Danaher Corporation (DHR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	3,899,000	4,743,000	7,209,000	6,433,000	3,646,000
Total assets	US$ in thousands	77,542,000	84,488,000	84,350,000	83,184,000	76,161,000
ROA		5.03%	5.61%	8.55%	7.73%	4.79%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $3,899,000K ÷ $77,542,000K
= 5.03%

To analyze Danaher Corporation's return on assets (ROA) over the period from December 31, 2020, to December 31, 2024, we see a fluctuating trend in the ROA ratio.

The ROA ratio measures the company's efficiency in generating profit from its assets. In 2020, Danaher Corporation had an ROA of 4.79%, which increased to 7.73% in 2021, indicating a significant improvement in utilizing its assets to generate profits.

Subsequently, in 2022, the ROA ratio further improved to 8.55%, reaching its peak during this period. This suggests that Danaher Corporation was able to generate higher returns relative to its total assets, reflecting strong asset management and profitability.

In 2023, there was a slight decline in the ROA to 5.61%, indicating a decrease in the company's ability to generate profits from its assets compared to the previous year. Moreover, in 2024, the ROA decreased further to 5.03%, showing a continued decline in profitability relative to the company's asset base.

Overall, the fluctuation in Danaher Corporation's ROA suggests variations in the efficiency of asset utilization and profitability over the period, impacting the company's overall financial performance. Further analysis of the company's operational and financial strategies may be needed to understand the drivers behind these changes and to evaluate the company's future performance.