Danaher Corporation (DHR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 49,543,000 | 53,486,000 | 50,082,000 | 45,167,000 | 39,766,000 |
| ROE | 7.87% | 8.87% | 14.39% | 14.24% | 9.17% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,899,000K ÷ $49,543,000K
= 7.87%
The return on equity (ROE) of Danaher Corporation has shown fluctuations over the past five years. Starting at 9.17% on December 31, 2020, the ROE increased to 14.24% by December 31, 2021, and further to 14.39% by December 31, 2022, indicating an improving profitability and efficiency in generating earnings from shareholder equity.
However, there was a slight dip in ROE to 8.87% by December 31, 2023, which could be a cause for concern as it indicates a lower return on equity compared to the previous year. The trend continued with a decrease to 7.87% by December 31, 2024, highlighting a further decline in the company's ability to generate profits from the shareholders' equity.
Overall, although there have been periods of improvement in ROE, the recent downward trend suggests a potential challenge in sustaining or enhancing profitability relative to the level of equity investment. It would be important for Danaher Corporation to assess the factors contributing to these fluctuations and implement strategies to improve ROE in the future.
Peer comparison
Dec 31, 2024