Danaher Corporation (DHR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.22 | 0.22 | 0.21 | 0.23 | 0.23 | 0.25 | 0.26 | 0.27 | 0.29 | 0.26 | 0.27 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.27 | 0.19 | 0.18 |
| Debt-to-capital ratio | 0.24 | 0.27 | 0.26 | 0.26 | 0.28 | 0.28 | 0.30 | 0.32 | 0.33 | 0.35 | 0.32 | 0.33 | 0.35 | 0.36 | 0.38 | 0.42 | 0.42 | 0.34 | 0.24 | 0.23 |
| Debt-to-equity ratio | 0.31 | 0.37 | 0.35 | 0.35 | 0.38 | 0.39 | 0.43 | 0.47 | 0.49 | 0.54 | 0.48 | 0.50 | 0.53 | 0.57 | 0.62 | 0.73 | 0.71 | 0.51 | 0.32 | 0.30 |
| Financial leverage ratio | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | 1.84 | 1.90 | 1.82 | 1.87 | 1.92 | 1.92 | 1.97 | 2.22 | 2.05 | 1.89 | 1.66 | 1.64 |
The solvency ratios for Danaher Corp. reflect the company's ability to meet its long-term financial obligations and manage its debt levels.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Danaher Corp.'s debt-to-assets ratio has been relatively stable, ranging from 0.22 to 0.25 in the most recent quarters. This suggests that around 22% to 25% of the company's total assets are funded by debt.
2. Debt-to-capital ratio: This ratio assesses the extent to which a company's capital structure is reliant on debt. Danaher Corp.'s debt-to-capital ratio has hovered between 0.26 and 0.32, indicating that debt accounts for 26% to 32% of the company's total capital over the past quarters.
3. Debt-to-equity ratio: The debt-to-equity ratio shows the proportion of financing provided by creditors versus shareholders. Danaher Corp.'s debt-to-equity ratio has ranged from 0.34 to 0.47, varying from 34% to 47% of the company's equity funded by debt.
4. Financial leverage ratio: This ratio evaluates the company's financial risk by measuring the extent of debt used in the capital structure. Danaher Corp.'s financial leverage ratio has fluctuated between 1.58 and 1.80, indicating that the company has been using debt to magnify returns and potentially increase financial risk over the quarters analyzed.
Overall, Danaher Corp. maintains a moderate level of leverage, with a consistent but relatively low reliance on debt to finance its operations and investments. The company's solvency ratios suggest a balanced capital structure and a manageable debt burden, which is essential for long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Danaher Corp.'s interest coverage ratio has shown a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations through its operating income.
The interest coverage ratio increased significantly from Q1 2022 to Q3 2023, reflecting a substantial improvement in the company's ability to cover its interest expenses. However, it is important to note that the interest coverage ratio was not reported for Q4 2023.
The highest interest coverage ratio was reported in Q4 2023 at 122.05, demonstrating a strong ability to cover interest payments by operating income. The lowest interest coverage ratio during the period was 33.81 in Q1 2022, indicating a lower ability to cover interest expenses compared to other quarters.
Overall, the upward trend in the interest coverage ratio suggests that Danaher Corp. has been managing its interest obligations effectively and generating sufficient operating income to cover its interest expenses during the period analyzed. However, it is essential for the company to monitor and maintain this positive trend to ensure continued financial stability and meet its debt obligations effectively.