Danaher Corp. (NYSE:DHR)

The analysis of the liquidity ratios over the observed periods reveals several notable trends and fluctuations. The current ratio demonstrates variability but generally remains above 1.3, indicating that the company maintains a level of current assets exceeding its current liabilities across most quarters. It peaks notably at 2.26 in mid-2021 and again in late 2023, suggesting periods of increased short-term asset availability or reduction in short-term liabilities. However, there are declines observed around mid-2024, where the ratio dips closer to 1.37-1.4, implying a contraction in liquidity relative to obligations.

The quick ratio follows a similar but more volatile pattern, ranging from lows below 1 (specifically 0.84 in late 2024) to highs approaching 1.76 in late 2023. This indicates that when excluding inventories, the company still retained a generally sufficient level of liquid assets to cover current liabilities, except during some quarters particularly mid to late 2024 when liquidity appears tighter. The quick ratio’s fluctuations mirror those of the current ratio but suggest that inventory composition and liquidity have meaningful impacts on overall short-term financial health.

The cash ratio exhibits the most pronounced variability and is frequently below 1, reaching as low as 0.24 in late 2025, indicating limited cash and cash equivalents relative to current liabilities. Peaks in this ratio occur in late 2023, where it reaches 1.31, suggesting temporary strengthens in cash reserves. However, throughout most periods, the cash ratio remains significantly lower than the other liquidity measures, revealing a reliance on receivables or other liquid assets rather than immediate cash to meet current obligations.

Current Ratio

Shows a generally healthy liquidity position above 1.3, with peaks around 2.26 and troughs around 1.37, indicating fluctuating but sufficient coverage of current liabilities by current assets.

Quick Ratio

Varies notably from 0.84 to 1.76, reflecting liquidity after excluding inventory; highlights some periods of tighter liquidity especially in mid to late 2024.

Cash Ratio

Fluctuates significantly between 0.24 and 1.31, often below 1, indicating limited cash reserves relative to short-term liabilities and a dependency on other current assets.

In summary, the company maintains a generally stable liquidity profile with adequate short-term assets to cover liabilities, though there are periods of compression in liquid asset availability as indicated by dips in quick and cash ratios. These trends suggest effective but variable management of current asset components, with caution warranted during quarters of reduced liquidity to ensure obligations are met without strain.

The analysis of the quarterly financial data reveals several notable trends in both current assets and current liabilities over the observed periods. The company’s current assets display fluctuations, with peaks and troughs that suggest variability in liquidity management or operational factors affecting asset levels. From April 2021 through the end of 2025, current assets initially rise from approximately $14 billion to a high near $21 billion, before experiencing a decline and then fluctuating around $9.6 billion to $11 billion in the latest quarters.

Current liabilities present a more stable pattern, with modest variation between $6.3 billion and $9.3 billion over the same span. Although current liabilities increase slightly at points, they do not exhibit the same degree of volatility as current assets. This relative stability in liabilities, contrasted with the more erratic asset movements, impacts the liquidity position as expressed by the current ratio.

The current ratio, an indicator of short-term financial health, fluctuates between approximately 1.37 and 2.26 during the timeframe. Higher values indicate stronger ability to cover short-term obligations; the ratio peaks in mid-2023 and then shows a downward trend towards 1.37 in the middle of 2024 before slightly recovering to around 1.62 in mid-2025. The ratio’s decline in certain periods may signal tightening liquidity conditions or increased short-term obligations relative to available liquid assets.

Current Assets

Exhibit variability with an early upward surge reaching above $21 billion by the third quarter of 2023, followed by a sharp decrease and fluctuating at lower levels through 2025.

Current Liabilities

Remained relatively stable with gradual increases and decreases, ranging between approximately $6.3 billion and $9.4 billion, showing less volatility compared to current assets.

Current Ratio

Varied over time, with peaks above 2.0 indicating strong liquidity, but experienced a general decline starting late 2023 into 2024, suggesting periods of relatively reduced short-term financial cushion.

In summary, the company’s liquidity position, as measured by the current ratio, demonstrates periods of strength but also phases of contraction. The fluctuations in current assets compared to the relatively stable current liabilities suggest that asset management or operational factors may be influencing the availability of liquid resources. Monitoring these trends will be important to ensure ongoing capacity to meet short-term obligations.

Total quick assets

The total quick assets exhibited considerable fluctuations over the analyzed periods. Initially, there was an increase from approximately 10,279 million to a peak of 11,425 million, followed by a sharp decline to 6,746 million. Subsequently, a recovery phase was observed, culminating in a significant peak of 16,478 million. However, after this peak, a marked downward trend ensued, culminating in a reduction to 5,283 million in the last reported period. The data show periods of sharp increases and decreases, indicating variability in liquid asset holdings or changes in cash and receivables management.

Current liabilities

Current liabilities demonstrated a more stable trend relative to quick assets, generally fluctuating between approximately 6,300 million and 9,300 million. There was a general upward trend reaching near 9,367 million, followed by periods of decline and relative stabilization in the latter periods. The fluctuations were moderate compared to quick assets, suggesting somewhat controlled management of short-term obligations, albeit with some variability.

Quick ratio

The quick ratio mirrored the fluctuating pattern of quick assets but displayed distinct periods of both strength and weakness. It started high at 1.51 and peaked at 1.76, indicating a comfortable liquidity position in some quarters. However, there were notable declines to below 1.0 in multiple quarters, reaching as low as 0.83 towards the end of the reporting periods. This indicates occasional periods where liquid assets might be insufficient to cover short-term liabilities promptly. The ratio's decline in the later periods highlights a weakening immediate liquidity position, which could be a matter for concern if the trend continues.

Summary insights

Overall, the liquidity position as gauged by total quick assets and the quick ratio demonstrates volatility, with periods of both strong and weak liquidity. While current liabilities appear relatively stable, the sharp decreases in quick assets and the quick ratio in recent periods could point to increased liquidity risk. Close attention to the management of liquid assets and short-term liabilities is advisable to ensure the company maintains adequate capacity to meet its short-term obligations.

Cash Assets

The total cash assets exhibited significant fluctuations over the analyzed periods. Initially, cash assets were relatively high, peaking at 7,322 million USD in July 2021 before experiencing a marked decline to approximately 2,586 million USD by December 2021. Subsequently, a gradual recovery took place throughout 2022 and into early 2023, reaching a notable peak of 12,277 million USD in September 2023. However, a sharp drop followed in the last quarter of 2023 to 5,864 million USD. From early 2024 onward, cash assets again declined steadily, reaching the lowest recorded figure of 1,528 million USD by September 2025. Overall, the trend indicates a pattern of volatility with periods of accumulation and depletion of cash reserves.

Current Liabilities

Current liabilities generally rose from approximately 6,824 million USD in April 2021 to a peak near 9,367 million USD in September 2023. Following this peak, liabilities began to decrease gradually in the subsequent quarters, descending to 6,324 million USD by September 2025. The data reflects a rise in short-term obligations over the initial periods with a moderation and reduction trend in the last two years. The steady increase before the peak may suggest growing operational or financial commitments, with the later reduction potentially indicating improved liability management or repayment strategies.

Cash Ratio

The cash ratio showed considerable variability over the timeframe, ranging from a high of 1.31 in September 2023 to a low of 0.24 in September 2025. The ratio initially decreased sharply from 0.93 in April 2021 down to around 0.32 by December 2021, indicating a declining proportion of cash assets relative to current liabilities. This was followed by a gradual improvement throughout 2022 and early 2023, peaking above 1.0, implying enhanced liquidity during this period. However, from late 2023 onwards, there was a general downward trend, with the cash ratio falling below 0.5 and ending near 0.24 by September 2025. The declining ratio in the later periods suggests a weakening in cash liquidity relative to immediate financial obligations.

Summary

The financial metrics indicate cyclical liquidity management characterized by fluctuations in both cash assets and current liabilities, leading to corresponding variability in the cash ratio. The company experienced periods of cash accumulation followed by sharp reductions, while current liabilities rose and later decreased more steadily. The cash ratio movements reflect these trends, capturing the shifts in the company's ability to cover short-term liabilities using cash on hand. Overall, the data suggests episodes of liquidity tightening especially after peaks in cash reserves, pointing to either investment activities, debt repayments, or other operational cash uses affecting the available cash buffer against current liabilities.