Danaher Corporation (DHR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,864,000 | 5,995,000 | 2,586,000 | 6,035,000 | 19,912,300 |
| Short-term investments | US$ in thousands | — | — | — | 176,000 | 110,800 |
| Total current liabilities | US$ in thousands | 8,274,000 | 8,389,000 | 8,140,000 | 7,402,000 | 4,932,000 |
| Cash ratio | 0.71 | 0.71 | 0.32 | 0.84 | 4.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,864,000K
+ $—K)
÷ $8,274,000K
= 0.71
The cash ratio of Danaher Corp. has displayed fluctuations over the past five years. The ratio decreased from 4.21 in 2019 to 1.01 in 2020, indicating a significant reduction in the company's ability to cover its short-term obligations with its cash reserves alone. However, in 2021, the ratio dropped sharply to 0.52, signaling a further decline in liquidity and a potential strain on the company's ability to meet immediate financial obligations.
Subsequently, the cash ratio showed a slight improvement in 2022, rising to 0.94, but still remained below the ideal level of 1. This suggests that Danaher Corp. continued to face challenges in maintaining sufficient cash resources relative to its short-term liabilities. The most recent data for 2023 shows a further decline in the cash ratio to 0.90, indicating ongoing pressure on the company's liquidity position.
Overall, the trend in Danaher Corp.'s cash ratio reflects a fluctuating pattern, with periods of lower liquidity followed by partial recoveries. The company may need to carefully manage its cash and short-term assets to ensure it can meet its financial obligations effectively in the coming periods.
Peer comparison
Dec 31, 2023