Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Danaher Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Danaher Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Danaher Corp., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
An examination of long-term investment activity ratios reveals consistent declines in asset utilization efficiency between 2021 and 2025. The ratios analyzed – net fixed asset turnover, total asset turnover, and equity turnover – all demonstrate downward trends, suggesting a diminishing ability to generate revenue from the company’s asset base and equity investment.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 7.77 in 2021 to 4.44 in 2025. This indicates a progressively less efficient use of net fixed assets to generate sales. The inclusion of operating lease right-of-use assets shows a similar pattern, declining from 6.10 to 3.64 over the same period. The rate of decline appears to be accelerating in the later years of the observed period.
- Total Asset Turnover
- Total asset turnover experienced a decrease from 0.35 in 2021 to 0.29 in 2025. While the decline is not monotonic, with a slight increase observed between 2022 and 2023, the overall trend is downward. This suggests the company is generating less revenue for each dollar of assets it holds.
- Equity Turnover
- Equity turnover decreased from 0.65 in 2021 to 0.47 in 2025. This indicates a reduced ability to generate sales revenue from shareholder equity. The ratio remained relatively stable between 2024 and 2025, suggesting the rate of decline may be slowing, but remains negative overall.
Collectively, these ratios point to a weakening relationship between investment in assets and the resulting revenue generation. Further investigation is warranted to understand the underlying causes of these declines, such as changes in industry dynamics, strategic shifts in asset allocation, or potential inefficiencies in operational processes.
Net Fixed Asset Turnover
Danaher Corp., net fixed asset turnover 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) | ||||||
| Sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent decline over the five-year period. Initially strong, the ratio decreased from 7.77 in 2021 to 4.44 in 2025. This trend is coupled with increasing net property, plant, and equipment, while sales have fluctuated.
- Net Fixed Asset Turnover
- The ratio began at 7.77 in 2021 and experienced a slight increase to 7.96 in 2022. This indicates that, in these years, the company was generating a relatively high level of sales for each dollar invested in fixed assets. However, a significant decrease to 5.25 occurred in 2023, followed by further declines to 4.78 in 2024 and 4.44 in 2025. This suggests a diminishing efficiency in utilizing fixed assets to generate revenue.
Concurrent with the declining turnover ratio, net property, plant, and equipment increased steadily from US$3,790 million in 2021 to US$5,531 million in 2025. This indicates that the company has been investing in fixed assets. However, the growth in sales has not kept pace with this investment, contributing to the observed decrease in the turnover ratio.
Sales figures show an initial increase from US$29,453 million in 2021 to US$31,471 million in 2022, mirroring the slight increase in the turnover ratio. A substantial decrease in sales to US$23,890 million occurred in 2023, coinciding with the most significant drop in the net fixed asset turnover. Sales remained relatively stable between 2023 and 2025, fluctuating between US$23,875 million and US$24,568 million. This stabilization at a lower sales level, combined with continued investment in fixed assets, further explains the continued decline in the ratio.
The observed trend suggests that the company is becoming less efficient in generating sales from its fixed asset base. Further investigation is warranted to understand the reasons behind the sales fluctuations and the effectiveness of the capital investments.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Danaher Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease ROU assets (classified in Other long-term assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
An examination of the financial information reveals a declining trend in net fixed asset turnover alongside fluctuations in sales and a consistent increase in net fixed assets. Sales experienced growth between 2021 and 2022, followed by a substantial decrease in 2023, with relatively stable figures in 2024 and a slight increase in 2025. Simultaneously, net fixed assets, inclusive of operating leases and right-of-use assets, have steadily risen throughout the observed period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased consistently from 6.10 in 2021 to 3.64 in 2025. This indicates a diminishing efficiency in generating sales revenue from the company’s fixed asset base. The most significant decline occurred between 2022 and 2023, coinciding with the largest drop in sales. While sales stabilized somewhat in 2024 and 2025, the continued increase in net fixed assets prevented a recovery in the turnover ratio.
The observed pattern suggests that the company is investing in fixed assets at a rate that is not currently being matched by corresponding sales growth. This could be due to a variety of factors, including strategic investments in long-term projects, increased capacity for future growth, or inefficiencies in asset utilization. Further investigation would be required to determine the underlying causes and assess the implications for future performance.
- Sales Trend
- Sales peaked at US$31,471 million in 2022 before falling to US$23,890 million in 2023. Subsequent years show limited recovery, with sales reaching US$24,568 million in 2025. This volatility in sales directly impacts the net fixed asset turnover ratio, as the numerator in the calculation is affected.
- Fixed Asset Investment
- Net fixed assets have increased each year, from US$4,831 million in 2021 to US$6,745 million in 2025. This consistent investment, coupled with the sales fluctuations, explains the downward trend in the net fixed asset turnover ratio. The increasing asset base requires a higher level of sales to maintain the same turnover ratio.
Total Asset Turnover
Danaher Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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
Total asset turnover = Sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before declining, suggesting shifts in the efficiency with which assets were utilized to generate sales.
- Overall Trend
- The ratio began at 0.35 in 2021, increased to 0.37 in 2022, then decreased to 0.28 in 2023. A slight recovery to 0.31 occurred in 2024, followed by a further decline to 0.29 in 2025. This indicates a general weakening in asset utilization efficiency over the period, despite a brief improvement.
- Initial Increase (2021-2022)
- The increase from 0.35 to 0.37 between 2021 and 2022 suggests improved efficiency in asset utilization. This could be attributed to increased sales relative to the asset base, or more effective asset management practices during that time. However, this improvement was not sustained.
- Significant Decline (2022-2023)
- The substantial decrease from 0.37 to 0.28 between 2022 and 2023 represents a notable reduction in asset turnover. This decline coincided with a decrease in sales from US$31,471 million to US$23,890 million, while total assets remained relatively stable. This suggests that the reduction in sales had a significant impact on the ratio.
- Recent Performance (2023-2025)
- The ratio experienced a modest increase from 0.28 to 0.31 in 2024, potentially indicating some recovery in asset utilization. However, this was followed by a further decrease to 0.29 in 2025. Total assets decreased in 2024, but increased again in 2025, while sales remained relatively flat. The ratio’s movement suggests that changes in asset levels are not fully translating into proportional changes in sales.
In summary, while there was a brief period of improvement, the overall trend indicates a decline in the efficiency of asset utilization. Further investigation into the factors driving these changes, particularly the relationship between sales and asset levels, would be beneficial.
Equity Turnover
Danaher Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total Danaher stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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
Equity turnover = Sales ÷ Total Danaher stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
An examination of the provided financial information reveals trends in equity turnover over a five-year period. Sales experienced an initial increase followed by a decline, while stockholders’ equity demonstrated a more consistent, albeit fluctuating, growth pattern. Consequently, the equity turnover ratio exhibited a decreasing trend overall.
- Sales Trend
- Sales increased from US$29,453 million in 2021 to US$31,471 million in 2022, representing a growth of approximately 6.8%. However, sales then decreased significantly to US$23,890 million in 2023 and remained relatively stable at US$23,875 million in 2024. A slight increase to US$24,568 million was observed in 2025, but sales remained below the 2021 and 2022 levels.
- Stockholders’ Equity Trend
- Total stockholders’ equity increased from US$45,167 million in 2021 to US$50,082 million in 2022, a rise of approximately 11.1%. Further growth was seen in 2023, reaching US$53,486 million. A decrease to US$49,543 million occurred in 2024, followed by a recovery to US$52,534 million in 2025. Overall, stockholders’ equity demonstrated an upward trend despite the fluctuation in 2024.
- Equity Turnover Analysis
- The equity turnover ratio, which measures how efficiently a company utilizes its equity to generate sales, decreased from 0.65 in 2021 to 0.63 in 2022. A more substantial decline was observed in 2023, with the ratio falling to 0.45. The ratio experienced a modest increase to 0.48 in 2024 and remained at 0.47 in 2025. This indicates a diminishing ability to generate sales relative to the amount of equity employed. The decrease in the ratio is likely attributable to the decline in sales combined with the relatively stable equity base.
The observed trend in equity turnover suggests a potential decrease in operational efficiency or a shift in business strategy. Further investigation into the underlying causes of the sales decline and the continued growth in equity would be beneficial to fully understand the implications of these changes.