Danaher Corporation (DHR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.57 | 1.58 | 1.68 | 1.84 | 1.92 |
Danaher Corporation has consistently maintained a strong solvency position over the years, as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio. These ratios have remained at 0.00 from December 31, 2020, to December 31, 2024, suggesting that the company operates with minimal debt relative to its assets, capital, and equity.
Additionally, the financial leverage ratio for Danaher Corporation has shown a decreasing trend from 1.92 on December 31, 2020, to 1.57 on December 31, 2024. This implies that the company has been reducing its reliance on debt to finance its operations and investments over the years, which is a positive sign for its financial stability and ability to weather economic uncertainties.
Overall, the solvency ratios of Danaher Corporation reflect a prudent financial management strategy that emphasizes maintaining a solid financial position with minimal debt levels, contributing to the company's long-term stability and resilience.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 18.19 | 35.92 | 32.94 | 17.51 |
The interest coverage ratio for Danaher Corporation has shown a generally positive trend over the past few years. The ratio increased from 17.51 in December 2020 to 32.94 in December 2021, indicating an improvement in the company's ability to cover its interest expenses with operating earnings.
Further improvement was seen in December 2022, with the ratio rising to 35.92, showcasing the company's strengthened ability to service its debt obligations comfortably. However, there was a slight decline in December 2023, with the interest coverage ratio falling to 18.19.
Notably, in December 2024, the interest coverage ratio dropped to 0.00, which could raise concerns about the company's ability to meet its interest payments solely based on its operating earnings.
Overall, the trend in Danaher Corporation's interest coverage ratio indicates generally healthy financial performance, although the significant decline in 2024 warrants further investigation into the company's financial health and debt management strategies.