Danaher Corporation (DHR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.96 | 120.81 | 113.80 | 103.06 | 96.06 | 90.35 | 93.53 | 100.10 | 90.65 | 96.05 | 98.35 | 94.39 | 87.81 | 89.98 | 85.37 | 84.15 | 85.29 | 96.42 | 108.30 | 109.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 87.96 | 120.81 | 113.80 | 103.06 | 96.06 | 90.35 | 93.53 | 100.10 | 90.65 | 96.05 | 98.35 | 94.39 | 87.81 | 89.98 | 85.37 | 84.15 | 85.29 | 96.42 | 108.30 | 109.63 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.96 + — – —
= 87.96
The cash conversion cycle (CCC) of Danaher Corporation has shown some fluctuations over the past few years. The CCC represents the number of days it takes for a company to convert its resources into cash inflows.
From the data provided, we can observe the following trends:
- Danaher's CCC decreased steadily from 109.63 days on March 31, 2020, to 84.15 days on March 31, 2021, indicating improvement in managing its working capital efficiently.
- There was a slight increase in the CCC to 98.35 days on June 30, 2021, followed by fluctuations in the range of 85-100 days until March 31, 2023.
- However, the CCC increased notably to 113.8 days on June 30, 2024, and further rose to 120.81 days on September 30, 2024, before decreasing to 87.96 days on December 31, 2024.
Overall, the CCC of Danaher Corporation has shown variability, with some periods of improvement in efficiency in managing its cash conversion cycle, and other periods where it took longer to convert resources into cash. Further analysis would be needed to understand the specific drivers behind these fluctuations and to assess the overall effectiveness of Danaher's working capital management.
Peer comparison
Dec 31, 2024