Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Danaher Corp., solvency ratios
Based on: 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Danaher Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Danaher Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Danaher Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Danaher Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Danaher Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Danaher Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Danaher Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Danaher Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Danaher Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity
Danaher Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Total Danaher stockholders’ equity | 45,167 | 39,766 | 30,271 | 28,214 | 26,358 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.49 | 0.53 | 0.72 | 0.35 | 0.40 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.50 | 0.57 | 0.58 | 0.64 | 0.90 | |
| Anthem Inc. | 0.64 | 0.60 | 0.63 | 0.67 | 0.75 | |
| Bristol-Myers Squibb Co. | 1.24 | 1.34 | 0.91 | 0.52 | 0.68 | |
| CVS Health Corp. | 0.75 | 0.93 | 1.07 | 1.26 | 0.72 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.51 | 0.49 | 0.51 | 0.51 | 0.66 | |
| UnitedHealth Group Inc. | 0.64 | 0.66 | 0.71 | 0.71 | 0.66 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.65 | 0.72 | 0.74 | 0.71 | 0.67 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.79 | 0.93 | 0.93 | 0.86 | 0.81 | |
Based on: 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).
1 2021 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 22,176 ÷ 45,167 = 0.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Danaher Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Danaher Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Current operating lease liabilities | 207 | 189 | 158 | — | — | |
| Long-term operating lease liabilities | 889 | 785 | 639 | — | — | |
| Total debt (including operating lease liability) | 23,272 | 22,178 | 22,526 | 9,740 | 10,522 | |
| Total Danaher stockholders’ equity | 45,167 | 39,766 | 30,271 | 28,214 | 26,358 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.52 | 0.56 | 0.74 | 0.35 | 0.40 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.54 | 0.61 | 0.61 | 0.64 | 0.90 | |
| Anthem Inc. | 0.67 | 0.63 | 0.65 | 0.67 | 0.75 | |
| Bristol-Myers Squibb Co. | 1.27 | 1.37 | 0.92 | 0.52 | 0.68 | |
| CVS Health Corp. | 1.01 | 1.23 | 1.39 | 1.26 | 0.72 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | |
| Medtronic PLC | 0.53 | 0.51 | 0.51 | 0.51 | 0.66 | |
| UnitedHealth Group Inc. | 0.70 | 0.73 | 0.77 | 0.71 | 0.66 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.73 | 0.81 | 0.83 | 0.71 | 0.67 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.84 | 0.99 | 0.99 | 0.86 | 0.81 | |
Based on: 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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 23,272 ÷ 45,167 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Danaher Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Danaher Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Total Danaher stockholders’ equity | 45,167 | 39,766 | 30,271 | 28,214 | 26,358 | |
| Total capital | 67,343 | 60,970 | 52,000 | 37,955 | 36,880 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.33 | 0.35 | 0.42 | 0.26 | 0.29 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.34 | 0.36 | 0.37 | 0.39 | 0.47 | |
| Anthem Inc. | 0.39 | 0.38 | 0.39 | 0.40 | 0.43 | |
| Bristol-Myers Squibb Co. | 0.55 | 0.57 | 0.48 | 0.34 | 0.40 | |
| CVS Health Corp. | 0.43 | 0.48 | 0.52 | 0.56 | 0.42 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.34 | 0.33 | 0.34 | 0.34 | 0.40 | |
| UnitedHealth Group Inc. | 0.39 | 0.40 | 0.41 | 0.41 | 0.40 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.39 | 0.42 | 0.43 | 0.42 | 0.40 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.44 | 0.48 | 0.48 | 0.46 | 0.45 | |
Based on: 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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 22,176 ÷ 67,343 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Danaher Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Danaher Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Current operating lease liabilities | 207 | 189 | 158 | — | — | |
| Long-term operating lease liabilities | 889 | 785 | 639 | — | — | |
| Total debt (including operating lease liability) | 23,272 | 22,178 | 22,526 | 9,740 | 10,522 | |
| Total Danaher stockholders’ equity | 45,167 | 39,766 | 30,271 | 28,214 | 26,358 | |
| Total capital (including operating lease liability) | 68,439 | 61,944 | 52,797 | 37,955 | 36,880 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.36 | 0.43 | 0.26 | 0.29 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.35 | 0.38 | 0.38 | 0.39 | 0.47 | |
| Anthem Inc. | 0.40 | 0.39 | 0.40 | 0.40 | 0.43 | |
| Bristol-Myers Squibb Co. | 0.56 | 0.58 | 0.48 | 0.34 | 0.40 | |
| CVS Health Corp. | 0.50 | 0.55 | 0.58 | 0.56 | 0.42 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | |
| Medtronic PLC | 0.35 | 0.34 | 0.34 | 0.34 | 0.40 | |
| UnitedHealth Group Inc. | 0.41 | 0.42 | 0.44 | 0.41 | 0.40 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.42 | 0.45 | 0.45 | 0.42 | 0.40 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.50 | 0.50 | 0.46 | 0.45 | |
Based on: 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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 23,272 ÷ 68,439 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Danaher Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Danaher Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Total assets | 83,184 | 76,161 | 62,082 | 47,833 | 46,649 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.27 | 0.28 | 0.35 | 0.20 | 0.23 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | 0.27 | 0.29 | 0.37 | |
| Anthem Inc. | 0.24 | 0.23 | 0.26 | 0.27 | 0.28 | |
| Bristol-Myers Squibb Co. | 0.41 | 0.43 | 0.36 | 0.21 | 0.24 | |
| CVS Health Corp. | 0.24 | 0.28 | 0.31 | 0.37 | 0.28 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.28 | 0.27 | 0.28 | 0.28 | 0.34 | |
| UnitedHealth Group Inc. | 0.22 | 0.22 | 0.23 | 0.24 | 0.23 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.26 | 0.28 | 0.29 | 0.29 | 0.28 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.31 | 0.32 | 0.31 | 0.31 | |
Based on: 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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 22,176 ÷ 83,184 = 0.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Danaher Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Danaher Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 8 | 11 | 212 | 52 | 195 | |
| Long-term debt, excluding current portion | 22,168 | 21,193 | 21,517 | 9,689 | 10,327 | |
| Total debt | 22,176 | 21,204 | 21,729 | 9,740 | 10,522 | |
| Current operating lease liabilities | 207 | 189 | 158 | — | — | |
| Long-term operating lease liabilities | 889 | 785 | 639 | — | — | |
| Total debt (including operating lease liability) | 23,272 | 22,178 | 22,526 | 9,740 | 10,522 | |
| Total assets | 83,184 | 76,161 | 62,082 | 47,833 | 46,649 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.28 | 0.29 | 0.36 | 0.20 | 0.23 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | 0.28 | 0.29 | 0.37 | |
| Anthem Inc. | 0.25 | 0.24 | 0.27 | 0.27 | 0.28 | |
| Bristol-Myers Squibb Co. | 0.42 | 0.44 | 0.37 | 0.21 | 0.24 | |
| CVS Health Corp. | 0.33 | 0.37 | 0.40 | 0.37 | 0.28 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | |
| Medtronic PLC | 0.29 | 0.28 | 0.28 | 0.28 | 0.34 | |
| UnitedHealth Group Inc. | 0.24 | 0.24 | 0.26 | 0.24 | 0.23 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.29 | 0.31 | 0.32 | 0.29 | 0.28 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.34 | 0.34 | 0.31 | 0.31 | |
Based on: 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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 23,272 ÷ 83,184 = 0.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Danaher Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Danaher Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 83,184 | 76,161 | 62,082 | 47,833 | 46,649 | |
| Total Danaher stockholders’ equity | 45,167 | 39,766 | 30,271 | 28,214 | 26,358 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.84 | 1.92 | 2.05 | 1.70 | 1.77 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.10 | 2.21 | 2.18 | 2.20 | 2.47 | |
| Anthem Inc. | 2.70 | 2.61 | 2.44 | 2.51 | 2.66 | |
| Bristol-Myers Squibb Co. | 3.04 | 3.13 | 2.52 | 2.49 | 2.86 | |
| CVS Health Corp. | 3.10 | 3.32 | 3.48 | 3.37 | 2.52 | |
| Intuitive Surgical Inc. | 1.14 | 1.15 | 1.18 | 1.17 | 1.22 | |
| Medtronic PLC | 1.81 | 1.79 | 1.79 | 1.80 | 1.98 | |
| UnitedHealth Group Inc. | 2.96 | 3.01 | 3.02 | 2.94 | 2.91 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.53 | 2.61 | 2.57 | 2.49 | 2.40 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.74 | 2.95 | 2.89 | 2.78 | 2.65 | |
Based on: 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).
1 2021 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 83,184 ÷ 45,167 = 1.84
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Danaher Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Danaher Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 6,433 | 3,646 | 3,008 | 2,651 | 2,492 | |
| Less: Earnings from discontinued operations, net of income taxes | 86 | — | 576 | — | 22 | |
| Add: Income tax expense | 1,251 | 849 | 873 | 642 | 469 | |
| Add: Interest expense | 238 | 275 | 109 | 157 | 163 | |
| Earnings before interest and tax (EBIT) | 7,836 | 4,770 | 3,414 | 3,450 | 3,102 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 32.92 | 17.35 | 31.44 | 21.92 | 19.06 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 16.41 | 10.10 | 7.09 | 4.48 | 3.47 | |
| Anthem Inc. | 10.93 | 8.96 | 9.02 | 7.73 | 6.36 | |
| Bristol-Myers Squibb Co. | 7.07 | -3.84 | 8.58 | 33.61 | 27.18 | |
| CVS Health Corp. | 5.16 | 4.36 | 3.96 | 1.54 | 8.79 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 5.21 | 4.71 | 4.60 | 5.95 | 5.21 | |
| UnitedHealth Group Inc. | 14.44 | 13.47 | 11.55 | 12.39 | 12.82 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.80 | 6.13 | 7.22 | 6.86 | 8.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | 13.43 | 7.42 | 9.11 | 8.47 | 10.15 | |
Based on: 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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,836 ÷ 238 = 32.92
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Danaher Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Fixed Charge Coverage
Danaher Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 6,433 | 3,646 | 3,008 | 2,651 | 2,492 | |
| Less: Earnings from discontinued operations, net of income taxes | 86 | — | 576 | — | 22 | |
| Add: Income tax expense | 1,251 | 849 | 873 | 642 | 469 | |
| Add: Interest expense | 238 | 275 | 109 | 157 | 163 | |
| Earnings before interest and tax (EBIT) | 7,836 | 4,770 | 3,414 | 3,450 | 3,102 | |
| Add: Operating lease expense | 305 | 262 | 241 | 282 | 249 | |
| Earnings before fixed charges and tax | 8,141 | 5,032 | 3,655 | 3,732 | 3,351 | |
| Interest expense | 238 | 275 | 109 | 157 | 163 | |
| Operating lease expense | 305 | 262 | 241 | 282 | 249 | |
| Mandatory convertible preferred stock dividends | 164 | 136 | 68 | — | — | |
| Mandatory convertible preferred stock dividends, tax adjustment1 | 44 | 36 | 18 | — | — | |
| Mandatory convertible preferred stock dividends, after tax adjustment | 208 | 172 | 87 | — | — | |
| Fixed charges | 751 | 709 | 436 | 439 | 412 | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 10.85 | 7.10 | 8.38 | 8.49 | 8.14 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Abbott Laboratories | 10.21 | 6.68 | 5.14 | 4.48 | 3.47 | |
| Anthem Inc. | 8.48 | 6.10 | 7.34 | 6.28 | 5.20 | |
| Bristol-Myers Squibb Co. | 6.01 | -3.08 | 7.10 | 20.07 | 17.24 | |
| CVS Health Corp. | 3.03 | 2.75 | 2.56 | 1.27 | 3.35 | |
| Intuitive Surgical Inc. | 93.66 | 58.48 | 79.65 | — | — | |
| Medtronic PLC | 4.31 | 3.98 | 3.97 | 4.87 | 4.32 | |
| UnitedHealth Group Inc. | 8.80 | 8.51 | 7.65 | 8.41 | 8.40 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 6.19 | 4.13 | 4.87 | 4.67 | 5.51 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 9.33 | 5.42 | 6.68 | 6.31 | 7.25 | |
Based on: 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).
1 2021 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (164 × 21.00%) ÷ (1 − 21.00%) = 44
2 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,141 ÷ 751 = 10.85
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Danaher Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |