Danaher (WBO:DHRC) ROCE % : 7.05% (As of Mar. 2024)

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What is Danaher ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Danaher's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.05%.

Danaher ROCE % Historical Data

The historical data trend for Danaher's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Danaher ROCE % Chart

Danaher Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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6.89

7.26

9.71

10.05

6.90

Danaher Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															8.30	7.59	7.65	2.74	7.05

Danaher ROCE % Calculation

Danaher's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	4887.61	/	( ( (79626.4 - 7919.216)	+	(77475.496 - 7587.258) )	/ 2 )
	=	4887.61	/	( (71707.184	+	69888.238)	/ 2 )
	=	4887.61	/	70797.711
	=	6.90 %

Danaher's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	4916.48	/	( ( (77475.496 - 7587.258)	+	(76729.84 - 7155.76) )	/ 2 )
	=	4916.48	/	( ( 69888.238	+	69574.08 )	/ 2 )
	=	4916.48	/	69731.159
	=	7.05 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Danaher (WBO:DHRC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Danaher (WBO:DHRC) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Danaher Corp (WBO:DHRC) » Definitions » ROCE %

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Address

2200 Pennsylvania Avenue, N.W., Suite 800W, Washington, DC, USA, 20037-1701

Website

https://www.danaher.com

In 1984, Danaher's founders transformed a real estate organization into an industrial-focused manufacturing company. Through a series of mergers, acquisitions, and divestitures, Danaher now focuses primarily on manufacturing scientific instruments and consumables in two segments--life sciences and diagnostics--after the late 2023 divesititure of its environmental and applied solutions group, Veralto.

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