Danaher Corporation (DHR)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,899,000 | 3,892,000 | 4,203,000 | 4,402,000 | 4,764,000 | 5,917,000 | 6,339,000 | 6,891,000 | 7,125,000 | 6,640,000 | 6,206,000 | 6,292,000 | 6,269,000 | 5,721,400 | 5,446,400 | 4,594,400 | 3,509,400 | 3,585,100 | 3,391,500 | 3,208,100 |
| Total stockholders’ equity | US$ in thousands | 49,543,000 | 51,299,000 | 49,897,000 | 53,442,000 | 53,486,000 | 52,407,000 | 51,716,000 | 51,478,000 | 50,082,000 | 46,985,000 | 46,594,000 | 46,356,000 | 45,167,000 | 43,451,000 | 42,756,000 | 40,419,000 | 39,766,000 | 37,961,000 | 36,261,700 | 31,055,100 |
| ROE | 7.87% | 7.59% | 8.42% | 8.24% | 8.91% | 11.29% | 12.26% | 13.39% | 14.23% | 14.13% | 13.32% | 13.57% | 13.88% | 13.17% | 12.74% | 11.37% | 8.83% | 9.44% | 9.35% | 10.33% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,899,000K ÷ $49,543,000K
= 7.87%
Over the past five years, Danaher Corporation's return on equity (ROE) has fluctuated within a range of 7.59% to 14.23%. The company experienced a gradual increase in ROE from around 8.83% at the end of 2020 to a peak of 14.23% at the end of 2022, indicating an improvement in its profitability and efficiency in generating returns for shareholders.
However, from the beginning of 2023, the ROE trend started to decline, dropping to 7.87% by the end of 2024. This decrease in ROE suggests potential challenges in maintaining or enhancing profitability levels, which could be attributed to various factors such as changes in operational efficiency, financial leverage, or overall business performance.
Analyzing the trend, it is essential for stakeholders to closely monitor the factors impacting Danaher's ROE, assess the company's strategies for maintaining sustainable profitability, and consider any potential risks or opportunities that could influence future financial performance.
Peer comparison
Dec 31, 2024