Danaher Corporation (DHR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 16,707,000 | 19,086,000 | 22,168,000 | 21,193,000 | 21,517,000 |
| Total assets | US$ in thousands | 84,488,000 | 84,350,000 | 83,184,000 | 76,161,000 | 62,082,000 |
| Debt-to-assets ratio | 0.20 | 0.23 | 0.27 | 0.28 | 0.35 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $16,707,000K ÷ $84,488,000K
= 0.20
The debt-to-assets ratio of Danaher Corp. has shown a decreasing trend over the past five years, indicating a strengthening financial position in terms of debt management. The ratio decreased from 0.35 in 2019 to 0.22 in 2023.
A lower debt-to-assets ratio signifies that the company relies less on debt financing to fund its assets. This can be seen as a positive sign by investors and creditors as it indicates that the company has a lower risk of financial distress due to excessive debt levels.
The consistent decline in the debt-to-assets ratio suggests that Danaher Corp. has been effectively managing its debt levels relative to its total assets, which could potentially lead to improved financial stability and creditworthiness. However, it is important to note that a low debt-to-assets ratio does not necessarily mean the company does not use debt efficiently for growth opportunities.
Overall, the decreasing trend in the debt-to-assets ratio for Danaher Corp. reflects a prudent approach to debt management and financial risk, which may enhance the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023