Long-term Debt and Solvency Analysis Quarterly Data

Difficulty: Beginner


Ratios (Summary)

Danaher Corp., debt and solvency ratios (quarterly data)

 
Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Dec 31, 2014 Sep 26, 2014 Jun 27, 2014 Mar 28, 2014 Dec 31, 2013 Sep 27, 2013 Jun 28, 2013 Mar 29, 2013
Debt to equity 0.39 0.40 0.43 0.47 0.50 0.53 0.36 0.59 0.51 0.54 0.65 0.13 0.14 0.15 0.13 0.13 0.15 0.16 0.16 0.20 0.23
Debt to capital 0.28 0.29 0.30 0.32 0.33 0.35 0.26 0.37 0.34 0.35 0.39 0.12 0.12 0.13 0.11 0.11 0.13 0.14 0.14 0.17 0.19
Interest coverage 19.99 19.06 18.34 16.31 15.04 15.16 14.42 15.68 19.13 21.42 26.89 31.16 29.86 29.38 28.83 27.15 25.46 25.44
Source: Based on data from Danaher Corp. Quarterly and Annual Reports
Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Danaher Corp.'s debt-to-equity ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Danaher Corp.'s debt-to-capital ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Danaher Corp.'s interest coverage ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Debt to Equity

Danaher Corp., debt to equity calculation (quarterly data)

 
Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Dec 31, 2014 Sep 26, 2014 Jun 27, 2014 Mar 28, 2014 Dec 31, 2013 Sep 27, 2013 Jun 28, 2013 Mar 29, 2013
Selected Financial Data (USD $ in thousands)
Notes payable and current portion of long-term debt 98,700  194,700  182,200  169,500  2,221,000  2,594,800  809,100  2,644,500  197,000  845,200  3,489,300  110,100  123,700  71,900  71,400  49,000  64,100  62,300  56,500  53,900  67,000 
Long-term debt, excluding current portion 10,410,700  10,327,400  10,726,800  11,422,500  9,729,300  9,674,200  7,503,100  12,007,700  12,194,700  12,025,200  11,522,700  3,052,700  3,053,800  3,401,500  2,964,700  3,020,000  3,422,900  3,436,700  3,445,500  4,100,900  4,404,300 
Total debt 10,509,400  10,522,100  10,909,000  11,592,000  11,950,300  12,269,000  8,312,200  14,652,200  12,391,700  12,870,400  15,012,000  3,162,800  3,177,500  3,473,400  3,036,100  3,069,000  3,487,000  3,499,000  3,502,000  4,154,800  4,471,300 
Total Danaher stockholders' equity 27,189,900  26,358,200  25,375,400  24,590,000  23,785,800  23,002,800  23,191,600  25,045,100  24,504,700  23,690,300  23,112,700  24,101,200  23,321,000  23,378,100  23,740,700  23,720,500  22,961,700  22,385,300  21,304,600  20,296,100  19,681,100 
Ratio
Debt to equity1 0.39 0.40 0.43 0.47 0.50 0.53 0.36 0.59 0.51 0.54 0.65 0.13 0.14 0.15 0.13 0.13 0.15 0.16 0.16 0.20 0.23
Source: Based on data from Danaher Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Debt to equity = Total debt ÷ Total Danaher stockholders' equity
= 10,509,400 ÷ 27,189,900 = 0.39

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Danaher Corp.'s debt-to-equity ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Debt to Capital

Danaher Corp., debt to capital calculation (quarterly data)

 
Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Dec 31, 2014 Sep 26, 2014 Jun 27, 2014 Mar 28, 2014 Dec 31, 2013 Sep 27, 2013 Jun 28, 2013 Mar 29, 2013
Selected Financial Data (USD $ in thousands)
Notes payable and current portion of long-term debt 98,700  194,700  182,200  169,500  2,221,000  2,594,800  809,100  2,644,500  197,000  845,200  3,489,300  110,100  123,700  71,900  71,400  49,000  64,100  62,300  56,500  53,900  67,000 
Long-term debt, excluding current portion 10,410,700  10,327,400  10,726,800  11,422,500  9,729,300  9,674,200  7,503,100  12,007,700  12,194,700  12,025,200  11,522,700  3,052,700  3,053,800  3,401,500  2,964,700  3,020,000  3,422,900  3,436,700  3,445,500  4,100,900  4,404,300 
Total debt 10,509,400  10,522,100  10,909,000  11,592,000  11,950,300  12,269,000  8,312,200  14,652,200  12,391,700  12,870,400  15,012,000  3,162,800  3,177,500  3,473,400  3,036,100  3,069,000  3,487,000  3,499,000  3,502,000  4,154,800  4,471,300 
Total Danaher stockholders' equity 27,189,900  26,358,200  25,375,400  24,590,000  23,785,800  23,002,800  23,191,600  25,045,100  24,504,700  23,690,300  23,112,700  24,101,200  23,321,000  23,378,100  23,740,700  23,720,500  22,961,700  22,385,300  21,304,600  20,296,100  19,681,100 
Total capital 37,699,300  36,880,300  36,284,400  36,182,000  35,736,100  35,271,800  31,503,800  39,697,300  36,896,400  36,560,700  38,124,700  27,264,000  26,498,500  26,851,500  26,776,800  26,789,500  26,448,700  25,884,300  24,806,600  24,450,900  24,152,400 
Ratio
Debt to capital1 0.28 0.29 0.30 0.32 0.33 0.35 0.26 0.37 0.34 0.35 0.39 0.12 0.12 0.13 0.11 0.11 0.13 0.14 0.14 0.17 0.19
Source: Based on data from Danaher Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 10,509,400 ÷ 37,699,300 = 0.28

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Danaher Corp.'s debt-to-capital ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Interest Coverage

Danaher Corp., interest coverage calculation (quarterly data)

 
Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Dec 31, 2014 Sep 26, 2014 Jun 27, 2014 Mar 28, 2014 Dec 31, 2013 Sep 27, 2013 Jun 28, 2013 Mar 29, 2013
Selected Financial Data (USD $ in thousands)
Net earnings 566,600  856,600  572,100  557,300  506,100  747,000  391,600  656,700  758,400  688,600  1,403,300  695,700  569,800  661,700  680,600  676,400  579,700  789,300  597,000  616,800  691,900 
Less: Earnings (loss) from discontinued operations, net of income taxes 22,300  (11,000) 238,700  172,600  (46,600) 813,300  (19,800) 11,800 
Add: Income tax expense 146,500  122,400  157,700  87,500  101,400  (50,600) 74,100  236,600  197,800  184,500  178,500  192,200  170,100  302,700  196,500  202,600  181,600  269,700  181,800  189,000  230,500 
Add: Interest expense 39,100  41,800  39,900  40,700  40,300  32,300  43,700  55,500  52,900  59,200  45,300  29,000  29,300  26,500  30,500  33,200  32,500  32,300  35,000  39,400  39,200 
Earnings before interest and tax (EBIT) 752,200  1,020,800  769,700  685,500  625,500  728,700  520,400  710,100  836,500  978,900  813,800  936,700  757,400  990,900  907,600  912,200  793,800  1,091,300  813,800  845,200  961,600 
Ratio
Interest coverage1 19.99 19.06 18.34 16.31 15.04 15.16 14.42 15.68 19.13 21.42 26.89 31.16 29.86 29.38 28.83 27.15 25.46 25.44
Source: Based on data from Danaher Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Interest coverage = (EBITQ1 2018 + EBITQ4 2017 + EBITQ3 2017 + EBITQ2 2017) ÷ (Interest expenseQ1 2018 + Interest expenseQ4 2017 + Interest expenseQ3 2017 + Interest expenseQ2 2017)
= (752,200 + 1,020,800 + 769,700 + 685,500) ÷ (39,100 + 41,800 + 39,900 + 40,700) = 19.99

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 Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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