Danaher Corporation (DHR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	9,669,000	12,216,000	12,522,000	11,501,000	9,809,000
Inventory	US$ in thousands	2,330,000	2,594,000	3,110,000	2,767,000	2,292,000
Inventory turnover		4.15	4.71	4.03	4.16	4.28

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,669,000K ÷ $2,330,000K
= 4.15

Danaher Corporation's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio, which measures how efficiently the company manages its inventory, decreased slightly from 4.28 in December 2020 to 4.16 in December 2021. It further declined to 4.03 by December 2022 before experiencing a significant increase to 4.71 by December 2023. However, in December 2024, the inventory turnover ratio decreased again to 4.15.

Overall, the inventory turnover ratio for Danaher Corporation has demonstrated relative stability over the years, with some variations that suggest changes in inventory management efficiency. The company may need to closely monitor its inventory levels and processes to ensure optimal utilization and alignment with business demands.