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, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 0.49 0.53 0.72 0.35 0.40
Debt to equity (including operating lease liability) 0.52 0.56 0.74 0.35 0.40
Debt to capital 0.33 0.35 0.42 0.26 0.29
Debt to capital (including operating lease liability) 0.34 0.36 0.43 0.26 0.29
Debt to assets 0.27 0.28 0.35 0.20 0.23
Debt to assets (including operating lease liability) 0.28 0.29 0.36 0.20 0.23
Financial leverage 1.84 1.92 2.05 1.70 1.77
Coverage Ratios
Interest coverage 32.92 17.35 31.44 21.92 19.06
Fixed charge coverage 10.85 7.10 8.38 8.49 8.14

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Danaher Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Danaher Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Danaher Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Danaher Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Danaher Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Danaher Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Danaher Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Danaher Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Danaher Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
 
Total Danaher stockholders’ equity 45,167  39,766  30,271  28,214  26,358 
Solvency Ratio
Debt to equity1 0.49 0.53 0.72 0.35 0.40
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.50 0.57 0.58 0.64 0.90
Anthem Inc. 0.64 0.60 0.63 0.67 0.75
Bristol-Myers Squibb Co. 1.24 1.34 0.91 0.52 0.68
CVS Health Corp. 0.75 0.93 1.07 1.26 0.72
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.51 0.49 0.51 0.51 0.66
UnitedHealth Group Inc. 0.64 0.66 0.71 0.71 0.66
Debt to Equity, Sector
Health Care Equipment & Services 0.65 0.72 0.74 0.71 0.67
Debt to Equity, Industry
Health Care 0.79 0.93 0.93 0.86 0.81

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 22,176 ÷ 45,167 = 0.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Danaher Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
Current operating lease liabilities 207  189  158  —  — 
Long-term operating lease liabilities 889  785  639  —  — 
Total debt (including operating lease liability) 23,272  22,178  22,526  9,740  10,522 
 
Total Danaher stockholders’ equity 45,167  39,766  30,271  28,214  26,358 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.52 0.56 0.74 0.35 0.40
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.54 0.61 0.61 0.64 0.90
Anthem Inc. 0.67 0.63 0.65 0.67 0.75
Bristol-Myers Squibb Co. 1.27 1.37 0.92 0.52 0.68
CVS Health Corp. 1.01 1.23 1.39 1.26 0.72
Intuitive Surgical Inc. 0.01 0.01 0.01 0.00 0.00
Medtronic PLC 0.53 0.51 0.51 0.51 0.66
UnitedHealth Group Inc. 0.70 0.73 0.77 0.71 0.66
Debt to Equity (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.73 0.81 0.83 0.71 0.67
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.84 0.99 0.99 0.86 0.81

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 23,272 ÷ 45,167 = 0.52

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Danaher Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
Total Danaher stockholders’ equity 45,167  39,766  30,271  28,214  26,358 
Total capital 67,343  60,970  52,000  37,955  36,880 
Solvency Ratio
Debt to capital1 0.33 0.35 0.42 0.26 0.29
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.34 0.36 0.37 0.39 0.47
Anthem Inc. 0.39 0.38 0.39 0.40 0.43
Bristol-Myers Squibb Co. 0.55 0.57 0.48 0.34 0.40
CVS Health Corp. 0.43 0.48 0.52 0.56 0.42
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.34 0.33 0.34 0.34 0.40
UnitedHealth Group Inc. 0.39 0.40 0.41 0.41 0.40
Debt to Capital, Sector
Health Care Equipment & Services 0.39 0.42 0.43 0.42 0.40
Debt to Capital, Industry
Health Care 0.44 0.48 0.48 0.46 0.45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 22,176 ÷ 67,343 = 0.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Danaher Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
Current operating lease liabilities 207  189  158  —  — 
Long-term operating lease liabilities 889  785  639  —  — 
Total debt (including operating lease liability) 23,272  22,178  22,526  9,740  10,522 
Total Danaher stockholders’ equity 45,167  39,766  30,271  28,214  26,358 
Total capital (including operating lease liability) 68,439  61,944  52,797  37,955  36,880 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.34 0.36 0.43 0.26 0.29
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.35 0.38 0.38 0.39 0.47
Anthem Inc. 0.40 0.39 0.40 0.40 0.43
Bristol-Myers Squibb Co. 0.56 0.58 0.48 0.34 0.40
CVS Health Corp. 0.50 0.55 0.58 0.56 0.42
Intuitive Surgical Inc. 0.01 0.01 0.01 0.00 0.00
Medtronic PLC 0.35 0.34 0.34 0.34 0.40
UnitedHealth Group Inc. 0.41 0.42 0.44 0.41 0.40
Debt to Capital (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.42 0.45 0.45 0.42 0.40
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.46 0.50 0.50 0.46 0.45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 23,272 ÷ 68,439 = 0.34

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Danaher Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
 
Total assets 83,184  76,161  62,082  47,833  46,649 
Solvency Ratio
Debt to assets1 0.27 0.28 0.35 0.20 0.23
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.24 0.26 0.27 0.29 0.37
Anthem Inc. 0.24 0.23 0.26 0.27 0.28
Bristol-Myers Squibb Co. 0.41 0.43 0.36 0.21 0.24
CVS Health Corp. 0.24 0.28 0.31 0.37 0.28
Intuitive Surgical Inc. 0.00 0.00 0.00 0.00 0.00
Medtronic PLC 0.28 0.27 0.28 0.28 0.34
UnitedHealth Group Inc. 0.22 0.22 0.23 0.24 0.23
Debt to Assets, Sector
Health Care Equipment & Services 0.26 0.28 0.29 0.29 0.28
Debt to Assets, Industry
Health Care 0.29 0.31 0.32 0.31 0.31

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 22,176 ÷ 83,184 = 0.27

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Danaher Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 11  212  52  195 
Long-term debt, excluding current portion 22,168  21,193  21,517  9,689  10,327 
Total debt 22,176  21,204  21,729  9,740  10,522 
Current operating lease liabilities 207  189  158  —  — 
Long-term operating lease liabilities 889  785  639  —  — 
Total debt (including operating lease liability) 23,272  22,178  22,526  9,740  10,522 
 
Total assets 83,184  76,161  62,082  47,833  46,649 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.28 0.29 0.36 0.20 0.23
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.26 0.27 0.28 0.29 0.37
Anthem Inc. 0.25 0.24 0.27 0.27 0.28
Bristol-Myers Squibb Co. 0.42 0.44 0.37 0.21 0.24
CVS Health Corp. 0.33 0.37 0.40 0.37 0.28
Intuitive Surgical Inc. 0.01 0.01 0.01 0.00 0.00
Medtronic PLC 0.29 0.28 0.28 0.28 0.34
UnitedHealth Group Inc. 0.24 0.24 0.26 0.24 0.23
Debt to Assets (including Operating Lease Liability), Sector
Health Care Equipment & Services 0.29 0.31 0.32 0.29 0.28
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.31 0.34 0.34 0.31 0.31

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 23,272 ÷ 83,184 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Danaher Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Danaher Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 83,184  76,161  62,082  47,833  46,649 
Total Danaher stockholders’ equity 45,167  39,766  30,271  28,214  26,358 
Solvency Ratio
Financial leverage1 1.84 1.92 2.05 1.70 1.77
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.10 2.21 2.18 2.20 2.47
Anthem Inc. 2.70 2.61 2.44 2.51 2.66
Bristol-Myers Squibb Co. 3.04 3.13 2.52 2.49 2.86
CVS Health Corp. 3.10 3.32 3.48 3.37 2.52
Intuitive Surgical Inc. 1.14 1.15 1.18 1.17 1.22
Medtronic PLC 1.81 1.79 1.79 1.80 1.98
UnitedHealth Group Inc. 2.96 3.01 3.02 2.94 2.91
Financial Leverage, Sector
Health Care Equipment & Services 2.53 2.61 2.57 2.49 2.40
Financial Leverage, Industry
Health Care 2.74 2.95 2.89 2.78 2.65

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 83,184 ÷ 45,167 = 1.84

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Danaher Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Danaher Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net earnings 6,433  3,646  3,008  2,651  2,492 
Less: Earnings from discontinued operations, net of income taxes 86  —  576  —  22 
Add: Income tax expense 1,251  849  873  642  469 
Add: Interest expense 238  275  109  157  163 
Earnings before interest and tax (EBIT) 7,836  4,770  3,414  3,450  3,102 
Solvency Ratio
Interest coverage1 32.92 17.35 31.44 21.92 19.06
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 16.41 10.10 7.09 4.48 3.47
Anthem Inc. 10.93 8.96 9.02 7.73 6.36
Bristol-Myers Squibb Co. 7.07 -3.84 8.58 33.61 27.18
CVS Health Corp. 5.16 4.36 3.96 1.54 8.79
Intuitive Surgical Inc.
Medtronic PLC 5.21 4.71 4.60 5.95 5.21
UnitedHealth Group Inc. 14.44 13.47 11.55 12.39 12.82
Interest Coverage, Sector
Health Care Equipment & Services 9.80 6.13 7.22 6.86 8.91
Interest Coverage, Industry
Health Care 13.43 7.42 9.11 8.47 10.15

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,836 ÷ 238 = 32.92

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Danaher Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Selected Financial Data (US$ in millions)
Net earnings 6,433  3,646  3,008  2,651  2,492 
Less: Earnings from discontinued operations, net of income taxes 86  —  576  —  22 
Add: Income tax expense 1,251  849  873  642  469 
Add: Interest expense 238  275  109  157  163 
Earnings before interest and tax (EBIT) 7,836  4,770  3,414  3,450  3,102 
Add: Operating lease expense 305  262  241  282  249 
Earnings before fixed charges and tax 8,141  5,032  3,655  3,732  3,351 
 
Interest expense 238  275  109  157  163 
Operating lease expense 305  262  241  282  249 
Mandatory convertible preferred stock dividends 164  136  68  —  — 
Mandatory convertible preferred stock dividends, tax adjustment1 44  36  18  —  — 
Mandatory convertible preferred stock dividends, after tax adjustment 208  172  87  —  — 
Fixed charges 751  709  436  439  412 
Solvency Ratio
Fixed charge coverage2 10.85 7.10 8.38 8.49 8.14
Benchmarks
Fixed Charge Coverage, Competitors3
Abbott Laboratories 10.21 6.68 5.14 4.48 3.47
Anthem Inc. 8.48 6.10 7.34 6.28 5.20
Bristol-Myers Squibb Co. 6.01 -3.08 7.10 20.07 17.24
CVS Health Corp. 3.03 2.75 2.56 1.27 3.35
Intuitive Surgical Inc. 93.66 58.48 79.65
Medtronic PLC 4.31 3.98 3.97 4.87 4.32
UnitedHealth Group Inc. 8.80 8.51 7.65 8.41 8.40
Fixed Charge Coverage, Sector
Health Care Equipment & Services 6.19 4.13 4.87 4.67 5.51
Fixed Charge Coverage, Industry
Health Care 9.33 5.42 6.68 6.31 7.25

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (164 × 21.00%) ÷ (1 − 21.00%) = 44

2 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,141 ÷ 751 = 10.85

3 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Danaher Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.