Danaher Corporation (DHR)

Debt-to-equity 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-equity ratio		0.31	0.38	0.49	0.53	0.71

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $16,707,000K ÷ $53,486,000K
= 0.31

The debt-to-equity ratio of Danaher Corp. has shown a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.72 in 2019 to 0.34 in 2023. A lower debt-to-equity ratio signifies that the company is relying less on debt financing and has a higher proportion of equity in its capital structure.

The decreasing trend suggests that Danaher has been successful in reducing its debt levels relative to its equity, which can enhance the company's financial stability and lower its financial risk. This could be perceived positively by investors and creditors as it demonstrates prudent financial management and a stronger ability to cover its debt obligations with available equity.

Overall, the declining debt-to-equity ratio of Danaher Corp. indicates an improving financial health and a more conservative approach to capital structure management, which may contribute to the company's long-term sustainability and growth prospects.