Danaher Corporation (DHR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 5,202,000 | 7,580,000 | 7,839,000 | 4,815,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 49,543,000 | 53,486,000 | 50,082,000 | 45,167,000 | 39,766,000 |
| Return on total capital | 0.00% | 9.73% | 15.14% | 17.36% | 12.11% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $49,543,000K)
= 0.00%
The return on total capital for Danaher Corporation has exhibited some fluctuations over the period from December 31, 2020, to December 31, 2024.
- In December 31, 2020, the return on total capital stood at 12.11%, indicating the company generated a return of 12.11% on every dollar of capital employed.
- By the end of December 31, 2021, the return on total capital had increased to 17.36%, reflecting a significant improvement in the company's capital efficiency.
- Subsequently, the return on total capital decreased to 15.14% by December 31, 2022, suggesting a slight decline in the company's ability to generate returns relative to the capital invested.
- However, there was a more significant decline by December 31, 2023, with the return on total capital dropping to 9.73%. This decrease may indicate potential challenges faced by the company in efficiently utilizing its total capital.
- Notably, by the end of December 31, 2024, the return on total capital was recorded at 0.00%. This indicates that the company did not generate any return relative to the total capital employed, which raises concerns about the company's capital efficiency during that period.
In conclusion, the fluctuation in Danaher Corporation's return on total capital over the years shows varying levels of efficiency in utilizing its total capital to generate returns, with a significant decline observed in the later years. Further analysis of the company's operational performance and capital allocation strategies may be necessary to understand the factors contributing to these fluctuations.
Peer comparison
Dec 31, 2024