Danaher Corporation (DHR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,873,000 | 8,503,000 | 7,922,000 | 4,770,000 | 3,989,000 |
| Interest expense | US$ in thousands | 286,000 | 204,000 | 238,000 | 275,000 | 108,000 |
| Interest coverage | 20.53 | 41.68 | 33.29 | 17.35 | 36.94 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,873,000K ÷ $286,000K
= 20.53
The interest coverage ratio for Danaher Corp. demonstrates the company's ability to meet its interest obligations with its operating income.
The trend in the interest coverage ratio over the past five years indicates a consistent improvement in the company's ability to cover its interest expenses. The ratio increased from 20.74 in 2020 to 32.89 in 2021 and further improved to 51.11 in 2022, suggesting a strengthening financial position and higher profitability relative to its interest obligations.
The data available shows that the interest coverage ratio was not provided for the years 2019 and 2023, which limits the complete picture. However, based on the available information, the company's ability to cover its interest expenses has been on an upward trajectory, indicating a positive trend in its financial health.
A higher interest coverage ratio signifies that Danaher Corp. has more earnings available to cover interest payments, indicating lower financial risk and a healthier balance sheet. This positive trend may suggest improved operational efficiency, effective cost management, and potentially higher profits.
Peer comparison
Dec 31, 2023