Danaher Corporation (DHR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,764,000 | 7,209,000 | 6,433,000 | 3,646,000 | 3,008,000 |
| Total stockholders’ equity | US$ in thousands | 53,486,000 | 50,082,000 | 45,167,000 | 39,766,000 | 30,271,000 |
| ROE | 8.91% | 14.39% | 14.24% | 9.17% | 9.94% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,764,000K ÷ $53,486,000K
= 8.91%
The Return on Equity (ROE) for Danaher Corp. has exhibited fluctuations over the past five years. In 2023, the ROE decreased to 8.87% from 14.18% in 2022, indicating a decline in the company's ability to generate profit from shareholders' equity. This decrease could be a source of concern for investors and stakeholders.
Comparing the ROE in 2023 to previous years, it is lower than the levels seen in 2021 and 2019 but slightly higher than the ROE in 2020. The ROE in 2023 is below the average ROE of 11.09% for the five-year period, suggesting a potential downturn in the company's profitability relative to its equity.
Investors may want to assess the drivers behind the decline in ROE to determine whether it is a temporary fluctuation or a more sustained trend. Factors such as changes in profitability, asset efficiency, or leverage ratios could influence the ROE. Further analysis of the company's financial statements and industry benchmarks may provide additional insights into the company's performance and potential future prospects.
Peer comparison
Dec 31, 2023