Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Danaher Corp., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 58.74% 60.21% 60.95% 55.98% 55.74%
Operating profit margin 21.77% 27.61% 25.35% 18.99% 18.25%
Net profit margin 19.94% 22.91% 21.84% 16.36% 16.80%
Return on Investment
Return on equity (ROE) 8.91% 14.39% 14.24% 9.17% 9.94%
Return on assets (ROA) 5.64% 8.55% 7.73% 4.79% 4.85%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Danaher Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Danaher Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Danaher Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Danaher Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Danaher Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Gross Profit Margin

Danaher Corp., gross profit margin 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)
Gross profit 14,034 18,949 17,952 12,475 9,984
Sales 23,890 31,471 29,453 22,284 17,911
Profitability Ratio
Gross profit margin1 58.74% 60.21% 60.95% 55.98% 55.74%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 50.28% 51.54% 52.21% 50.49% 52.46%
Cigna Group 12.37% 12.44% 12.41% 14.43% 15.57%
CVS Health Corp. 14.94% 16.62% 17.48% 18.01% 17.41%
Elevance Health Inc. 16.79% 16.79% 17.09% 19.71% 18.77%
Intuitive Surgical Inc. 66.39% 67.44% 69.32% 65.65% 69.45%
Medtronic PLC 65.67% 67.98% 65.19% 67.41% 70.04%
UnitedHealth Group Inc. 23.64% 24.09% 23.60% 25.62% 23.19%

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
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 14,034 ÷ 23,890 = 58.74%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Danaher Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Danaher Corp., operating profit margin 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)
Operating profit 5,202 8,688 7,465 4,231 3,269
Sales 23,890 31,471 29,453 22,284 17,911
Profitability Ratio
Operating profit margin1 21.77% 27.61% 25.35% 18.99% 18.25%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 16.15% 19.16% 19.56% 15.48% 14.21%
Cigna Group 4.40% 4.69% 4.60% 5.12% 5.31%
CVS Health Corp. 3.85% 2.41% 4.54% 5.19% 4.69%
Elevance Health Inc. 4.47% 4.94% 5.15% 4.97% 5.49%
Humana Inc. 3.81% 4.11% 3.80% 6.56% 4.96%
Intuitive Surgical Inc. 24.80% 25.35% 31.89% 24.09% 30.69%
Medtronic PLC 17.56% 18.15% 14.89% 16.57% 20.51%
UnitedHealth Group Inc. 8.80% 8.83% 8.40% 8.76% 8.19%
Operating Profit Margin, Sector
Health Care Equipment & Services 6.57% 6.79% 7.20% 7.31% 7.11%
Operating Profit Margin, Industry
Health Care 9.45% 13.29% 13.19% 10.52% 12.41%

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
Operating profit margin = 100 × Operating profit ÷ Sales
= 100 × 5,202 ÷ 23,890 = 21.77%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Danaher Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Net Profit Margin

Danaher Corp., net profit margin 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
Sales 23,890 31,471 29,453 22,284 17,911
Profitability Ratio
Net profit margin1 19.94% 22.91% 21.84% 16.36% 16.80%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 14.27% 15.88% 16.42% 12.99% 11.56%
Cigna Group 2.66% 3.72% 3.11% 5.31% 3.35%
CVS Health Corp. 2.34% 1.29% 2.72% 2.68% 2.59%
Elevance Health Inc. 3.52% 3.87% 4.46% 3.78% 4.66%
Humana Inc. 2.36% 3.03% 3.54% 4.43% 4.20%
Intuitive Surgical Inc. 25.24% 21.25% 29.85% 24.33% 30.80%
Medtronic PLC 12.03% 15.90% 11.97% 16.56% 15.16%
UnitedHealth Group Inc. 6.09% 6.25% 6.06% 6.03% 5.76%
Net Profit Margin, Sector
Health Care Equipment & Services 4.66% 5.09% 5.42% 5.46% 5.09%
Net Profit Margin, Industry
Health Care 8.11% 10.32% 10.91% 7.86% 10.19%

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
Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 4,764 ÷ 23,890 = 19.94%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Danaher Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Return on Equity (ROE)

Danaher Corp., ROE 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
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Profitability Ratio
ROE1 8.91% 14.39% 14.24% 9.17% 9.94%
Benchmarks
ROE, Competitors2
Abbott Laboratories 14.83% 18.90% 19.75% 13.71% 11.86%
Cigna Group 11.17% 14.86% 11.39% 16.81% 11.26%
CVS Health Corp. 10.91% 5.84% 10.54% 10.35% 10.39%
Elevance Health Inc. 15.23% 16.59% 16.93% 13.77% 15.15%
Humana Inc. 15.31% 18.33% 18.24% 24.53% 22.49%
Intuitive Surgical Inc. 13.51% 11.98% 14.32% 10.90% 16.69%
Medtronic PLC 7.30% 9.59% 7.01% 9.44% 9.25%
UnitedHealth Group Inc. 25.22% 25.87% 24.09% 23.52% 24.02%
ROE, Sector
Health Care Equipment & Services 14.25% 15.23% 14.96% 14.51% 13.87%
ROE, Industry
Health Care 18.01% 22.38% 22.87% 16.20% 21.01%

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
ROE = 100 × Net earnings ÷ Total Danaher stockholders’ equity
= 100 × 4,764 ÷ 53,486 = 8.91%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Danaher Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Return on Assets (ROA)

Danaher Corp., ROA 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
Total assets 84,488 84,350 83,184 76,161 62,082
Profitability Ratio
ROA1 5.64% 8.55% 7.73% 4.79% 4.85%
Benchmarks
ROA, Competitors2
Abbott Laboratories 7.82% 9.31% 9.40% 6.20% 5.43%
Cigna Group 3.38% 4.63% 3.46% 5.44% 3.28%
CVS Health Corp. 3.34% 1.82% 3.39% 3.11% 2.98%
Elevance Health Inc. 5.50% 5.86% 6.26% 5.28% 6.21%
Humana Inc. 5.29% 6.52% 6.61% 9.63% 9.31%
Intuitive Surgical Inc. 11.64% 10.19% 12.58% 9.50% 14.17%
Medtronic PLC 4.13% 5.54% 3.87% 5.28% 5.16%
UnitedHealth Group Inc. 8.18% 8.19% 8.15% 7.81% 7.96%
ROA, Sector
Health Care Equipment & Services 5.51% 5.87% 5.80% 5.54% 5.16%
ROA, Industry
Health Care 6.45% 8.39% 8.25% 5.52% 7.21%

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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,764 ÷ 84,488 = 5.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Danaher Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.