Danaher Corporation (DHR)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	23,875,000	20,030,000	21,105,000	22,519,000	23,890,000	29,566,000	30,356,000	30,950,000	31,471,000	31,250,000	30,816,000	30,283,000	29,453,000	28,065,000	26,719,200	24,798,600	22,283,700	20,392,100	19,546,200	19,405,400
Total current assets	US$ in thousands	9,497,000	10,060,000	9,609,000	14,372,000	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
Total current liabilities	US$ in thousands	6,798,000	7,339,000	6,701,000	7,778,000	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
Working capital turnover		8.85	7.36	7.26	3.42	4.22	2.50	3.35	3.97	4.20	5.00	5.43	5.91	8.40	7.98	3.12	3.45	3.48	3.14	2.90	7.25

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $23,875,000K ÷ ($9,497,000K – $6,798,000K)
= 8.85

The working capital turnover ratio for Danaher Corporation has fluctuated over the past few years, indicating changes in the efficiency of the company in utilizing its working capital to generate sales.

In March 2020, the ratio was quite high at 7.25, suggesting that the company was able to generate sales 7.25 times using its working capital during that period. However, the ratio decreased significantly to 2.90 by June 2020, reflecting a potential decrease in sales relative to the working capital invested.

Subsequently, the ratio showed some improvement throughout 2020 and early 2021, ranging between 3.14 and 3.48. This indicated a better utilization of working capital to generate sales during those periods.

The ratio then spiked in the later part of 2021, reaching 8.40 by December 2021, which indicates a substantial increase in sales generated per unit of working capital. This trend continued into early 2022 but began to decline gradually over the following quarters, stabilizing around the 4-6 range.

By the end of 2024, the ratio was 8.85, signifying a relatively high efficiency in converting working capital into sales once again. Overall, the working capital turnover ratio for Danaher Corporation reflects varying levels of efficiency in managing working capital to generate sales over the analyzed period.