Stock Analysis on Net
Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Danaher Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 0.53 0.72 0.35 0.40 0.53
Debt to equity (including operating lease liability) 0.56 0.74 0.35 0.40 0.53
Debt to capital 0.35 0.42 0.26 0.29 0.35
Debt to capital (including operating lease liability) 0.36 0.43 0.26 0.29 0.35
Debt to assets 0.28 0.35 0.20 0.23 0.27
Debt to assets (including operating lease liability) 0.29 0.36 0.20 0.23 0.27
Financial leverage 1.92 2.05 1.70 1.77 1.97
Coverage Ratios
Interest coverage 17.35 31.44 21.92 19.06 15.16
Fixed charge coverage 7.10 8.38 8.49 8.14 7.46

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).

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.