Danaher Corporation (DHR)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	5,873,000	7,052,000	7,555,000	8,216,000	8,503,000	8,387,000	7,863,000	7,934,000	7,922,000	7,395,000	7,045,000	6,153,000	4,770,000	4,657,300	4,406,200	4,005,000	3,989,000	3,358,500	3,353,200	3,333,700
Interest expense (ttm)	US$ in thousands	286,000	272,000	241,000	225,000	211,000	203,000	223,000	234,000	238,000	254,000	270,000	286,000	275,000	246,800	192,800	134,500	108,000	77,600	94,900	118,400
Interest coverage		20.53	25.93	31.35	36.52	40.30	41.32	35.26	33.91	33.29	29.11	26.09	21.51	17.35	18.87	22.85	29.78	36.94	43.28	35.33	28.16

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,873,000K ÷ $286,000K
= 20.53

The interest coverage ratio measures a company's ability to cover its interest expense with its operating income. A higher ratio indicates a better ability to meet interest obligations.

In the case of Danaher Corp., the interest coverage ratio has been consistently improving over the quarters, showcasing a positive trend in the company's ability to meet its interest payments.

The interest coverage ratio stood at 33.81 in Q1 2022 and has steadily increased to 122.05 in Q3 2023, indicating a significant enhancement in Danaher's capacity to cover its interest expenses. This upward trend reflects an improving financial health and profitability of the company.

Overall, the increasing interest coverage ratio for Danaher Corp. suggests a strong financial position and the ability to comfortably fulfill its interest payment obligations. It indicates that the company has ample earnings to cover its interest costs, which is a positive sign for investors and lenders.