Danaher Corporation (DHR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 84,488,000 | 84,350,000 | 83,184,000 | 76,161,000 | 62,082,000 |
| Total stockholders’ equity | US$ in thousands | 53,486,000 | 50,082,000 | 45,167,000 | 39,766,000 | 30,271,000 |
| Financial leverage ratio | 1.58 | 1.68 | 1.84 | 1.92 | 2.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $84,488,000K ÷ $53,486,000K
= 1.58
The financial leverage ratio for Danaher Corp. has exhibited a declining trend over the past five years, decreasing from 2.05 in 2019 to 1.58 in 2023. A lower financial leverage ratio indicates that the company relies less on debt financing and has a stronger equity position to support its operations and investments.
This downward trend suggests that Danaher Corp. has been gradually reducing its reliance on debt to finance its activities, potentially enhancing its financial stability and reducing its risk exposure. However, it is essential to consider the optimal balance between debt and equity financing based on the company's capital structure strategy and overall financial objectives.
Overall, the decreasing trend in Danaher Corp.'s financial leverage ratio reflects a positive shift towards a more conservative leverage position, which may contribute to the company's long-term financial health and sustainability.
Peer comparison
Dec 31, 2023