Danaher Corporation (DHR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	53,486,000	50,082,000	45,167,000	39,766,000	30,271,000
Debt-to-capital ratio		0.24	0.28	0.33	0.35	0.42

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $16,707,000K ÷ ($16,707,000K + $53,486,000K)
= 0.24

The debt-to-capital ratio of Danaher Corp. has shown a declining trend over the past five years, decreasing from 0.42 in 2019 to 0.26 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments in relation to its capital structure.

A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it suggests lower financial risk and a more stable financial position for the company.

Danaher Corp.'s decreasing debt-to-capital ratio may imply that the company has been able to generate sufficient internal funds or equity financing to support its operations and growth, reducing the need for external debt. This could indicate effective financial management and strategic decision-making by the company's management team.

Overall, the declining trend in Danaher Corp.'s debt-to-capital ratio reflects a favorable financial position and a prudent approach to managing its capital structure over the past few years.