Danaher Corporation (DHR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 77,542,000 | 84,488,000 | 84,350,000 | 83,184,000 | 76,161,000 |
| Total stockholders’ equity | US$ in thousands | 49,543,000 | 53,486,000 | 50,082,000 | 45,167,000 | 39,766,000 |
| Financial leverage ratio | 1.57 | 1.58 | 1.68 | 1.84 | 1.92 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $77,542,000K ÷ $49,543,000K
= 1.57
The financial leverage ratio of Danaher Corporation has shown a decreasing trend over the past five years, declining from 1.92 as of December 31, 2020, to 1.57 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which is generally viewed positively by investors and creditors. A lower financial leverage ratio suggests a lower financial risk and greater stability in the company's capital structure. However, it is important to assess the overall financial health of the company in conjunction with other financial ratios and factors to get a holistic view of its financial performance.
Peer comparison
Dec 31, 2024