Stock Analysis on Net
Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Danaher Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 41,608 39,752 41,184 35,420 22,713
Patents and technology 15,175 13,508 14,377 12,526 2,713
Customer relationships, trade names and other intangibles 10,131 10,183 9,547 9,355 6,367
Finite-lived intangibles, gross carrying amount 25,306 23,691 23,924 21,881 9,080
Accumulated amortization (8,135) (7,236) (6,029) (4,774) (3,546)
Finite-lived intangibles, net 17,171 16,455 17,895 17,107 5,534
Trademarks and trade names 3,575 3,845 4,948 4,175 4,216
Indefinite-lived intangibles 3,575 3,845 4,948 4,175 4,216
Intangibles 20,746 20,300 22,843 21,282 9,750
Goodwill and other intangible assets 62,354 60,052 64,027 56,702 32,462

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Danaher Corp. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Intangibles Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Danaher Corp. intangibles decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Danaher Corp. goodwill and other intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Adjustments to Financial Statements: Removal of Goodwill

Danaher Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 84,488 84,350 83,184 76,161 62,082
Less: Goodwill 41,608 39,752 41,184 35,420 22,713
Total assets (adjusted) 42,880 44,598 42,000 40,741 39,369
Adjustment to Total Danaher Stockholders’ Equity
Total Danaher stockholders’ equity (as reported) 53,486 50,082 45,167 39,766 30,271
Less: Goodwill 41,608 39,752 41,184 35,420 22,713
Total Danaher stockholders’ equity (adjusted) 11,878 10,330 3,983 4,346 7,558

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Danaher Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Danaher Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.28 0.37 0.35 0.29 0.29
Adjusted total asset turnover 0.56 0.71 0.70 0.55 0.45
Financial Leverage
Reported financial leverage 1.58 1.68 1.84 1.92 2.05
Adjusted financial leverage 3.61 4.32 10.54 9.37 5.21
Return on Equity (ROE)
Reported ROE 8.91% 14.39% 14.24% 9.17% 9.94%
Adjusted ROE 40.11% 69.79% 161.51% 83.89% 39.80%
Return on Assets (ROA)
Reported ROA 5.64% 8.55% 7.73% 4.79% 4.85%
Adjusted ROA 11.11% 16.16% 15.32% 8.95% 7.64%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Danaher Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Danaher Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Danaher Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales 23,890 31,471 29,453 22,284 17,911
Total assets 84,488 84,350 83,184 76,161 62,082
Activity Ratio
Total asset turnover1 0.28 0.37 0.35 0.29 0.29
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales 23,890 31,471 29,453 22,284 17,911
Adjusted total assets 42,880 44,598 42,000 40,741 39,369
Activity Ratio
Adjusted total asset turnover2 0.56 0.71 0.70 0.55 0.45

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales ÷ Total assets
= 23,890 ÷ 84,488 = 0.28

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 23,890 ÷ 42,880 = 0.56

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Danaher Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 84,488 84,350 83,184 76,161 62,082
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Solvency Ratio
Financial leverage1 1.58 1.68 1.84 1.92 2.05
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 42,880 44,598 42,000 40,741 39,369
Adjusted total Danaher stockholders’ equity 11,878 10,330 3,983 4,346 7,558
Solvency Ratio
Adjusted financial leverage2 3.61 4.32 10.54 9.37 5.21

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 84,488 ÷ 53,486 = 1.58

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Danaher stockholders’ equity
= 42,880 ÷ 11,878 = 3.61

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Danaher Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Total Danaher stockholders’ equity 53,486 50,082 45,167 39,766 30,271
Profitability Ratio
ROE1 8.91% 14.39% 14.24% 9.17% 9.94%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Adjusted total Danaher stockholders’ equity 11,878 10,330 3,983 4,346 7,558
Profitability Ratio
Adjusted ROE2 40.11% 69.79% 161.51% 83.89% 39.80%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net earnings ÷ Total Danaher stockholders’ equity
= 100 × 4,764 ÷ 53,486 = 8.91%

2 Adjusted ROE = 100 × Net earnings ÷ Adjusted total Danaher stockholders’ equity
= 100 × 4,764 ÷ 11,878 = 40.11%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Danaher Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Total assets 84,488 84,350 83,184 76,161 62,082
Profitability Ratio
ROA1 5.64% 8.55% 7.73% 4.79% 4.85%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 4,764 7,209 6,433 3,646 3,008
Adjusted total assets 42,880 44,598 42,000 40,741 39,369
Profitability Ratio
Adjusted ROA2 11.11% 16.16% 15.32% 8.95% 7.64%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,764 ÷ 84,488 = 5.64%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,764 ÷ 42,880 = 11.11%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.