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