Danaher Corporation (DHR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,570,000 | 4,907,000 | 5,313,000 | 5,604,000 | 6,132,000 | 7,055,000 | 7,613,000 | 8,379,000 | 8,689,000 | 8,652,000 | 8,506,000 | 8,297,000 | 8,262,000 | 7,653,000 | 7,097,000 | 5,925,000 | 4,495,000 | 3,900,900 | 3,385,500 | 3,384,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 7.21% | 9.57% | 10.65% | 10.49% | 11.46% | 13.46% | 14.72% | 16.28% | 17.35% | 18.41% | 18.26% | 17.90% | 18.29% | 17.61% | 16.60% | 14.66% | 11.30% | 10.28% | 9.34% | 10.90% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,570,000K ÷ ($—K + $49,543,000K)
= 7.21%
Danaher Corporation's Return on Total Capital has shown fluctuating performance over the reported periods. The ratio started at 10.90% as of March 31, 2020, and generally increased to reach a peak of 18.41% as of September 30, 2022. However, the ratio began to decline thereafter, dropping to 7.21% by December 31, 2024.
The company's Return on Total Capital indicates how efficiently it is utilizing its total capital to generate profits. The increasing trend observed until September 30, 2022, suggests improving operational efficiency and profitability. However, the subsequent decline in the ratio could indicate potential challenges in maintaining or further improving profitability.
Investors and stakeholders may monitor these fluctuations closely to assess the company's overall financial health and its ability to effectively generate returns on the capital invested.
Peer comparison
Dec 31, 2024