Danaher Corporation (DHR)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	27,514,000	29,446,000	30,174,000	30,811,000	31,383,000	31,114,000	30,643,000	30,083,000	29,239,000	27,833,000	26,462,000	24,514,000	21,983,000	20,189,400	19,394,400	19,311,400	19,872,000	20,367,100	20,209,200	20,054,200
Total current assets	US$ in thousands	13,937,000	21,205,000	17,461,000	16,532,000	15,883,000	14,250,000	13,229,000	12,670,000	11,648,000	10,776,000	15,392,000	14,012,000	13,802,000	12,541,200	12,343,800	11,142,600	25,596,000	20,353,700	11,603,700	10,080,400
Total current liabilities	US$ in thousands	8,274,000	9,367,000	8,404,000	8,730,000	8,389,000	8,002,000	7,556,000	7,547,000	8,140,000	7,257,000	6,825,000	6,824,000	7,402,000	6,038,400	5,599,900	8,465,600	4,932,000	5,934,000	5,008,000	4,632,800
Working capital turnover		4.86	2.49	3.33	3.95	4.19	4.98	5.40	5.87	8.33	7.91	3.09	3.41	3.43	3.10	2.88	7.21	0.96	1.41	3.06	3.68

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,514,000K ÷ ($13,937,000K – $8,274,000K)
= 4.86

The working capital turnover of Danaher Corp. has shown some fluctuations over the past eight quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In Q4 2023, the working capital turnover was 4.22, which was higher compared to the previous quarter at 2.50, indicating a significant improvement in the utilization of working capital during this period.

However, in Q3 2023, the ratio decreased to 2.50, suggesting a lower efficiency in the management of working capital to generate revenue. The ratio then increased in Q2 2023 to 3.35 and further improved in Q1 2023 to 3.97, indicating better utilization of working capital during these periods.

Comparing the recent results to the same periods in the previous year, Q4 2022 had a working capital turnover of 4.20, and Q3 2022 had a ratio of 5.00. It is worth noting that the working capital turnover has generally been declining since Q2 2022, where it reached a peak of 5.43, and then subsequently decreased to 5.00 in Q3 2022, followed by further declines in the subsequent quarters.

Overall, the trend in working capital turnover for Danaher Corp. shows some variability, with periodic improvements and declines. It is essential for the company to closely monitor and manage its working capital efficiently to ensure optimal performance and financial health in the long run.