Danaher Corporation (DHR)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash 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
Receivables US$ in thousands 3,922,000 4,918,000 4,631,000 4,045,000 3,191,400
Total current liabilities US$ in thousands 8,274,000 8,389,000 8,140,000 7,402,000 4,932,000
Quick ratio 1.18 1.30 0.89 1.39 4.71

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,864,000K + $—K + $3,922,000K) ÷ $8,274,000K
= 1.18

The quick ratio of Danaher Corp. has exhibited fluctuations over the five-year period from 2019 to 2023. In 2019, the quick ratio was notably high at 4.86, indicating strong short-term liquidity and ability to cover immediate liabilities with liquid assets. However, this ratio dropped significantly to 1.55 in 2020, suggesting a decrease in the company's ability to cover its short-term obligations with its most liquid assets.

The quick ratio improved in 2021 to 1.09, which may raise concerns about the company's ability to meet its short-term liabilities without relying on inventory. However, the ratio bounced back in 2022 to 1.52, indicating a slight improvement in liquidity position.

By the end of 2023, Danaher Corp.'s quick ratio further improved to 1.37, reflecting a stronger ability to cover short-term obligations with quick assets. Overall, while there have been fluctuations in the quick ratio over the years, it shows a general trend of maintaining a level of liquidity that enables the company to meet its short-term obligations.


Peer comparison

Dec 31, 2023


See also:

Danaher Corporation Quick Ratio