Danaher
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | DHR | Checked against | |
|---|---|---|---|
| Owner earnings | $3.21bn | positive | ✓ |
| Return on equity | 6.9% | median 11.7% | ✗ |
| Debt to equity | 0.35x | median 0.79x | ✓ |
| Operating margin | 19.1% | median 15.0% | ✓ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 3/4
| Measure | DHR | Checked against | |
|---|---|---|---|
| Return on capital employed | 6.6% | median 10.1% | ✗ |
| Cash conversion | 1.78x | median 1.78x | ✓ |
| Operating margin | 19.1% | median 15.0% | ✓ |
| Debt to equity | 0.35x | median 0.79x | ✓ |
Passes 3 of 4. To be clear: Terry Smith has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/3
| Measure | DHR | Checked against | |
|---|---|---|---|
| Return on capital employed | 6.6% | median 10.1% | ✗ |
| Return on equity | 6.9% | median 11.7% | ✗ |
| Operating margin | 19.1% | median 15.0% | ✓ |
Passes 1 of 3. To be clear: Charlie Munger has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 2/4
| Measure | DHR | Checked against | |
|---|---|---|---|
| Return on equity | 6.9% | median 11.7% | ✗ |
| Debt to equity | 0.35x | median 0.79x | ✓ |
| Cash conversion | 1.78x | median 1.78x | ✓ |
| Return on equity, sustained | 2 of 10 | 8 of 10 above median | ✗ |
Passes 2 of 4. To be clear: Chuck Akre has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/4
| Measure | DHR | Checked against | |
|---|---|---|---|
| Operating margin | 19.1% | median 15.0% | ✓ |
| Net margin | 14.7% | median 10.2% | ✓ |
| Return on capital employed | 6.6% | median 10.1% | ✗ |
| Operating margin, held or improving | 19.1% | 10-yr median 19.0% | ✓ |
Passes 3 of 4. To be clear: Philip Fisher has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | DHR | Checked against | |
|---|---|---|---|
| Current ratio | 1.87x | median 1.25x | ✓ |
| Debt to equity | 0.35x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/3
| Measure | DHR | Checked against | |
|---|---|---|---|
| Current ratio | 1.87x | 2.00x published | ✗ |
| Long-term debt to working capital | 3.10x | 1.00x published | ✗ |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 3. To be clear: Benjamin Graham has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | DHR | Checked against | |
|---|---|---|---|
| Return on capital employed | 6.6% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 2/2
| Measure | DHR | Checked against | |
|---|---|---|---|
| Debt to equity | 0.35x | median 0.79x | ✓ |
| Net margin | 14.7% | median 10.2% | ✓ |
Passes 2 of 2. To be clear: Peter Lynch has never said anything about Danaher. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 24.3% | whyThe figure most screeners publish. |
| Operating cash flow | 13.7% | whyBefore capital spending. |
| Free cash flow | 16.7% | whyAfter maintaining the business. |
Spread between highest and lowest: 10.6 percentage points. Same filings, different denominators.
Coverage rating 61 / 100 — Adequate. ? Peer standing 36/50Direction 10/30Stability 16/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 16.7% |
| 2024-12-31 | 14.5% |
| 2023-12-31 | 14.2% |
| 2022-12-31 | 11.1% |
| 2021-12-31 | 10.4% |
| 2020-12-31 | 11.4% |
Coverage has deteriorated three years running, 11.1% to 16.7%. Still covered, but moving the wrong way.
72% of the 74 industrials here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $1.23 ÷ diluted EPS $5.05
- Operating cash flow — dividends paid $878m ÷ operating cash flow $6,416m
- Free cash flow — dividends paid $878m ÷ (operating cash flow $6,416m − capex $1,156m)
Where the figures came from
- 10-K filed 2026-02-24 · accession 0000313616-26-000062
All public at sec.gov — you should not have to take our word for it.
Caveats on this company
- DPS derived from dividends paid ($1.23); no per-share tag filed
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Danaher files. The monthly letter carries what filed, what moved, and one finding computed across every company here.