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: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Solvency ratios for the analyzed period demonstrate a generally improving, then stabilizing, financial position. A consistent pattern of decreasing leverage is observed across multiple metrics from 2021 to 2024, followed by a slight increase in some ratios in 2025. Coverage ratios, while remaining substantial, exhibit a declining trend throughout the period.
- Debt Levels
- The Debt to Equity ratio decreased from 0.49 in 2021 to 0.34 in 2023, then stabilized at 0.35 in 2024 and 2025. Including operating lease liabilities, the ratio followed a similar trajectory, moving from 0.52 to 0.37 over the same period, and then to 0.37 in 2025. Debt to Capital ratios, both with and without operating lease liabilities, show a comparable reduction from 0.33/0.34 in 2021 to 0.26/0.27 in 2024, with a slight increase to 0.26/0.27 in 2025. Debt to Assets ratios also decreased, from 0.27/0.28 in 2021 to 0.21/0.22 in 2024, before increasing slightly to 0.22/0.24 in 2025. These trends suggest a reduction in the proportion of debt financing relative to equity and assets.
- Leverage
- Financial Leverage decreased from 1.84 in 2021 to 1.57 in 2024, indicating a reduced reliance on debt financing. A slight increase to 1.59 is noted in 2025. This movement aligns with the observed declines in debt-to-capital ratios.
- Coverage Ratios
- Interest Coverage decreased consistently from 32.92 in 2021 to 16.97 in 2025. While remaining at a high level, this decline suggests a diminishing ability to cover interest expenses with earnings. Fixed Charge Coverage followed a similar pattern, decreasing from 10.85 in 2021 to 8.29 in 2025. This indicates a reduced capacity to meet all fixed financial obligations. The consistent decline in both coverage ratios warrants monitoring, despite the continued substantial coverage levels.
Overall, the period is characterized by a strengthening solvency position through 2024, followed by a stabilization with a slight increase in debt ratios in 2025. The decreasing trend in coverage ratios, however, suggests a potential weakening in the ability to service fixed charges, despite remaining at comfortable levels.
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Debt Ratios
Coverage Ratios
Debt to Equity
Danaher Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Total Danaher stockholders’ equity | 52,534) | 49,543) | 53,486) | 50,082) | 45,167) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.35 | 0.32 | 0.34 | 0.39 | 0.49 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | 20.19 | 5.73 | 3.67 | 4.98 | |
| Amgen Inc. | 6.31 | 10.23 | 10.37 | 10.64 | 4.97 | |
| Bristol-Myers Squibb Co. | 2.44 | 3.04 | 1.35 | 1.27 | 1.24 | |
| Eli Lilly & Co. | 1.60 | 2.37 | 2.34 | 1.52 | 1.88 | |
| Gilead Sciences Inc. | 1.10 | 1.38 | 1.09 | 1.19 | 1.27 | |
| Johnson & Johnson | 0.59 | 0.51 | 0.43 | 0.52 | 0.46 | |
| Merck & Co. Inc. | 0.94 | 0.80 | 0.93 | 0.67 | 0.87 | |
| Pfizer Inc. | 0.75 | 0.73 | 0.81 | 0.37 | 0.50 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.12 | 0.14 | |
| Thermo Fisher Scientific Inc. | 0.74 | 0.63 | 0.75 | 0.78 | 0.85 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.02 | 1.04 | 0.97 | 0.80 | 0.93 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.86 | 0.87 | 0.82 | 0.72 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 18,418 ÷ 52,534 = 0.35
2 Click competitor name to see calculations.
The debt to equity ratio demonstrates a generally decreasing trend over the five-year period. Initially, the ratio stood at 0.49 in 2021, indicating that for every dollar of equity, the company held approximately 49 cents of debt. This ratio consistently declined through 2023, reaching a low of 0.34. A slight increase was observed in 2024 to 0.32, followed by a further increase to 0.35 in 2025.
- Total Debt
- Total debt decreased from US$22,176 million in 2021 to US$16,005 million in 2024, representing a substantial reduction. However, debt levels increased to US$18,418 million in 2025, suggesting a potential reinvestment or financing activity during that year.
- Total Stockholders’ Equity
- Total stockholders’ equity exhibited an overall upward trend, increasing from US$45,167 million in 2021 to US$53,486 million in 2023. A decrease to US$49,543 million was noted in 2024, followed by a recovery to US$52,534 million in 2025. This indicates fluctuations in equity, potentially influenced by profitability, share repurchases, or dividend distributions.
- Debt to Equity Ratio Trend
- The consistent decline in the debt to equity ratio from 2021 to 2023 suggests a strengthening financial position, with a decreasing reliance on debt financing relative to equity. The subsequent increases in 2024 and 2025, while remaining below the 2021 level, warrant further investigation to understand the drivers behind the renewed debt accumulation.
The observed fluctuations in both debt and equity levels contribute to the dynamic nature of the debt to equity ratio. While the overall trend indicates improved solvency, the recent increases in debt suggest a potential shift in the company’s capital structure strategy.
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Debt to Equity (including Operating Lease Liability)
Danaher Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Current operating lease liabilities | 199) | 173) | 180) | 199) | 207) | |
| Long-term operating lease liabilities | 1,079) | 968) | 954) | 863) | 889) | |
| Total debt (including operating lease liability) | 19,696) | 17,146) | 19,536) | 20,739) | 23,272) | |
| Total Danaher stockholders’ equity | 52,534) | 49,543) | 53,486) | 50,082) | 45,167) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.37 | 0.35 | 0.37 | 0.41 | 0.52 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 20.46 | 5.82 | 3.72 | 5.03 | |
| Amgen Inc. | 6.40 | 10.36 | 10.50 | 10.83 | 5.07 | |
| Bristol-Myers Squibb Co. | 2.55 | 3.13 | 1.41 | 1.31 | 1.27 | |
| Eli Lilly & Co. | 1.65 | 2.45 | 2.44 | 1.59 | 1.96 | |
| Gilead Sciences Inc. | 1.13 | 1.41 | 1.12 | 1.22 | 1.30 | |
| Johnson & Johnson | 0.60 | 0.53 | 0.44 | 0.53 | 0.47 | |
| Merck & Co. Inc. | 0.96 | 0.83 | 0.97 | 0.70 | 0.91 | |
| Pfizer Inc. | 0.78 | 0.76 | 0.84 | 0.41 | 0.54 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.10 | 0.11 | 0.12 | 0.15 | |
| Thermo Fisher Scientific Inc. | 0.76 | 0.66 | 0.78 | 0.82 | 0.89 | |
| Vertex Pharmaceuticals Inc. | 0.11 | 0.11 | 0.05 | 0.06 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.05 | 1.07 | 1.00 | 0.83 | 0.96 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 0.90 | 0.85 | 0.76 | 0.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 19,696 ÷ 52,534 = 0.37
2 Click competitor name to see calculations.
The Debt to Equity ratio, including operating lease liability, demonstrates a generally decreasing trend over the five-year period. Total debt decreased from $23.272 billion in 2021 to $17.146 billion in 2024, before increasing to $19.696 billion in 2025. Simultaneously, Total Danaher stockholders’ equity exhibited an overall increase, moving from $45.167 billion in 2021 to $52.534 billion in 2025, with a slight decrease observed in 2024.
- Debt to Equity Ratio Trend
- The Debt to Equity ratio declined from 0.52 in 2021 to 0.35 in 2024, indicating a strengthening solvency position. This suggests the company was relying less on debt financing relative to equity financing during this period. However, the ratio experienced a slight increase to 0.37 in 2025, potentially due to the increase in total debt.
- Total Debt
- Total debt consistently decreased between 2021 and 2024, representing a reduction of approximately $6.126 billion. The increase in total debt in 2025, amounting to $2.55 billion, warrants further investigation to understand the underlying reasons, such as potential acquisitions, increased capital expenditures, or changes in financing strategies.
- Total Stockholders’ Equity
- Total stockholders’ equity generally increased throughout the period, indicating growth in the company’s net worth. The slight decrease in 2024, from $53.486 billion to $49.543 billion, could be attributed to factors like share repurchases, dividend payments, or unrealized losses on investments. The subsequent increase in 2025 suggests a recovery or continued growth in equity.
Overall, the company’s solvency position improved from 2021 to 2024, as evidenced by the declining Debt to Equity ratio. The slight reversal of this trend in 2025, coupled with the increase in total debt, suggests a need for continued monitoring of the company’s debt management practices.
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Debt to Capital
Danaher Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Total Danaher stockholders’ equity | 52,534) | 49,543) | 53,486) | 50,082) | 45,167) | |
| Total capital | 70,952) | 65,548) | 71,888) | 69,759) | 67,343) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.26 | 0.24 | 0.26 | 0.28 | 0.33 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.91 | 0.83 | |
| Bristol-Myers Squibb Co. | 0.71 | 0.75 | 0.57 | 0.56 | 0.55 | |
| Eli Lilly & Co. | 0.62 | 0.70 | 0.70 | 0.60 | 0.65 | |
| Gilead Sciences Inc. | 0.52 | 0.58 | 0.52 | 0.54 | 0.56 | |
| Johnson & Johnson | 0.37 | 0.34 | 0.30 | 0.34 | 0.31 | |
| Merck & Co. Inc. | 0.48 | 0.44 | 0.48 | 0.40 | 0.46 | |
| Pfizer Inc. | 0.43 | 0.42 | 0.45 | 0.27 | 0.33 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.42 | 0.39 | 0.43 | 0.44 | 0.46 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.51 | 0.49 | 0.44 | 0.48 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.47 | 0.45 | 0.42 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 18,418 ÷ 70,952 = 0.26
2 Click competitor name to see calculations.
The Debt to Capital ratio demonstrates a generally decreasing trend over the observed period, indicating a diminishing reliance on debt financing relative to the company’s total capital structure. Initial values show a ratio of 0.33 in 2021, followed by consistent declines through 2024.
- Overall Trend
- From 2021 to 2024, the Debt to Capital ratio experienced a steady decrease, moving from 0.33 to 0.24. This suggests a strengthening financial position with reduced leverage. However, the ratio increased slightly in 2025, reaching 0.26, potentially indicating a shift in financing strategy or increased investment funded by debt.
- Year-over-Year Changes
- The largest decrease occurred between 2021 and 2022, with a reduction of 0.05. Subsequent decreases were more moderate, at 0.02 between 2022 and 2023, and 0.02 again between 2023 and 2024. The increase in 2025, while small at 0.02, interrupts the prior downward trajectory.
- Capital Structure Implications
- The declining ratio from 2021 to 2024 suggests the company was either reducing its debt levels, increasing its capital base, or a combination of both. A lower Debt to Capital ratio generally implies lower financial risk, as a smaller proportion of the company’s assets are financed by debt. The slight increase in 2025 warrants further investigation to determine the underlying cause and its potential impact on the company’s long-term financial health.
The observed fluctuations, particularly the increase in the most recent year, suggest that the company’s capital structure is actively managed and responsive to changing business conditions and investment opportunities.
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Debt to Capital (including Operating Lease Liability)
Danaher Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Current operating lease liabilities | 199) | 173) | 180) | 199) | 207) | |
| Long-term operating lease liabilities | 1,079) | 968) | 954) | 863) | 889) | |
| Total debt (including operating lease liability) | 19,696) | 17,146) | 19,536) | 20,739) | 23,272) | |
| Total Danaher stockholders’ equity | 52,534) | 49,543) | 53,486) | 50,082) | 45,167) | |
| Total capital (including operating lease liability) | 72,230) | 66,689) | 73,022) | 70,821) | 68,439) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.27 | 0.26 | 0.27 | 0.29 | 0.34 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.92 | 0.84 | |
| Bristol-Myers Squibb Co. | 0.72 | 0.76 | 0.58 | 0.57 | 0.56 | |
| Eli Lilly & Co. | 0.62 | 0.71 | 0.71 | 0.61 | 0.66 | |
| Gilead Sciences Inc. | 0.53 | 0.59 | 0.53 | 0.55 | 0.56 | |
| Johnson & Johnson | 0.38 | 0.35 | 0.31 | 0.35 | 0.32 | |
| Merck & Co. Inc. | 0.49 | 0.45 | 0.49 | 0.41 | 0.48 | |
| Pfizer Inc. | 0.44 | 0.43 | 0.46 | 0.29 | 0.35 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.40 | 0.44 | 0.45 | 0.47 | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.10 | 0.04 | 0.06 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.51 | 0.52 | 0.50 | 0.45 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.47 | 0.46 | 0.43 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,696 ÷ 72,230 = 0.27
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, demonstrates a generally decreasing trend over the observed five-year period. While fluctuations exist, the company exhibits a strengthening capital structure from a debt perspective.
- Overall Trend
- The ratio declined from 0.34 in 2021 to 0.26 in 2023, indicating a reduction in the proportion of financing derived from debt relative to total capital. A slight increase to 0.27 was observed in 2024 and remained consistent in 2025.
- Total Debt (including operating lease liability)
- Total debt decreased consistently from US$23,272 million in 2021 to US$17,146 million in 2023. An increase to US$19,696 million was noted in 2025, potentially due to new financing activities or acquisitions, but remained below the 2021 level.
- Total Capital (including operating lease liability)
- Total capital generally increased from US$68,439 million in 2021 to US$73,022 million in 2023. A decrease to US$66,689 million occurred in 2024, followed by a recovery to US$72,230 million in 2025. This suggests fluctuations in equity or other capital components alongside debt changes.
The stabilization of the Debt to Capital ratio at 0.27 in the most recent two years suggests a potential equilibrium point in the company’s capital structure management. The initial decline in the ratio indicates a deliberate or opportunistic reduction in leverage, while the subsequent leveling off may reflect a comfortable debt level given current operational and investment needs.
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Debt to Assets
Danaher Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Total assets | 83,464) | 77,542) | 84,488) | 84,350) | 83,184) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.22 | 0.21 | 0.22 | 0.23 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.50 | 0.44 | 0.46 | 0.52 | |
| Amgen Inc. | 0.60 | 0.65 | 0.67 | 0.60 | 0.54 | |
| Bristol-Myers Squibb Co. | 0.50 | 0.54 | 0.42 | 0.41 | 0.41 | |
| Eli Lilly & Co. | 0.38 | 0.43 | 0.39 | 0.33 | 0.35 | |
| Gilead Sciences Inc. | 0.42 | 0.45 | 0.40 | 0.40 | 0.39 | |
| Johnson & Johnson | 0.24 | 0.20 | 0.18 | 0.21 | 0.19 | |
| Merck & Co. Inc. | 0.36 | 0.32 | 0.33 | 0.28 | 0.31 | |
| Pfizer Inc. | 0.31 | 0.30 | 0.32 | 0.18 | 0.21 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.36 | 0.32 | 0.35 | 0.35 | 0.37 | |
| Vertex Pharmaceuticals Inc. | 0.00 | 0.01 | 0.02 | 0.03 | 0.04 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.35 | 0.35 | 0.34 | 0.31 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.32 | 0.30 | 0.28 | 0.30 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 18,418 ÷ 83,464 = 0.22
2 Click competitor name to see calculations.
The Debt-to-Assets ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening solvency position. While fluctuations occur, the company consistently maintains a moderate level of financial leverage.
- Debt-to-Assets Ratio - Overall Trend
- The Debt-to-Assets ratio decreased from 0.27 in 2021 to 0.21 in 2023. This suggests a reduction in the proportion of assets financed by debt over this period. A subsequent increase to 0.22 in 2025 indicates a slight re-introduction of debt financing, but remains below the initial level observed in 2021.
- Year-over-Year Changes
- From 2021 to 2022, the ratio declined from 0.27 to 0.23, representing a notable decrease in leverage. The decrease continued, albeit at a slower pace, from 0.23 in 2022 to 0.22 in 2023. A further decrease to 0.21 was observed between 2023 and 2024, signifying continued deleveraging. Finally, the ratio increased slightly from 0.21 to 0.22 between 2024 and 2025.
- Total Debt and Total Assets
- Total debt decreased from US$22,176 million in 2021 to US$16,005 million in 2024, contributing to the initial decline in the ratio. However, debt increased to US$18,418 million in 2025. Total assets experienced a slight increase from US$83,184 million in 2021 to US$84,488 million in 2023, then decreased to US$77,542 million in 2024 before recovering to US$83,464 million in 2025. The interplay between these changes in debt and asset values drives the observed ratio fluctuations.
- Implications
- The generally decreasing trend in the Debt-to-Assets ratio suggests the company is becoming less reliant on debt financing. This could indicate improved financial stability and reduced risk. The slight increase in 2025 warrants monitoring to determine if it represents a shift in financial strategy or a temporary fluctuation.
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Debt to Assets (including Operating Lease Liability)
Danaher Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes payable and current portion of long-term debt | 2) | 505) | 1,695) | 591) | 8) | |
| Long-term debt, excluding current portion | 18,416) | 15,500) | 16,707) | 19,086) | 22,168) | |
| Total debt | 18,418) | 16,005) | 18,402) | 19,677) | 22,176) | |
| Current operating lease liabilities | 199) | 173) | 180) | 199) | 207) | |
| Long-term operating lease liabilities | 1,079) | 968) | 954) | 863) | 889) | |
| Total debt (including operating lease liability) | 19,696) | 17,146) | 19,536) | 20,739) | 23,272) | |
| Total assets | 83,464) | 77,542) | 84,488) | 84,350) | 83,184) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.22 | 0.23 | 0.25 | 0.28 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.51 | 0.50 | 0.45 | 0.46 | 0.53 | |
| Amgen Inc. | 0.61 | 0.66 | 0.67 | 0.61 | 0.56 | |
| Bristol-Myers Squibb Co. | 0.52 | 0.55 | 0.44 | 0.42 | 0.42 | |
| Eli Lilly & Co. | 0.39 | 0.44 | 0.41 | 0.34 | 0.36 | |
| Gilead Sciences Inc. | 0.43 | 0.46 | 0.41 | 0.41 | 0.40 | |
| Johnson & Johnson | 0.25 | 0.21 | 0.18 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.37 | 0.33 | 0.34 | 0.29 | 0.33 | |
| Pfizer Inc. | 0.32 | 0.31 | 0.33 | 0.20 | 0.23 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.34 | 0.37 | 0.37 | 0.38 | |
| Vertex Pharmaceuticals Inc. | 0.08 | 0.08 | 0.04 | 0.05 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | 0.37 | 0.35 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.32 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,696 ÷ 83,464 = 0.24
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a generally decreasing trend over the five-year period. Total debt decreased from US$23,272 million in 2021 to US$17,146 million in 2024, before increasing to US$19,696 million in 2025. Simultaneously, total assets experienced a slight increase from US$83,184 million in 2021 to US$84,488 million in 2023, then decreased to US$77,542 million in 2024, and recovered to US$83,464 million in 2025.
- Debt to Assets Ratio Trend
- The ratio declined steadily from 0.28 in 2021 to 0.22 in 2024, indicating a decreasing reliance on debt financing relative to the company’s asset base. This suggests improved financial leverage. However, the ratio increased slightly to 0.24 in 2025, potentially due to an increase in debt or a decrease in assets, or a combination of both.
The most significant decrease in the Debt to Assets ratio occurred between 2021 and 2024, coinciding with a substantial reduction in total debt. The subsequent increase in 2025 warrants further investigation to determine the underlying drivers. The fluctuations in total assets also contribute to the observed changes in the ratio, with the decrease in 2024 having a notable impact.
- Debt Reduction
- The reduction in total debt between 2021 and 2024 suggests proactive debt management strategies were employed. This could include debt repayment, refinancing, or a combination of both. The increase in debt in 2025 may indicate new financing activities or acquisitions.
- Asset Fluctuations
- The decrease in total assets in 2024, followed by a recovery in 2025, could be attributed to various factors such as asset sales, acquisitions, depreciation, or changes in working capital. Understanding the composition of these asset changes is crucial for a comprehensive assessment.
Overall, the Debt to Assets ratio indicates a generally improving solvency position between 2021 and 2024, with a slight shift in 2025. Continued monitoring of these trends, alongside a deeper understanding of the underlying factors driving changes in both debt and assets, is recommended.
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Financial Leverage
Danaher Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 83,464) | 77,542) | 84,488) | 84,350) | 83,184) | |
| Total Danaher stockholders’ equity | 52,534) | 49,543) | 53,486) | 50,082) | 45,167) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.59 | 1.57 | 1.58 | 1.68 | 1.84 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | 40.65 | 13.00 | 8.04 | 9.51 | |
| Amgen Inc. | 10.46 | 15.63 | 15.59 | 17.79 | 9.13 | |
| Bristol-Myers Squibb Co. | 4.87 | 5.67 | 3.23 | 3.12 | 3.04 | |
| Eli Lilly & Co. | 4.24 | 5.55 | 5.94 | 4.65 | 5.44 | |
| Gilead Sciences Inc. | 2.60 | 3.05 | 2.72 | 2.97 | 3.23 | |
| Johnson & Johnson | 2.44 | 2.52 | 2.44 | 2.44 | 2.46 | |
| Merck & Co. Inc. | 2.60 | 2.53 | 2.84 | 2.37 | 2.77 | |
| Pfizer Inc. | 2.41 | 2.42 | 2.54 | 2.06 | 2.35 | |
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.29 | 1.27 | 1.29 | 1.36 | |
| Thermo Fisher Scientific Inc. | 2.07 | 1.96 | 2.11 | 2.21 | 2.33 | |
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.29 | 1.30 | 1.33 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.87 | 2.93 | 2.85 | 2.62 | 2.86 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.72 | 2.75 | 2.70 | 2.57 | 2.69 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 83,464 ÷ 52,534 = 1.59
2 Click competitor name to see calculations.
An examination of the financial information reveals a generally decreasing trend in financial leverage over the five-year period, although recent years show stabilization. Total assets experienced an initial increase followed by a decrease and subsequent recovery, while stockholders’ equity consistently increased until 2023, then experienced a slight decline before recovering in 2025. These movements influence the observed leverage ratios.
- Financial Leverage
- The financial leverage ratio decreased from 1.84 in 2021 to 1.58 in 2023, indicating a reduction in the proportion of assets financed by equity. This suggests a decreasing reliance on debt financing relative to equity. The ratio stabilized at 1.57 in 2024 and slightly increased to 1.59 in 2025, suggesting a potential pause in the deleveraging trend. The overall trend indicates a strengthening of the company’s financial position with respect to debt.
Total assets increased from US$83,184 million in 2021 to US$84,350 million in 2022, then remained relatively stable at US$84,488 million in 2023 before decreasing to US$77,542 million in 2024. A recovery to US$83,464 million was observed in 2025. This fluctuation in total assets, coupled with the changes in stockholders’ equity, contributes to the observed changes in financial leverage.
- Total Stockholders’ Equity
- Total stockholders’ equity demonstrated consistent growth from US$45,167 million in 2021 to US$53,486 million in 2023. A decrease to US$49,543 million occurred in 2024, followed by a recovery to US$52,534 million in 2025. This growth in equity generally supports the observed decline in financial leverage, as a larger equity base reduces the need for debt financing.
The interplay between asset levels and equity financing suggests a dynamic capital structure. While the company initially reduced its financial leverage, the stabilization in recent periods warrants continued monitoring to assess whether this represents a long-term shift in strategy or a temporary pause in the deleveraging process.
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Interest Coverage
Danaher Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,614) | 3,899) | 4,764) | 7,209) | 6,433) | |
| Less: Earnings from discontinued operations, net of income taxes | 14) | —) | 543) | —) | 86) | |
| Add: Income tax expense | 633) | 747) | 823) | 1,083) | 1,251) | |
| Add: Interest expense | 265) | 278) | 286) | 211) | 238) | |
| Earnings before interest and tax (EBIT) | 4,498) | 4,924) | 5,330) | 8,503) | 7,836) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.97 | 17.71 | 18.64 | 40.30 | 32.92 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.28 | 2.32 | 3.81 | 7.04 | 6.36 | |
| Amgen Inc. | 4.26 | 2.46 | 3.73 | 6.22 | 6.60 | |
| Bristol-Myers Squibb Co. | 5.93 | -3.30 | 8.24 | 7.26 | 7.07 | |
| Eli Lilly & Co. | 29.75 | 17.24 | 14.49 | 21.53 | 19.12 | |
| Gilead Sciences Inc. | 10.57 | 1.71 | 8.27 | 7.22 | 9.27 | |
| Johnson & Johnson | 34.55 | 23.10 | 20.51 | 79.71 | 125.46 | |
| Merck & Co. Inc. | 16.52 | 16.69 | 2.65 | 18.09 | 18.22 | |
| Pfizer Inc. | 3.82 | 3.60 | 1.48 | 29.05 | 19.83 | |
| Regeneron Pharmaceuticals Inc. | 120.42 | 87.59 | 58.52 | 82.80 | 163.75 | |
| Thermo Fisher Scientific Inc. | 6.12 | 6.03 | 5.54 | 11.56 | 17.49 | |
| Vertex Pharmaceuticals Inc. | 350.11 | 9.12 | 100.32 | 78.23 | 45.40 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 9.83 | 5.51 | 6.43 | 15.40 | 14.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | 8.96 | 6.11 | 7.51 | 14.75 | 14.14 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,498 ÷ 265 = 16.97
2 Click competitor name to see calculations.
The interest coverage ratio demonstrates a declining trend over the five-year period. While initially strong, the ability of earnings to cover interest obligations has diminished consistently.
- Earnings Before Interest and Tax (EBIT)
- EBIT peaked in 2022 at US$8,503 million before experiencing a substantial decrease to US$5,330 million in 2023. This decline continued through 2024 and 2025, reaching US$4,498 million. This decreasing trend in EBIT is a primary driver of the observed changes in interest coverage.
- Interest Expense
- Interest expense exhibited a slight decrease from US$238 million in 2021 to US$211 million in 2022. However, it then increased to US$286 million in 2023 and remained relatively stable at US$278 million and US$265 million in 2024 and 2025, respectively. The increase in interest expense from 2022 onwards contributes to the weakening interest coverage.
- Interest Coverage Ratio
- The interest coverage ratio began at 32.92 in 2021 and rose to a high of 40.30 in 2022. Following this peak, the ratio decreased significantly to 18.64 in 2023, and continued to decline to 17.71 in 2024 and 16.97 in 2025. This consistent reduction indicates a progressively reduced margin of safety in covering interest obligations with earnings. Despite remaining above 16, the downward trajectory warrants monitoring.
The combination of decreasing EBIT and relatively stable, and then increasing, interest expense has resulted in a notable weakening of the interest coverage ratio. While the ratio remains at a level that suggests a reasonable ability to meet interest payments, the trend suggests increasing financial risk.
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Fixed Charge Coverage
Danaher Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,614) | 3,899) | 4,764) | 7,209) | 6,433) | |
| Less: Earnings from discontinued operations, net of income taxes | 14) | —) | 543) | —) | 86) | |
| Add: Income tax expense | 633) | 747) | 823) | 1,083) | 1,251) | |
| Add: Interest expense | 265) | 278) | 286) | 211) | 238) | |
| Earnings before interest and tax (EBIT) | 4,498) | 4,924) | 5,330) | 8,503) | 7,836) | |
| Add: Operating lease expense | 316) | 299) | 274) | 312) | 305) | |
| Earnings before fixed charges and tax | 4,814) | 5,223) | 5,604) | 8,815) | 8,141) | |
| Interest expense | 265) | 278) | 286) | 211) | 238) | |
| Operating lease expense | 316) | 299) | 274) | 312) | 305) | |
| Mandatory convertible preferred stock dividends | —) | —) | 21) | 106) | 164) | |
| Mandatory convertible preferred stock dividends, tax adjustment1 | —) | —) | 6) | 28) | 44) | |
| Mandatory convertible preferred stock dividends, after tax adjustment | —) | —) | 27) | 134) | 208) | |
| Fixed charges | 581) | 577) | 587) | 657) | 751) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 8.29 | 9.05 | 9.55 | 13.41 | 10.85 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| AbbVie Inc. | 3.12 | 2.24 | 3.59 | 6.54 | 5.90 | |
| Amgen Inc. | 3.97 | 2.37 | 3.55 | 5.52 | 5.67 | |
| Bristol-Myers Squibb Co. | 5.27 | -2.75 | 6.69 | 6.30 | 6.01 | |
| Eli Lilly & Co. | 29.75 | 13.81 | 10.98 | 15.17 | 13.33 | |
| Gilead Sciences Inc. | 9.21 | 1.61 | 7.18 | 6.30 | 8.15 | |
| Johnson & Johnson | 28.82 | 18.47 | 16.50 | 38.72 | 48.16 | |
| Merck & Co. Inc. | 12.84 | 13.31 | 2.27 | 13.69 | 13.08 | |
| Pfizer Inc. | 3.37 | 3.13 | 1.34 | 18.79 | 14.22 | |
| Regeneron Pharmaceuticals Inc. | 66.71 | 53.13 | 46.55 | 68.67 | 138.96 | |
| Thermo Fisher Scientific Inc. | 5.04 | 5.01 | 4.61 | 8.12 | 12.19 | |
| Vertex Pharmaceuticals Inc. | 23.32 | 2.85 | 48.66 | 47.97 | 29.62 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.45 | 4.80 | 5.40 | 11.85 | 11.49 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 7.45 | 5.15 | 6.08 | 10.95 | 10.48 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0
2 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,814 ÷ 581 = 8.29
3 Click competitor name to see calculations.
The company’s ability to meet its fixed financial obligations, as indicated by fixed charge coverage, experienced fluctuations over the five-year period. Earnings before fixed charges and tax decreased overall, while fixed charges remained relatively stable. This dynamic resulted in a declining trend in the fixed charge coverage ratio.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax began at US$8,141 million in 2021, increased to US$8,815 million in 2022, and then exhibited a substantial decline to US$5,604 million in 2023. This downward trend continued, albeit at a slower pace, reaching US$5,223 million in 2024 and US$4,814 million in 2025.
- Fixed Charges
- Fixed charges demonstrated a decrease from US$751 million in 2021 to US$657 million in 2022. Subsequently, they remained relatively consistent, fluctuating between US$577 million and US$587 million from 2023 through 2025.
- Fixed Charge Coverage
- The fixed charge coverage ratio peaked at 13.41 in 2022, following a value of 10.85 in 2021. A consistent decline was then observed, with the ratio decreasing to 9.55 in 2023, 9.05 in 2024, and finally reaching 8.29 in 2025. While the ratio remained above 8.0 throughout the period, the decreasing trend suggests a weakening capacity to cover fixed obligations with earnings.
The observed decline in earnings before fixed charges and tax is the primary driver of the decreasing fixed charge coverage ratio. Despite relatively stable fixed charges, the diminishing earnings base resulted in a reduced ability to comfortably cover these obligations. Continued monitoring of earnings and fixed charge obligations is warranted.
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