Danaher Corporation (DHR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,202,000 | 7,536,000 | 7,465,000 | 4,231,000 | 3,269,000 |
| Total assets | US$ in thousands | 84,488,000 | 84,350,000 | 83,184,000 | 76,161,000 | 62,082,000 |
| Operating ROA | 6.16% | 8.93% | 8.97% | 5.56% | 5.27% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,202,000K ÷ $84,488,000K
= 6.16%
Danaher Corp.'s operating return on assets (operating ROA) has shown some fluctuations over the past five years. In 2023, the operating ROA is at 6.16%, a decrease from the previous year where it was 10.30%. This indicates a decline in the company's ability to generate operating income relative to its total assets from 2022 to 2023.
Comparing the operating ROA to 2021, there was a slight increase from 8.97% to 10.30% in 2022, signifying improved efficiency in generating operating income. However, the 2023 figure of 6.16% is still lower than the 2022 and 2021 levels.
Looking further back, there was a notable jump in operating ROA from 5.56% in 2020 to 8.97% in 2021, indicating improving operational efficiency. The 2020 figure of 5.56% was higher than that of 2019, at 5.27%.
Overall, Danaher Corp.'s operating ROA has displayed variability in recent years, with fluctuations indicating changes in the company's operational efficiency in generating income relative to its asset base. It would be important to further investigate the factors contributing to these fluctuations to understand the company's financial performance better.
Peer comparison
Dec 31, 2023