Danaher Corporation (DHR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,078,000	5,864,000	5,995,000	2,586,000	6,035,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	6,798,000	8,274,000	8,389,000	8,140,000	7,402,000
Cash ratio		0.31	0.71	0.71	0.32	0.82

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,078,000K + $—K) ÷ $6,798,000K
= 0.31

The cash ratio of Danaher Corporation has experienced fluctuations over the past five years. As of December 31, 2020, the company had a cash ratio of 0.82, indicating that it had $0.82 in cash and cash equivalents for every $1 of current liabilities.

However, by December 31, 2021, the cash ratio had decreased to 0.32, suggesting a significant reduction in the company's ability to cover its short-term obligations with cash on hand. This could potentially signal liquidity challenges or increased reliance on other sources of funding.

In the subsequent years, the cash ratio improved slightly, reaching 0.71 as of both December 31, 2022, and December 31, 2023. This indicates a better ability to meet short-term obligations with available cash reserves.

By December 31, 2024, the cash ratio dropped to 0.31, falling back to a level similar to the one observed in 2021. This decrease may raise concerns about the company's liquidity position and its ability to weather potential financial challenges.

Overall, the fluctuating trend in Danaher Corporation's cash ratio over the five-year period highlights the importance of monitoring liquidity levels and managing cash flows effectively to ensure the company's financial stability.