Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Danaher Corp. (NYSE:DHR)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Danaher Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 0.72 0.35 0.40 0.53 0.54
Debt to equity (including operating lease liability) 0.74 0.35 0.40 0.53 0.54
Debt to capital 0.42 0.26 0.29 0.35 0.35
Debt to capital (including operating lease liability) 0.43 0.26 0.29 0.35 0.35
Debt to assets 0.35 0.20 0.23 0.27 0.27
Debt to assets (including operating lease liability) 0.36 0.20 0.23 0.27 0.27
Financial leverage 2.05 1.70 1.77 1.97 2.04
Coverage Ratios
Interest coverage 31.44 21.92 19.06 15.16 21.42
Fixed charge coverage 8.38 8.49 8.14 7.46 8.84

Based on: 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), 10-K (filing date: 2016-02-24).

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Danaher Corp.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Danaher Corp.’s financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

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 2017 to 2018 and from 2018 to 2019.
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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Debt to Equity

Danaher Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Solvency Ratio
Debt to equity1 0.72 0.35 0.40 0.53 0.54
Benchmarks
Debt to Equity, Competitors2
Becton, Dickinson & Co. 0.92 1.02 1.46 1.51 1.79
Boston Scientific Corp. 0.72 0.81 0.80 0.81 0.90
Edwards Lifesciences Corp. 0.14 0.19 0.35 0.31 0.24
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.51 0.51 0.66 0.60 0.68
Stryker Corp. 0.87 0.84 0.72 0.72 0.47
Thermo Fisher Scientific Inc. 0.60 0.69 0.83 0.77 0.59
UnitedHealth Group Inc. 0.71 0.71 0.66 0.86 0.95
Debt to Equity, Sector
Health Care Equipment & Services 0.64 0.62 0.69 0.71 0.73
Debt to Equity, Industry
Health Care 0.90 0.82 0.83 0.78 0.71

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 21,729,100 ÷ 30,270,600 = 0.72

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Equity (including Operating Lease Liability)

Danaher Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
Current operating lease liabilities under ASC 842 157,800  —  —  —  — 
Long-term operating lease liabilities under ASC 842 639,100  —  —  —  — 
Total debt (including operating lease liability) 22,526,000  9,740,300  10,522,100  12,269,000  12,870,400 
 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.74 0.35 0.40 0.53 0.54
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boston Scientific Corp. 0.75 0.81 0.80 0.81 0.90
Edwards Lifesciences Corp. 0.16 0.19 0.35 0.31 0.24
Intuitive Surgical Inc. 0.01 0.00 0.00 0.00 0.00
Medtronic PLC 0.51 0.51 0.66 0.60 0.68
Stryker Corp. 0.90 0.84 0.72 0.72 0.47
Thermo Fisher Scientific Inc. 0.62 0.69 0.83 0.77 0.59
UnitedHealth Group Inc. 0.77 0.71 0.66 0.86 0.95
Debt to Equity (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.67 0.62 0.69 0.71 0.73
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.92 0.82 0.83 0.78 0.71

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 22,526,000 ÷ 30,270,600 = 0.74

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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Capital

Danaher Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Total capital 51,999,700  37,954,700  36,880,300  35,271,800  36,560,700 
Solvency Ratio
Debt to capital1 0.42 0.26 0.29 0.35 0.35
Benchmarks
Debt to Capital, Competitors2
Becton, Dickinson & Co. 0.48 0.51 0.59 0.60 0.64
Boston Scientific Corp. 0.42 0.45 0.44 0.45 0.47
Edwards Lifesciences Corp. 0.13 0.16 0.26 0.24 0.19
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.34 0.34 0.40 0.38 0.40
Stryker Corp. 0.46 0.46 0.42 0.42 0.32
Thermo Fisher Scientific Inc. 0.37 0.41 0.45 0.44 0.37
UnitedHealth Group Inc. 0.41 0.41 0.40 0.46 0.49
Debt to Capital, Sector
Health Care Equipment & Services 0.39 0.38 0.41 0.41 0.42
Debt to Capital, Industry
Health Care 0.47 0.45 0.45 0.44 0.41

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 21,729,100 ÷ 51,999,700 = 0.42

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

Danaher Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
Current operating lease liabilities under ASC 842 157,800  —  —  —  — 
Long-term operating lease liabilities under ASC 842 639,100  —  —  —  — 
Total debt (including operating lease liability) 22,526,000  9,740,300  10,522,100  12,269,000  12,870,400 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Total capital (including operating lease liability) 52,796,600  37,954,700  36,880,300  35,271,800  36,560,700 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.43 0.26 0.29 0.35 0.35
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boston Scientific Corp. 0.43 0.45 0.44 0.45 0.47
Edwards Lifesciences Corp. 0.14 0.16 0.26 0.24 0.19
Intuitive Surgical Inc. 0.01 0.00 0.00 0.00 0.00
Medtronic PLC 0.34 0.34 0.40 0.38 0.40
Stryker Corp. 0.47 0.46 0.42 0.42 0.32
Thermo Fisher Scientific Inc. 0.38 0.41 0.45 0.44 0.37
UnitedHealth Group Inc. 0.44 0.41 0.40 0.46 0.49
Debt to Capital (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.40 0.38 0.41 0.41 0.42
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.45 0.45 0.44 0.41

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 22,526,000 ÷ 52,796,600 = 0.43

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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Assets

Danaher Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
 
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Solvency Ratio
Debt to assets1 0.35 0.20 0.23 0.27 0.27
Benchmarks
Debt to Assets, Competitors2
Becton, Dickinson & Co. 0.37 0.40 0.50 0.45 0.48
Boston Scientific Corp. 0.33 0.34 0.29 0.30 0.31
Edwards Lifesciences Corp. 0.09 0.11 0.18 0.18 0.15
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.28 0.28 0.34 0.31 0.34
Stryker Corp. 0.37 0.36 0.33 0.34 0.25
Thermo Fisher Scientific Inc. 0.30 0.34 0.37 0.36 0.31
UnitedHealth Group Inc. 0.23 0.24 0.23 0.27 0.29
Debt to Assets, Sector
Health Care Equipment & Services 0.29 0.28 0.30 0.30 0.31
Debt to Assets, Industry
Health Care 0.33 0.31 0.31 0.31 0.29

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 21,729,100 ÷ 62,081,600 = 0.35

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

Danaher Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Notes payable and current portion of long-term debt 212,400  51,800  194,700  2,594,800  845,200 
Long-term debt, excluding current portion 21,516,700  9,688,500  10,327,400  9,674,200  12,025,200 
Total debt 21,729,100  9,740,300  10,522,100  12,269,000  12,870,400 
Current operating lease liabilities under ASC 842 157,800  —  —  —  — 
Long-term operating lease liabilities under ASC 842 639,100  —  —  —  — 
Total debt (including operating lease liability) 22,526,000  9,740,300  10,522,100  12,269,000  12,870,400 
 
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.36 0.20 0.23 0.27 0.27
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boston Scientific Corp. 0.34 0.34 0.29 0.30 0.31
Edwards Lifesciences Corp. 0.10 0.11 0.18 0.18 0.15
Intuitive Surgical Inc. 0.01 0.00 0.00 0.00 0.00
Medtronic PLC 0.28 0.28 0.34 0.31 0.34
Stryker Corp. 0.38 0.36 0.33 0.34 0.25
Thermo Fisher Scientific Inc. 0.32 0.34 0.37 0.36 0.31
UnitedHealth Group Inc. 0.26 0.24 0.23 0.27 0.29
Debt to Assets (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.30 0.28 0.30 0.30 0.31
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.34 0.31 0.31 0.31 0.29

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 22,526,000 ÷ 62,081,600 = 0.36

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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Financial Leverage

Danaher Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Total assets 62,081,600  47,832,500  46,648,600  45,295,300  48,222,200 
Total Danaher stockholders’ equity 30,270,600  28,214,400  26,358,200  23,002,800  23,690,300 
Solvency Ratio
Financial leverage1 2.05 1.70 1.77 1.97 2.04
Benchmarks
Financial Leverage, Competitors2
Becton, Dickinson & Co. 2.46 2.57 2.91 3.35 3.74
Boston Scientific Corp. 2.20 2.41 2.72 2.69 2.87
Edwards Lifesciences Corp. 1.56 1.70 1.93 1.72 1.62
Intuitive Surgical Inc. 1.18 1.17 1.22 1.12 1.14
Medtronic PLC 1.79 1.80 1.98 1.92 2.00
Stryker Corp. 2.36 2.32 2.23 2.14 1.91
Thermo Fisher Scientific Inc. 1.97 2.04 2.23 2.13 1.92
UnitedHealth Group Inc. 3.02 2.94 2.91 3.21 3.29
Financial Leverage, Sector
Health Care Equipment & Services 2.25 2.21 2.31 2.33 2.34
Financial Leverage, Industry
Health Care 2.75 2.66 2.64 2.52 2.41

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 62,081,600 ÷ 30,270,600 = 2.05

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Interest Coverage

Danaher Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Less: Earnings from discontinued operations, net of income taxes 575,900  —  22,300  400,300  758,700 
Add: Income tax expense 873,000  641,900  469,000  457,900  725,300 
Add: Interest expense 108,600  157,400  162,700  184,400  162,800 
Earnings before interest and tax (EBIT) 3,413,900  3,450,200  3,101,500  2,795,700  3,486,800 
Solvency Ratio
Interest coverage1 31.44 21.92 19.06 15.16 21.42
Benchmarks
Interest Coverage, Competitors2
Becton, Dickinson & Co. 2.84 2.66 2.87 3.77 2.99
Boston Scientific Corp. 2.45 6.90 5.07 1.76 -1.29
Edwards Lifesciences Corp. 57.35 26.46 45.61 39.43 37.19
Intuitive Surgical Inc.
Medtronic PLC 4.60 5.95 5.21 4.13 6.23
Stryker Corp. 9.93 9.92 9.35 9.43 17.06
Thermo Fisher Scientific Inc. 7.02 5.89 5.10 5.31 5.67
UnitedHealth Group Inc. 11.55 12.39 12.82 12.12 13.95
Interest Coverage, Sector
Health Care Equipment & Services 8.03 8.63 8.42 7.47 8.88
Interest Coverage, Industry
Health Care 10.32 10.02 10.37 10.96 13.39

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,413,900 ÷ 108,600 = 31.44

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 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Danaher Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Statutory federal income tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Selected Financial Data (US$ in thousands)
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Less: Earnings from discontinued operations, net of income taxes 575,900  —  22,300  400,300  758,700 
Add: Income tax expense 873,000  641,900  469,000  457,900  725,300 
Add: Interest expense 108,600  157,400  162,700  184,400  162,800 
Earnings before interest and tax (EBIT) 3,413,900  3,450,200  3,101,500  2,795,700  3,486,800 
Add: Operating lease expense 240,900  282,000  249,000  220,000  261,000 
Earnings before fixed charges and tax 3,654,800  3,732,200  3,350,500  3,015,700  3,747,800 
 
Interest expense 108,600  157,400  162,700  184,400  162,800 
Operating lease expense 240,900  282,000  249,000  220,000  261,000 
Mandatory convertible preferred stock dividends 68,400  —  —  —  — 
Mandatory convertible preferred stock dividends, tax adjustment1 18,182  —  —  —  — 
Mandatory convertible preferred stock dividends, after tax adjustment 86,582  —  —  —  — 
Fixed charges 436,082  439,400  411,700  404,400  423,800 
Solvency Ratio
Fixed charge coverage2 8.38 8.49 8.14 7.46 8.84
Benchmarks
Fixed Charge Coverage, Competitors3
Becton, Dickinson & Co. 1.99 1.92 2.18 3.15 2.61
Boston Scientific Corp. 2.24 5.27 3.94 1.57 -0.81
Edwards Lifesciences Corp. 25.00 14.38 21.49 18.53 16.68
Intuitive Surgical Inc. 79.65
Medtronic PLC 3.97 4.87 4.32 3.62 5.05
Stryker Corp. 7.10 6.86 6.55 6.65 9.30
Thermo Fisher Scientific Inc. 5.60 4.72 4.07 4.11 4.25
UnitedHealth Group Inc. 7.65 8.41 8.40 8.08 8.61
Fixed Charge Coverage, Sector
Health Care Equipment & Services 5.78 6.16 6.05 5.61 6.17
Fixed Charge Coverage, Industry
Health Care 7.94 7.90 8.16 8.63 10.02

Based on: 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), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (68,400 × 21.00%) ÷ (1 − 21.00%) = 18,182

2 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,654,800 ÷ 436,082 = 8.38

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.