Danaher Corporation (DHR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 13,937,000 | 15,883,000 | 11,648,000 | 13,802,000 | 25,596,000 |
| Total current liabilities | US$ in thousands | 8,274,000 | 8,389,000 | 8,140,000 | 7,402,000 | 4,932,000 |
| Current ratio | 1.68 | 1.89 | 1.43 | 1.86 | 5.19 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $13,937,000K ÷ $8,274,000K
= 1.68
The current ratio of Danaher Corp. has exhibited fluctuations over the past five years. In 2019, the current ratio was significantly high at 5.19, indicating a strong ability to meet short-term obligations with current assets. However, from 2020 to 2022, the current ratio decreased gradually, signaling a potential decrease in liquidity and ability to cover current liabilities with current assets.
In 2023, the current ratio improved to 1.68, but it still remains below the levels observed in 2019 and 2022. This suggests that the company may have experienced challenges in managing its short-term liquidity in recent years. It is crucial for Danaher Corp. to closely monitor its current assets and liabilities to ensure sufficient liquidity to meet its short-term obligations and maintain financial health.
Peer comparison
Dec 31, 2023