Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Danaher Corp., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.34 0.39 0.49 0.53 0.72
Debt to equity (including operating lease liability) 0.37 0.41 0.52 0.56 0.74
Debt to capital 0.26 0.28 0.33 0.35 0.42
Debt to capital (including operating lease liability) 0.27 0.29 0.34 0.36 0.43
Debt to assets 0.22 0.23 0.27 0.28 0.35
Debt to assets (including operating lease liability) 0.23 0.25 0.28 0.29 0.36
Financial leverage 1.58 1.68 1.84 1.92 2.05
Coverage Ratios
Interest coverage 18.64 40.30 32.92 17.35 31.44
Fixed charge coverage 9.55 13.41 10.85 7.10 8.38

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Danaher Corp. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Danaher Corp. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Danaher Corp. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Debt to Equity

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
 
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Debt to equity1 0.34 0.39 0.49 0.53 0.72
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 5.73 3.67 4.98 6.58
Amgen Inc. 10.37 10.64 4.97 3.51 3.09
Bristol-Myers Squibb Co. 1.35 1.27 1.24 1.34 0.91
Eli Lilly & Co. 2.34 1.52 1.88 2.94 5.88
Gilead Sciences Inc. 1.09 1.19 1.27 1.73 1.09
Johnson & Johnson 0.43 0.52 0.46 0.56 0.47
Merck & Co. Inc. 0.93 0.67 0.87 1.26 1.02
Moderna Inc. 0.04 0.06 0.05 0.05 0.03
Pfizer Inc. 0.81 0.37 0.50 0.63 0.83
Regeneron Pharmaceuticals Inc. 0.10 0.12 0.14 0.24 0.06
Thermo Fisher Scientific Inc. 0.75 0.78 0.85 0.63 0.60
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.98 0.79 0.92 1.14 1.10
Debt to Equity, Industry
Health Care 0.81 0.72 0.78 0.90 0.91

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Total Danaher stockholders’ equity
= 18,402 ÷ 53,486 = 0.34

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 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
Current operating lease liabilities 180 199 207 189 158
Long-term operating lease liabilities 954 863 889 785 639
Total debt (including operating lease liability) 19,536 20,739 23,272 22,178 22,526
 
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Debt to equity (including operating lease liability)1 0.37 0.41 0.52 0.56 0.74
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 5.82 3.72 5.03 6.66
Amgen Inc. 10.50 10.83 5.07 3.55 3.15
Bristol-Myers Squibb Co. 1.41 1.31 1.27 1.37 0.92
Eli Lilly & Co. 2.44 1.59 1.96 3.06 6.11
Gilead Sciences Inc. 1.12 1.22 1.30 1.76 1.12
Johnson & Johnson 0.44 0.53 0.47 0.57 0.48
Merck & Co. Inc. 0.97 0.70 0.91 1.32 1.06
Moderna Inc. 0.09 0.06 0.06 0.09 0.12
Pfizer Inc. 0.84 0.41 0.54 0.65 0.85
Regeneron Pharmaceuticals Inc. 0.11 0.12 0.15 0.25 0.07
Thermo Fisher Scientific Inc. 0.78 0.82 0.89 0.65 0.62
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.01 0.82 0.95 1.17 1.13
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.86 0.77 0.84 0.96 0.97

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Danaher stockholders’ equity
= 19,536 ÷ 53,486 = 0.37

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 2021 to 2022 and from 2022 to 2023.

Debt to Capital

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Total capital 71,888 69,759 67,343 60,970 52,000
Solvency Ratio
Debt to capital1 0.26 0.28 0.33 0.35 0.42
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.91 0.83 0.78 0.76
Bristol-Myers Squibb Co. 0.57 0.56 0.55 0.57 0.48
Eli Lilly & Co. 0.70 0.60 0.65 0.75 0.85
Gilead Sciences Inc. 0.52 0.54 0.56 0.63 0.52
Johnson & Johnson 0.30 0.34 0.31 0.36 0.32
Merck & Co. Inc. 0.48 0.40 0.46 0.56 0.50
Moderna Inc. 0.04 0.05 0.05 0.05 0.03
Pfizer Inc. 0.45 0.27 0.33 0.39 0.45
Regeneron Pharmaceuticals Inc. 0.09 0.11 0.13 0.20 0.06
Thermo Fisher Scientific Inc. 0.43 0.44 0.46 0.39 0.37
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.50 0.44 0.48 0.53 0.52
Debt to Capital, Industry
Health Care 0.45 0.42 0.44 0.47 0.48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 18,402 ÷ 71,888 = 0.26

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 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
Current operating lease liabilities 180 199 207 189 158
Long-term operating lease liabilities 954 863 889 785 639
Total debt (including operating lease liability) 19,536 20,739 23,272 22,178 22,526
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Total capital (including operating lease liability) 73,022 70,821 68,439 61,944 52,797
Solvency Ratio
Debt to capital (including operating lease liability)1 0.27 0.29 0.34 0.36 0.43
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.92 0.84 0.78 0.76
Bristol-Myers Squibb Co. 0.58 0.57 0.56 0.58 0.48
Eli Lilly & Co. 0.71 0.61 0.66 0.75 0.86
Gilead Sciences Inc. 0.53 0.55 0.56 0.64 0.53
Johnson & Johnson 0.31 0.35 0.32 0.36 0.33
Merck & Co. Inc. 0.49 0.41 0.48 0.57 0.51
Moderna Inc. 0.08 0.06 0.06 0.08 0.10
Pfizer Inc. 0.46 0.29 0.35 0.39 0.46
Regeneron Pharmaceuticals Inc. 0.10 0.11 0.13 0.20 0.07
Thermo Fisher Scientific Inc. 0.44 0.45 0.47 0.40 0.38
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.50 0.45 0.49 0.54 0.53
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.46 0.44 0.46 0.49 0.49

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,536 ÷ 73,022 = 0.27

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 2021 to 2022 and from 2022 to 2023.

Debt to Assets

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
 
Total assets 84,488 84,350 83,184 76,161 62,082
Solvency Ratio
Debt to assets1 0.22 0.23 0.27 0.28 0.35
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.44 0.46 0.52 0.57 0.75
Amgen Inc. 0.67 0.60 0.54 0.52 0.50
Bristol-Myers Squibb Co. 0.42 0.41 0.41 0.43 0.36
Eli Lilly & Co. 0.39 0.33 0.35 0.36 0.39
Gilead Sciences Inc. 0.40 0.40 0.39 0.46 0.40
Johnson & Johnson 0.18 0.21 0.19 0.20 0.18
Merck & Co. Inc. 0.33 0.28 0.31 0.35 0.31
Moderna Inc. 0.03 0.04 0.03 0.02 0.02
Pfizer Inc. 0.32 0.18 0.21 0.26 0.31
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.35 0.35 0.37 0.31 0.30
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.34 0.30 0.32 0.36 0.36
Debt to Assets, Industry
Health Care 0.29 0.27 0.28 0.30 0.31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 18,402 ÷ 84,488 = 0.22

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 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Notes payable and current portion of long-term debt 1,695 591 8 11 212
Long-term debt, excluding current portion 16,707 19,086 22,168 21,193 21,517
Total debt 18,402 19,677 22,176 21,204 21,729
Current operating lease liabilities 180 199 207 189 158
Long-term operating lease liabilities 954 863 889 785 639
Total debt (including operating lease liability) 19,536 20,739 23,272 22,178 22,526
 
Total assets 84,488 84,350 83,184 76,161 62,082
Solvency Ratio
Debt to assets (including operating lease liability)1 0.23 0.25 0.28 0.29 0.36
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.45 0.46 0.53 0.58 0.75
Amgen Inc. 0.67 0.61 0.56 0.53 0.51
Bristol-Myers Squibb Co. 0.44 0.42 0.42 0.44 0.37
Eli Lilly & Co. 0.41 0.34 0.36 0.37 0.41
Gilead Sciences Inc. 0.41 0.41 0.40 0.47 0.41
Johnson & Johnson 0.18 0.22 0.19 0.21 0.18
Merck & Co. Inc. 0.34 0.29 0.33 0.37 0.32
Moderna Inc. 0.07 0.05 0.04 0.03 0.09
Pfizer Inc. 0.33 0.20 0.23 0.27 0.32
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.37 0.37 0.38 0.33 0.32
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.35 0.31 0.33 0.37 0.36
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.31 0.29 0.30 0.32 0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,536 ÷ 84,488 = 0.23

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 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Danaher Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets 84,488 84,350 83,184 76,161 62,082
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Financial leverage1 1.58 1.68 1.84 1.92 2.05
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 13.00 8.04 9.51 11.51
Amgen Inc. 15.59 17.79 9.13 6.69 6.17
Bristol-Myers Squibb Co. 3.23 3.12 3.04 3.13 2.52
Eli Lilly & Co. 5.94 4.65 5.44 8.27 15.07
Gilead Sciences Inc. 2.72 2.97 3.23 3.76 2.74
Johnson & Johnson 2.44 2.44 2.46 2.76 2.65
Merck & Co. Inc. 2.84 2.37 2.77 3.62 3.26
Moderna Inc. 1.33 1.35 1.74 2.86 1.35
Pfizer Inc. 2.54 2.06 2.35 2.44 2.65
Regeneron Pharmaceuticals Inc. 1.27 1.29 1.36 1.56 1.34
Thermo Fisher Scientific Inc. 2.11 2.21 2.33 2.00 1.97
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.86 2.61 2.85 3.20 3.10
Financial Leverage, Industry
Health Care 2.80 2.66 2.77 2.95 2.93

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 84,488 ÷ 53,486 = 1.58

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 2021 to 2022 and from 2022 to 2023.

Interest Coverage

Danaher Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Less: Earnings from discontinued operations, net of income taxes 543 86 576
Add: Income tax expense 823 1,083 1,251 849 873
Add: Interest expense 286 211 238 275 109
Earnings before interest and tax (EBIT) 5,330 8,503 7,836 4,770 3,414
Solvency Ratio
Interest coverage1 18.64 40.30 32.92 17.35 31.44
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 3.81 7.04 6.36 2.38 5.72
Amgen Inc. 3.73 6.22 6.60 7.44 8.09
Bristol-Myers Squibb Co. 8.24 7.26 7.07 -3.84 8.58
Eli Lilly & Co. 14.49 21.53 19.12 21.11 14.15
Gilead Sciences Inc. 8.27 7.22 9.27 2.70 6.19
Johnson & Johnson 20.51 79.71 125.46 83.07 55.49
Merck & Co. Inc. 2.65 18.09 18.22 11.58 13.84
Moderna Inc. -102.74 331.17 739.06 -74.31 -76.85
Pfizer Inc. 1.48 29.05 19.83 6.17 12.23
Regeneron Pharmaceuticals Inc. 58.52 82.80 163.75 67.97 81.43
Thermo Fisher Scientific Inc. 5.54 11.56 17.49 14.07 7.02
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.82 15.99 16.09 7.20 11.16
Interest Coverage, Industry
Health Care 6.75 12.97 12.85 7.67 8.84

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,330 ÷ 286 = 18.64

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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Fixed Charge Coverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Less: Earnings from discontinued operations, net of income taxes 543 86 576
Add: Income tax expense 823 1,083 1,251 849 873
Add: Interest expense 286 211 238 275 109
Earnings before interest and tax (EBIT) 5,330 8,503 7,836 4,770 3,414
Add: Operating lease expense 274 312 305 262 241
Earnings before fixed charges and tax 5,604 8,815 8,141 5,032 3,655
 
Interest expense 286 211 238 275 109
Operating lease expense 274 312 305 262 241
Mandatory convertible preferred stock dividends 21 106 164 136 68
Mandatory convertible preferred stock dividends, tax adjustment1 6 28 44 36 18
Mandatory convertible preferred stock dividends, after tax adjustment 27 134 208 172 87
Fixed charges 587 657 751 709 436
Solvency Ratio
Fixed charge coverage2 9.55 13.41 10.85 7.10 8.38
Benchmarks
Fixed Charge Coverage, Competitors3
AbbVie Inc. 3.59 6.54 5.90 2.28 5.42
Amgen Inc. 3.55 5.52 5.67 6.48 7.12
Bristol-Myers Squibb Co. 6.69 6.30 6.01 -3.08 7.10
Eli Lilly & Co. 10.98 15.17 13.33 15.06 10.18
Gilead Sciences Inc. 7.18 6.30 8.15 2.45 5.46
Johnson & Johnson 16.50 38.72 48.16 33.93 28.72
Merck & Co. Inc. 2.27 13.69 13.08 8.47 10.31
Moderna Inc. -30.29 125.35 317.31 -26.75 -20.79
Pfizer Inc. 1.34 18.79 14.22 4.98 9.88
Regeneron Pharmaceuticals Inc. 46.55 68.67 138.96 57.70 60.98
Thermo Fisher Scientific Inc. 4.61 8.12 12.19 10.30 5.61
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.90 12.28 12.38 5.83 8.93
Fixed Charge Coverage, Industry
Health Care 5.27 9.19 9.09 5.67 6.58

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Mandatory convertible preferred stock dividends, tax adjustment = (Mandatory convertible preferred stock dividends × Statutory federal income tax rate) ÷ (1 − Statutory federal income tax rate)
= (21 × 21.00%) ÷ (1 − 21.00%) = 6

2 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,604 ÷ 587 = 9.55

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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.