. A substantial reduction was then observed in 2024, with cash assets falling to US$2,078 million. Cash assets increased again in 2025, reaching US$4,615 million.
- Current Liabilities
- Current liabilities remained relatively stable between 2021 and 2023, fluctuating between US$8,140 million and US$8,389 million. A decrease was observed in 2024, with current liabilities falling to US$6,798 million, and this level was largely maintained in 2025 at US$6,807 million.
The increase in the cash ratio from 2021 to 2022 and 2023 was primarily driven by a large increase in total cash assets, while current liabilities remained relatively constant. The subsequent decline in 2024 was due to a significant decrease in cash assets coupled with a decrease in current liabilities. The recovery in 2025 was attributable to an increase in cash assets, while current liabilities remained stable. These fluctuations suggest a dynamic approach to cash management and potentially strategic uses of cash reserves.
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