DHR Financial Analysis

Analysis Date: 1/30/2025

Business Model

Danaher generates revenue through three main segments: Biotechnology, Life Sciences, and Diagnostics

Revenue Sources

• Biotechnology: $6.8B (28% of 2024 revenue)
• Life Sciences: $7.3B (31% of 2024 revenue)
• Diagnostics: $9.8B (41% of 2024 revenue)

Income Statement Analysis

• Revenue grew 2.0% with core growth of 1.0%
• Gross margin improved to 59.5% from 59.0%
• Operating margin expanded to 21.8% from 20.9%

Balance Sheet Analysis

• Cash position decreased significantly to $2.1B from $5.9B
• Total assets declined 8.2% to $77.5B
• Strong balance sheet despite decline in total equity

Cash Flow Analysis

• Strong operating cash flow growth of 27% year-over-year
• Free cash flow increased 29.5% to $1.5B

Capital Allocation

Danaher maintains disciplined capital allocation with focus on R&D investment and strategic acquisitions. Capital expenditures were $1.4B in 2024.

Management Commentary

Finished the year strong with better-than-anticipated core revenue in all segments

Danaher is better positioned than at any point in 40-year history

Expects core revenue growth of approximately 3% for full year 2025

Overall Sentiment: Positive and confident about future growth prospects

Recommendation

Rating: Buy

Reason for Rating: Strong execution, margin expansion and positive 2025 outlook support a buy rating

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/30/2025, 4:09:20 AM