Danaher Corporation (DHR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 77,542,000 | 84,488,000 | 84,350,000 | 83,184,000 | 76,161,000 |
| Operating ROA | 6.27% | 6.16% | 10.30% | 8.97% | 5.56% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,863,000K ÷ $77,542,000K
= 6.27%
Danaher Corporation's operating return on assets (Operating ROA) has shown a general upward trend over the past five years. As of December 31, 2020, the Operating ROA was 5.56%, which increased steadily to 8.97% by December 31, 2021, and further to 10.30% by December 31, 2022, indicating an improvement in the efficiency of generating operating profits from its assets.
However, there was a slight decrease in the Operating ROA to 6.16% by December 31, 2023, followed by a marginal increase to 6.27% by December 31, 2024. This fluctuation suggests some variability in Danaher's ability to generate operating profits relative to its asset base in those specific years.
Overall, the increasing trend in the Operating ROA up to 2022 reflects improved operational efficiency and asset utilization, although the subsequent fluctuations highlight potential challenges or changes in the company's operating performance. Further analysis of the company's operational strategies and asset management practices could provide more insights into the factors driving these fluctuations in Operating ROA.
Peer comparison
Dec 31, 2024