Is the business good?
How good a business is DHR?
Danaher Corporation earns 5.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.4%
Return on invested capital · cost of capital 9.0% · 3.6 points below what the capital costs: growth destroys value
- Operating margin
- 20%
Operating margin · Diagnostics & Research median 7.1% · 12 months to Q2 2026
- Cash conversion
- 1.36×
Cash conversion · 1.43× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 26% |
| FY2022 | 28% |
| FY2023 | 22% |
| FY2024 | 20% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q2 2026
- 59%
- Operating margin12 months to Q2 2026
- 20%
- Net margin12 months to Q2 2026
- 16%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 6.4%
- Revenue, trailing twelve months
- $25.1B
- Free cash flow, trailing twelve months
- $5.47B
- Net income, trailing twelve months
- $4.00B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Diagnostics & Research
Ranks #23 of 29 by Smart Score