Danaher Corporation (DHR)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,863,000 | 5,202,000 | 8,688,000 | 7,465,000 | 4,231,000 |
| Revenue | US$ in thousands | 23,875,000 | 23,890,000 | 31,471,000 | 29,453,000 | 22,284,000 |
| Operating profit margin | 20.37% | 21.77% | 27.61% | 25.35% | 18.99% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,863,000K ÷ $23,875,000K
= 20.37%
Danaher Corporation's operating profit margin has shown a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024. The margin increased from 18.99% in 2020 to 25.35% in 2021, signaling improved efficiency in generating operating profits relative to revenue. In 2022, the operating profit margin saw a further increase to 27.61%, indicating the company's effective cost management and revenue generation strategies.
However, in 2023, there was a slight decline in the operating profit margin to 21.77%, which may be attributed to various factors such as changes in costs, pricing strategies, or overall economic conditions. By the end of the period in 2024, the operating profit margin decreased slightly to 20.37%, potentially indicating some challenges in maintaining the previous high levels of profitability.
Overall, Danaher Corporation has demonstrated a strong ability to generate operating profits relative to its revenue, although there have been some fluctuations in the margin over the years. Monitoring and addressing the factors impacting the operating profit margin will be crucial for sustaining profitability and performance in the future.
Peer comparison
Dec 31, 2024