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Danaher Financial Strength

: 7 (As of Jun. 2022)
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Danaher has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Danaher's Interest Coverage for the quarter that ended in Jun. 2022 was 43.24. Danaher's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.65. As of today, Danaher's Altman Z-Score is 5.14.


Competitive Comparison

For the Diagnostics & Research subindustry, Danaher's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Danaher Financial Strength Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Danaher's Financial Strength distribution charts can be found below:

* The bar in red indicates where Danaher's Financial Strength falls into.



Danaher Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Danaher's Interest Expense for the months ended in Jun. 2022 was $-51 Mil. Its Operating Income for the months ended in Jun. 2022 was $2,205 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $20,052 Mil.

Danaher's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2205/-51
=43.24

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Danaher's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10 + 20052) / 31004
=0.65

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Danaher has a Z-score of 5.14, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.14 is strong.

* 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.


Danaher  (NYSE:DHR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Danaher has the Financial Strength Rank of 7.


Danaher Financial Strength Related Terms

Thank you for viewing the detailed overview of Danaher's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Danaher Business Description

Danaher logo
Address
2200 Pennsylvania Avenue, North West, Suite 800W, Washington, DC, USA, 20037-1701
In 1984, Danaher's founders transformed a real estate organization into an industrial-focused manufacturing company. Through a series of mergers, acquisitions, and divestitures, including the Fortive separation in 2016, Danaher now focuses primarily on manufacturing scientific instruments and consumables in three segments: life sciences, diagnostics, and environmental and applied solutions. In late 2019, Danaher separated from its dental business through an initial public offering process, and in early 2020, it acquired GE's Biopharma business, now called Cytiva, which added to its life sciences segment.
Executives
Couchara Georgeann officer: SVP, Human Resources 2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Bouda Christopher officer: VP, Chief Accounting Officer 2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Sanders A Shane director 2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Honeycutt Jennifer officer: Executive Vice President 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Gutierrez-ramos Jose-carlos officer: SVP, Chief Scientific Officer C/O MOMENTA PHARMACEUTICALS, INC. 675 WEST KENDALL STREET CAMBRIDGE MA 02142
Mega Jessica L director 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Sabeti Pardis C director 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Mcgrew Matthew officer: EVP & Chief Financial Officer 2200 PENNSYLVANIA AVENUE, NW SUITE 800 W WASHINGTON DC 20010
Weidemanis Joakim officer: Executive Vice President 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Rales Steven M director, officer: Chairman 2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Stevens Raymond C director 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Blair Rainer officer: Executive Vice President 2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Hugin Robert J director C/O THE MEDICINES CO 8 CAMPUS DR PARSIPPANY NJ 07054
Ellis Brian W officer: Senior Vice President - GC 2200 PENNSYLVANIA AVENUE, NW WASHINGTON DC 20037
Rales Mitchell P director, officer: Chairman of Exec. Committee 11790 GLEN ROAD POTOMAC MD 20854

Danaher Headlines

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