Danaher Corporation (DHR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,202,000 | 5,862,000 | 6,394,000 | 7,436,000 | 8,091,000 | 8,248,000 | 7,840,000 | 7,640,000 | 7,465,000 | 6,912,000 | 6,691,000 | 5,530,000 | 4,231,000 | 3,591,700 | 3,280,000 | 3,247,700 | 3,269,400 | 3,171,100 | 3,140,100 | 3,087,300 |
| Total assets | US$ in thousands | 84,488,000 | 87,734,000 | 84,902,000 | 85,040,000 | 84,350,000 | 81,030,000 | 81,806,000 | 83,392,000 | 83,184,000 | 82,498,000 | 78,027,000 | 75,426,000 | 76,161,000 | 72,890,700 | 71,268,400 | 68,930,300 | 62,082,000 | 61,531,100 | 53,322,000 | 51,774,400 |
| Operating ROA | 6.16% | 6.68% | 7.53% | 8.74% | 9.59% | 10.18% | 9.58% | 9.16% | 8.97% | 8.38% | 8.58% | 7.33% | 5.56% | 4.93% | 4.60% | 4.71% | 5.27% | 5.15% | 5.89% | 5.96% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,202,000K ÷ $84,488,000K
= 6.16%
Operating return on assets (ROA) measures a company's ability to generate operating profits from its assets. Looking at the trend in Danaher Corp.'s operating ROA over the last eight quarters, we can observe a gradual decline from 10.30% in Q4 2022 to 6.16% in Q4 2023. This downward trend may indicate challenges in efficiently utilizing the company's assets to generate operating profits.
The highest operating ROA was recorded in Q2 2023 at 8.87%, suggesting a temporary improvement in asset efficiency during that quarter. However, this was followed by a notable drop in Q3 and Q4 2023.
Comparing the operating ROA figures to historical data highlights a generally decreasing trend in the company's asset utilization efficiency. The decline in operating ROA could potentially be a concern for investors and stakeholders, signaling a need for Danaher Corp. to reassess its asset management strategies to improve profitability and operational efficiency.
Peer comparison
Dec 31, 2023