Danaher Corporation (DHR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,875,000 | 23,890,000 | 31,471,000 | 29,453,000 | 22,284,000 |
| Total current assets | US$ in thousands | 9,497,000 | 13,937,000 | 15,883,000 | 11,648,000 | 13,802,000 |
| Total current liabilities | US$ in thousands | 6,798,000 | 8,274,000 | 8,389,000 | 8,140,000 | 7,402,000 |
| Working capital turnover | 8.85 | 4.22 | 4.20 | 8.40 | 3.48 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,875,000K ÷ ($9,497,000K – $6,798,000K)
= 8.85
Danaher Corporation's working capital turnover has exhibited fluctuations over the past five years. The ratio has shown significant improvement from 3.48 in December 2020 to 8.85 in December 2024. This indicates that the company's efficiency in utilizing its working capital to generate revenue has increased substantially.
The spike in the ratio from 2020 to 2021 suggests a significant enhancement in the management of the company's working capital during that period. Although there was a slight decline in the ratio in 2022, Danaher Corporation was able to maintain a relatively strong working capital turnover compared to the base year.
Overall, the upward trend in the working capital turnover ratio reflects Danaher Corporation's ability to efficiently convert its working capital investments into sales revenue, which is a positive indicator of operational efficiency and effective asset management.
Peer comparison
Dec 31, 2024