Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Danaher Corp., solvency ratios
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Danaher Corp.’s debt to equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| 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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Danaher Corp.’s debt to capital ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| 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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Danaher Corp.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| 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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Danaher Corp.’s financial leverage ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Danaher Corp.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Danaher Corp.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity
Danaher Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Total Danaher stockholders’ equity | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.53 | 0.72 | 0.35 | 0.40 | 0.53 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.57 | 0.58 | 0.64 | 0.90 | 1.07 | |
| Anthem Inc. | 0.60 | 0.63 | 0.67 | 0.75 | 0.63 | |
| Becton, Dickinson & Co. | 0.75 | 0.92 | 1.02 | 1.46 | 1.51 | |
| Bristol-Myers Squibb Co. | 1.34 | 0.91 | 0.52 | 0.68 | 0.41 | |
| CVS Health Corp. | 0.93 | 1.07 | 1.26 | 0.72 | 0.75 | |
| Edwards Lifesciences Corp. | 0.13 | 0.14 | 0.19 | 0.35 | 0.31 | |
| HCA Healthcare Inc. | 54.20 | — | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.49 | 0.51 | 0.51 | 0.66 | 0.60 | |
| Stryker Corp. | 1.07 | 0.87 | 0.84 | 0.72 | 0.72 | |
| UnitedHealth Group Inc. | 0.66 | 0.71 | 0.71 | 0.66 | 0.86 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.81 | 0.85 | 0.86 | 0.86 | 0.86 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.97 | 0.98 | 0.94 | 0.90 | 0.85 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 21,204 ÷ 39,766 = 0.53
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.’s debt to equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Equity (including Operating Lease Liability)
Danaher Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Current operating lease liabilities | 189 | 158 | — | — | — | |
| Long-term operating lease liabilities | 785 | 639 | — | — | — | |
| Total debt (including operating lease liability) | 22,178 | 22,526 | 9,740 | 10,522 | 12,269 | |
| Total Danaher stockholders’ equity | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.56 | 0.74 | 0.35 | 0.40 | 0.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.61 | 0.61 | 0.64 | 0.90 | 1.07 | |
| Anthem Inc. | 0.63 | 0.65 | 0.67 | 0.75 | 0.63 | |
| Becton, Dickinson & Co. | 0.77 | 0.92 | 1.02 | 1.46 | 1.51 | |
| Bristol-Myers Squibb Co. | 1.37 | 0.92 | 0.52 | 0.68 | 0.41 | |
| CVS Health Corp. | 1.23 | 1.39 | 1.26 | 0.72 | 0.75 | |
| Edwards Lifesciences Corp. | 0.15 | 0.16 | 0.19 | 0.35 | 0.31 | |
| HCA Healthcare Inc. | 57.79 | — | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.51 | 0.51 | 0.51 | 0.66 | 0.60 | |
| Stryker Corp. | 1.10 | 0.90 | 0.84 | 0.72 | 0.72 | |
| UnitedHealth Group Inc. | 0.73 | 0.77 | 0.71 | 0.66 | 0.86 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.89 | 0.93 | 0.86 | 0.86 | 0.86 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 1.03 | 1.05 | 0.94 | 0.90 | 0.85 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 22,178 ÷ 39,766 = 0.56
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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Capital
Danaher Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Total Danaher stockholders’ equity | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Total capital | 60,970 | 52,000 | 37,955 | 36,880 | 35,272 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.35 | 0.42 | 0.26 | 0.29 | 0.35 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.36 | 0.37 | 0.39 | 0.47 | 0.52 | |
| Anthem Inc. | 0.38 | 0.39 | 0.40 | 0.43 | 0.39 | |
| Becton, Dickinson & Co. | 0.43 | 0.48 | 0.51 | 0.59 | 0.60 | |
| Bristol-Myers Squibb Co. | 0.57 | 0.48 | 0.34 | 0.40 | 0.29 | |
| CVS Health Corp. | 0.48 | 0.52 | 0.56 | 0.42 | 0.43 | |
| Edwards Lifesciences Corp. | 0.12 | 0.13 | 0.16 | 0.26 | 0.24 | |
| HCA Healthcare Inc. | 0.98 | 1.09 | 1.18 | 1.26 | 1.30 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.33 | 0.34 | 0.34 | 0.40 | 0.38 | |
| Stryker Corp. | 0.52 | 0.46 | 0.46 | 0.42 | 0.42 | |
| UnitedHealth Group Inc. | 0.40 | 0.41 | 0.41 | 0.40 | 0.46 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.49 | 0.50 | 0.48 | 0.47 | 0.46 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 21,204 ÷ 60,970 = 0.35
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.’s debt to capital ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Danaher Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Current operating lease liabilities | 189 | 158 | — | — | — | |
| Long-term operating lease liabilities | 785 | 639 | — | — | — | |
| Total debt (including operating lease liability) | 22,178 | 22,526 | 9,740 | 10,522 | 12,269 | |
| Total Danaher stockholders’ equity | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Total capital (including operating lease liability) | 61,944 | 52,797 | 37,955 | 36,880 | 35,272 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.36 | 0.43 | 0.26 | 0.29 | 0.35 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.38 | 0.38 | 0.39 | 0.47 | 0.52 | |
| Anthem Inc. | 0.39 | 0.40 | 0.40 | 0.43 | 0.39 | |
| Becton, Dickinson & Co. | 0.44 | 0.48 | 0.51 | 0.59 | 0.60 | |
| Bristol-Myers Squibb Co. | 0.58 | 0.48 | 0.34 | 0.40 | 0.29 | |
| CVS Health Corp. | 0.55 | 0.58 | 0.56 | 0.42 | 0.43 | |
| Edwards Lifesciences Corp. | 0.13 | 0.14 | 0.16 | 0.26 | 0.24 | |
| HCA Healthcare Inc. | 0.98 | 1.09 | 1.18 | 1.26 | 1.30 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.34 | 0.34 | 0.34 | 0.40 | 0.38 | |
| Stryker Corp. | 0.52 | 0.47 | 0.46 | 0.42 | 0.42 | |
| UnitedHealth Group Inc. | 0.42 | 0.44 | 0.41 | 0.40 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.47 | 0.48 | 0.46 | 0.46 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.51 | 0.51 | 0.48 | 0.47 | 0.46 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 22,178 ÷ 61,944 = 0.36
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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Assets
Danaher Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Total assets | 76,161 | 62,082 | 47,833 | 46,649 | 45,295 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.28 | 0.35 | 0.20 | 0.23 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | 0.29 | 0.37 | 0.42 | |
| Anthem Inc. | 0.23 | 0.26 | 0.27 | 0.28 | 0.24 | |
| Becton, Dickinson & Co. | 0.33 | 0.37 | 0.40 | 0.50 | 0.45 | |
| Bristol-Myers Squibb Co. | 0.43 | 0.36 | 0.21 | 0.24 | 0.20 | |
| CVS Health Corp. | 0.28 | 0.31 | 0.37 | 0.28 | 0.29 | |
| Edwards Lifesciences Corp. | 0.08 | 0.09 | 0.11 | 0.18 | 0.18 | |
| HCA Healthcare Inc. | 0.65 | 0.75 | 0.84 | 0.90 | 0.93 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.27 | 0.28 | 0.28 | 0.34 | 0.31 | |
| Stryker Corp. | 0.41 | 0.37 | 0.36 | 0.33 | 0.34 | |
| UnitedHealth Group Inc. | 0.22 | 0.23 | 0.24 | 0.23 | 0.27 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.30 | 0.32 | 0.32 | 0.33 | 0.33 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.33 | 0.33 | 0.33 | 0.32 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 21,204 ÷ 76,161 = 0.28
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.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Danaher Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 11 | 212 | 52 | 195 | 2,595 | |
| Long-term debt, excluding current portion | 21,193 | 21,517 | 9,689 | 10,327 | 9,674 | |
| Total debt | 21,204 | 21,729 | 9,740 | 10,522 | 12,269 | |
| Current operating lease liabilities | 189 | 158 | — | — | — | |
| Long-term operating lease liabilities | 785 | 639 | — | — | — | |
| Total debt (including operating lease liability) | 22,178 | 22,526 | 9,740 | 10,522 | 12,269 | |
| Total assets | 76,161 | 62,082 | 47,833 | 46,649 | 45,295 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.29 | 0.36 | 0.20 | 0.23 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.27 | 0.28 | 0.29 | 0.37 | 0.42 | |
| Anthem Inc. | 0.24 | 0.27 | 0.27 | 0.28 | 0.24 | |
| Becton, Dickinson & Co. | 0.34 | 0.37 | 0.40 | 0.50 | 0.45 | |
| Bristol-Myers Squibb Co. | 0.44 | 0.37 | 0.21 | 0.24 | 0.20 | |
| CVS Health Corp. | 0.37 | 0.40 | 0.37 | 0.28 | 0.29 | |
| Edwards Lifesciences Corp. | 0.10 | 0.10 | 0.11 | 0.18 | 0.18 | |
| HCA Healthcare Inc. | 0.70 | 0.79 | 0.84 | 0.90 | 0.93 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.28 | 0.28 | 0.28 | 0.34 | 0.31 | |
| Stryker Corp. | 0.42 | 0.38 | 0.36 | 0.33 | 0.34 | |
| UnitedHealth Group Inc. | 0.24 | 0.26 | 0.24 | 0.23 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.33 | 0.35 | 0.32 | 0.33 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.35 | 0.36 | 0.33 | 0.33 | 0.32 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 22,178 ÷ 76,161 = 0.29
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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Financial Leverage
Danaher Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 76,161 | 62,082 | 47,833 | 46,649 | 45,295 | |
| Total Danaher stockholders’ equity | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.92 | 2.05 | 1.70 | 1.77 | 1.97 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.21 | 2.18 | 2.20 | 2.47 | 2.56 | |
| Anthem Inc. | 2.61 | 2.44 | 2.51 | 2.66 | 2.59 | |
| Becton, Dickinson & Co. | 2.27 | 2.46 | 2.57 | 2.91 | 3.35 | |
| Bristol-Myers Squibb Co. | 3.13 | 2.52 | 2.49 | 2.86 | 2.08 | |
| CVS Health Corp. | 3.32 | 3.48 | 3.37 | 2.52 | 2.56 | |
| Edwards Lifesciences Corp. | 1.58 | 1.56 | 1.70 | 1.93 | 1.72 | |
| HCA Healthcare Inc. | 83.02 | — | — | — | — | |
| Intuitive Surgical Inc. | 1.15 | 1.18 | 1.17 | 1.22 | 1.12 | |
| Medtronic PLC | 1.79 | 1.79 | 1.80 | 1.98 | 1.92 | |
| Stryker Corp. | 2.62 | 2.36 | 2.32 | 2.23 | 2.14 | |
| UnitedHealth Group Inc. | 3.01 | 3.02 | 2.94 | 2.91 | 3.21 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.70 | 2.69 | 2.65 | 2.62 | 2.63 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.97 | 2.94 | 2.86 | 2.76 | 2.65 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 76,161 ÷ 39,766 = 1.92
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.’s financial leverage ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020. |
Interest Coverage
Danaher Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,646 | 3,008 | 2,651 | 2,492 | 2,554 | |
| Less: Earnings from discontinued operations, net of income taxes | — | 576 | — | 22 | 400 | |
| Add: Income tax expense | 849 | 873 | 642 | 469 | 458 | |
| Add: Interest expense | 275 | 109 | 157 | 163 | 184 | |
| Earnings before interest and tax (EBIT) | 4,770 | 3,414 | 3,450 | 3,102 | 2,796 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 17.35 | 31.44 | 21.92 | 19.06 | 15.16 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 10.10 | 7.09 | 4.48 | 3.47 | 4.28 | |
| Anthem Inc. | 8.96 | 9.02 | 7.73 | 6.36 | 7.30 | |
| Becton, Dickinson & Co. | 2.87 | 2.84 | 2.66 | 2.87 | 3.77 | |
| Bristol-Myers Squibb Co. | -3.84 | 8.58 | 33.61 | 27.18 | 36.42 | |
| CVS Health Corp. | 4.36 | 3.96 | 1.54 | 8.79 | 9.01 | |
| Edwards Lifesciences Corp. | 59.02 | 57.35 | 26.46 | 45.61 | 39.43 | |
| HCA Healthcare Inc. | 4.43 | 3.88 | 4.04 | 3.59 | 3.82 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 4.71 | 4.60 | 5.95 | 5.21 | 4.13 | |
| Stryker Corp. | 7.20 | 9.93 | 9.92 | 9.35 | 9.43 | |
| UnitedHealth Group Inc. | 13.47 | 11.55 | 12.39 | 12.82 | 12.12 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.84 | 6.58 | 6.20 | 7.48 | 7.62 | |
| Interest Coverage, Industry | ||||||
| Health Care | 7.14 | 8.51 | 7.90 | 9.26 | 9.81 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,770 ÷ 275 = 17.35
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.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Fixed Charge Coverage
Danaher Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,646 | 3,008 | 2,651 | 2,492 | 2,554 | |
| Less: Earnings from discontinued operations, net of income taxes | — | 576 | — | 22 | 400 | |
| Add: Income tax expense | 849 | 873 | 642 | 469 | 458 | |
| Add: Interest expense | 275 | 109 | 157 | 163 | 184 | |
| Earnings before interest and tax (EBIT) | 4,770 | 3,414 | 3,450 | 3,102 | 2,796 | |
| Add: Operating lease expense | 262 | 241 | 282 | 249 | 220 | |
| Earnings before fixed charges and tax | 5,032 | 3,655 | 3,732 | 3,351 | 3,016 | |
| Interest expense | 275 | 109 | 157 | 163 | 184 | |
| Operating lease expense | 262 | 241 | 282 | 249 | 220 | |
| Mandatory convertible preferred stock dividends | 136 | 68 | — | — | — | |
| Mandatory convertible preferred stock dividends, tax adjustment1 | 36 | 18 | — | — | — | |
| Mandatory convertible preferred stock dividends, after tax adjustment | 172 | 87 | — | — | — | |
| Fixed charges | 709 | 436 | 439 | 412 | 404 | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 7.10 | 8.38 | 8.49 | 8.14 | 7.46 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Abbott Laboratories | 6.68 | 5.14 | 4.48 | 3.47 | 4.28 | |
| Anthem Inc. | 6.10 | 7.34 | 6.28 | 5.20 | 5.90 | |
| Becton, Dickinson & Co. | 2.07 | 1.99 | 1.92 | 2.18 | 3.15 | |
| Bristol-Myers Squibb Co. | -3.08 | 7.10 | 20.07 | 17.24 | 19.96 | |
| CVS Health Corp. | 2.75 | 2.56 | 1.27 | 3.35 | 3.47 | |
| Edwards Lifesciences Corp. | 20.80 | 25.00 | 14.38 | 21.49 | 18.53 | |
| HCA Healthcare Inc. | 3.67 | 3.37 | 4.04 | 3.59 | 3.82 | |
| Intuitive Surgical Inc. | 58.48 | 79.65 | — | — | — | |
| Medtronic PLC | 3.98 | 3.97 | 4.87 | 4.32 | 3.62 | |
| Stryker Corp. | 5.39 | 7.10 | 6.86 | 6.55 | 6.65 | |
| UnitedHealth Group Inc. | 8.51 | 7.65 | 8.41 | 8.40 | 8.08 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 4.06 | 4.62 | 4.50 | 5.15 | 5.25 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 5.26 | 6.30 | 6.02 | 6.86 | 7.22 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).
1 2020 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (136 × 21.00%) ÷ (1 − 21.00%) = 36
2 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,032 ÷ 709 = 7.10
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.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |