Danaher Corporation (DHR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,497,000 | 13,937,000 | 15,883,000 | 11,648,000 | 13,802,000 |
| Total current liabilities | US$ in thousands | 6,798,000 | 8,274,000 | 8,389,000 | 8,140,000 | 7,402,000 |
| Current ratio | 1.40 | 1.68 | 1.89 | 1.43 | 1.86 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,497,000K ÷ $6,798,000K
= 1.40
The current ratio of Danaher Corporation has shown some fluctuations over the past five years. It stood at 1.86 as of December 31, 2020, indicating that the company had $1.86 in current assets for every $1 in current liabilities.
Subsequently, the ratio decreased to 1.43 by December 31, 2021, suggesting a slight decline in liquidity. However, the ratio improved significantly to 1.89 by December 31, 2022, indicating a healthier liquidity position compared to the previous year.
By December 31, 2023, the current ratio fell to 1.68, although it remained above 1, signaling that the company still had an adequate level of current assets to cover its current liabilities.
Most recently, as of December 31, 2024, the current ratio decreased to 1.40, potentially raising concerns about the company's ability to meet its short-term obligations with its current assets.
Overall, while the current ratio has fluctuated, it generally suggests that Danaher Corporation has maintained a reasonable level of liquidity over the analyzed period. However, stakeholders may need to monitor the ratio closely to ensure the company can effectively manage its short-term financial obligations.
Peer comparison
Dec 31, 2024