Danaher Corporation (DHR)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 13,937,000 | 21,205,000 | 17,461,000 | 16,532,000 | 15,883,000 | 14,250,000 | 13,229,000 | 12,670,000 | 11,648,000 | 10,776,000 | 15,392,000 | 14,012,000 | 13,802,000 | 12,541,200 | 12,343,800 | 11,142,600 | 25,596,000 | 20,353,700 | 11,603,700 | 10,080,400 |
| Total current liabilities | US$ in thousands | 8,274,000 | 9,367,000 | 8,404,000 | 8,730,000 | 8,389,000 | 8,002,000 | 7,556,000 | 7,547,000 | 8,140,000 | 7,257,000 | 6,825,000 | 6,824,000 | 7,402,000 | 6,038,400 | 5,599,900 | 8,465,600 | 4,932,000 | 5,934,000 | 5,008,000 | 4,632,800 |
| Current ratio | 1.68 | 2.26 | 2.08 | 1.89 | 1.89 | 1.78 | 1.75 | 1.68 | 1.43 | 1.48 | 2.26 | 2.05 | 1.86 | 2.08 | 2.20 | 1.32 | 5.19 | 3.43 | 2.32 | 2.18 |
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 last eight quarters, ranging from a low of 1.68 in Q4 2022 to a high of 2.26 in Q3 2023. In general, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting good liquidity.
The current ratio saw a significant jump in Q3 2023 to 2.26, indicating a substantial increase in current assets relative to current liabilities. This spike may be attributed to factors such as increased cash reserves, higher accounts receivable, or a reduction in current liabilities.
However, it is worth noting that the current ratio decreased in the following quarter, Q4 2023, to 1.68. A ratio below 2 may signal a potential liquidity risk, as the company may have a lower ability to cover its short-term obligations. Further analysis of the components of current assets and liabilities would be necessary to understand the drivers behind this decrease.
Overall, the varying current ratios highlight the importance of monitoring liquidity levels regularly to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023