Danaher's jump in cash and equivalents in Q3 2022 was primarily driven by **strong operating cash flows**. The company generated **$5,978 million** from operating activities during the nine-month period, which helped boost the cash balance. Although there were cash uses in investing (**$1,418 million**) and financing activities (**$1,664 million**), as well as a **$332 million** negative impact from exchange rate changes, these were largely offset by the operating strength, resulting in a **net increase of $2,564 million** and an ending balance of **$5,150 million** as of September 30, 2022.  **[0000313616-22-000223_dhr-20220930.htm:4]** 

Why did Cash and Equivalents jump in Q3 2022?

The available information reveals that the **Notes Payable and Current Portion of Long-Term Debt** increased from **$8 million as of December 31, 2021** to **$705 million as of September 30, 2022**; however, the documents do not provide a definitive explanation for this spike. It is suggested that the change could be related to factors such as **new short-term borrowings** or the **reclassification of portions of long-term debt to current liabilities**, but no explicit reasoning is provided in the available documents.  **[0000313616-22-000223_dhr-20220930.htm:1]** 

What explains the spike in Notes Payable in Q3 2022?

Danaher's long-term debt decreased in Q3 2022 partly due to net repayments of borrowings—**$265 million** for maturities longer than 90 days contributed to the reduction.  **[0000313616-22-000223_dhr-20220930.htm:4]**  However, the documents do not provide additional specific reasons for this change, aside from noting that the company remained in compliance with its debt covenants as of September 30, 2022  **[0000313616-22-000223_dhr-20220930.htm:21]**  and reporting the lower debt level compared to Q4 2021.  **[0000313616-22-000223_dhr-20220930.htm:20]** 

Why was Long-Term Debt lower in Q3 2022?

The drop in total assets in Q3 2022 was primarily driven by significant decreases in **goodwill** (from **$41,184 million** to **$38,251 million**) and **other intangible assets** (from **$22,843 million** to **$19,964 million**), along with a modest decrease in **trade accounts receivable** (from **$4,631 million** to **$4,409 million**). While there were increases in **cash and equivalents** (rising from **$2,586 million** to **$5,150 million**) and **inventories** (increasing from **$2,767 million** to **$3,236 million**), these changes could not offset the reductions in the other asset categories, leading to an overall decline in total assets from **$83,184 million** to **$81,030 million**.  **[0000313616-22-000223_dhr-20220930.htm:1]** 

What drove the drop in Total Assets in Q3 2022?

3872bddb0d3bcb51c0826cfff9a3850adbea96f3e1b0e7464ce2d3502ddeecd6

Danaher's sales declined sharply in Q4 2023 due to a combination of factors. The overall sales fell by approximately **10.2%** year-over-year, driven by weak performance across key segments. In the **Biotechnology Segment**, sales dropped sharply with a **20.9% decline**, primarily because of a **22.5% core revenue decrease**—largely due to lower bioprocessing revenue and weak demand in China. The **Diagnostics Segment** also experienced a decline of **8.4%**, impacted by lower respiratory-related revenue despite some strength in its base business. Additionally, challenges such as **geographic headwinds in China**, a **7% headwind from reduced COVID-19 revenue**, and persistent issues like **inventory destocking** in North America and Europe further contributed to the sales drop in Q4 2023.  **[DHR_3371132_2]** **[0000313616-24-000006_dhr-20240130xex991.htm:20]** **[DHR_3371132_3]** 

Why did Sales drop so sharply in Q4 2023?

In **Q4 2023**, the decline in operating profit was primarily driven by **lower total revenue**—with total sales falling by **10.2% year-over-year**—and **segment-specific challenges**. The **Biotechnology segment** saw operating profit drop by **40%** due to decreased core revenue linked to lower bioprocessing demand and inventory destocking, while the **Diagnostics segment** experienced a **23% decline** prompted by reduced respiratory and COVID-19-related revenues. Additionally, **operating margin compression** from lower volumes in key segments and costs related to productivity initiatives, as well as **geographic and market challenges** such as declining revenues in developed markets and mid-teens drops in high-growth markets like China, contributed significantly to the overall decline.  **[0000313616-24-000006_dhr-20240130xex991.htm:20]** **[0000313616-24-000006_dhr-20240130xex991.htm:18]** **[DHR_3371132_2]** 

What contributed to the decline in Operating Profit in Q4 2023?

The documents do not provide specific reasons for the surge in **Interest Income** in **Q4 2023**. However, they note that **Interest Income** increased from **$29 million** in **Q4 2022** to **$117 million** in **Q4 2023**; this significant increase could be attributed to various factors such as changes in **interest rates**, **investment strategies**, or **cash management practices**, though no exact cause is detailed in the documents.  **[0000313616-24-000006_dhr-20240130xex991.htm:18]** 

What drove the surge in Interest Income in Q4 2023?

The documents do not explicitly explain why Income Taxes were positive in Q4 2023. However, one document notes a change compared to previous periods and mentions several factors that likely contributed to the overall tax outcome, including the **geographic mix of earnings**, **discrete tax benefits** (such as changes in estimates for prior-year tax positions and excess tax benefits from stock-based compensation), **deferred tax adjustments**, and **realignment of businesses**. These factors helped drive the shift in reported tax amounts—even though the specific mechanism for the positive tax result of **USD 79.00 million** in Q4 2023 isn’t isolated in the documents.  **[0000313616-24-000052_dhr-20231231.htm:107]** **[0000313616-24-000052_dhr-20231231.htm:136]** **[0000313616-24-000052_dhr-20231231.htm:82]** **[0000313616-24-000052_dhr-20231231.htm:135]** 

Why were Income Taxes positive in Q4 2023?

The negative **(1.50 million)** average in Q2 2024 is due to the conversion of all outstanding Mandatory Convertible Preferred Stock (MCPS) into common stock. As of **April 17, 2023**, **8.6 million** MCPS shares were converted, and this conversion had a significant impact on the calculation of average basic common shares outstanding, leading to the reported negative figure.  **[0000313616-24-000186_dhr-20240628.htm:2]** **[0000313616-24-000186_dhr-20240628.htm:26]** **[0000313616-24-000188_dhr-20240723xex991.htm:7]** **[20240723PH67046:3]** 

Why are the average basic common shares outstanding negative in Q2 2024?

c89d3a44cb791912173c9def8ccc3579785faa0066e8f85fbcba15dbfcdc306a

The **net operating cash decreased by $1,355 million** in FY 2023 primarily because of a **significant decline in net earnings from continuing operations of $2,107 million** compared to FY 2022. This decrease was partially offset by improved working capital management, but was further compounded by a **higher cash usage in other working capital items** and a **decrease in noncash adjustments of $36 million**.  **[0000313616-24-000052_dhr-20231231.htm:110]** **[0000313616-24-000006_dhr-20240130xex991.htm:19]** **[0000313616-24-000052_dhr-20231231.htm:90]** 

Why did net operating cash drop in FY 2023?

In Q1 2024, the lower operating cash flow was driven primarily by a **$152 million decline in net earnings from continuing operations**, which was compounded by significant changes in working capital. Specifically, while improvements in trade-related items provided additional cash, increases in cash usage for prepaid expenses, other assets, deferred taxes, and accrued expenses offset these gains. Additionally, a reduction in stock-based compensation expense—from **$70 million** in Q1 2023 to **$60 million** in Q1 2024—also contributed to the overall change.  **[0000313616-24-000102_dhr-20240329.htm:40]** **[0000313616-24-000102_dhr-20240329.htm:3]** 

What drove the lower operating cash flow in Q1 2024?

The documents indicate that Danaher's Q4 2023 capital expenditures were **$113 million** higher compared to Q4 2022, but they do not provide specific reasons for this increase. They mention that such increases are typically influenced by factors like **investments in new facilities, upgrades to existing equipment, or expansion projects**; however, further detailed context regarding the exact causes for this higher expenditure in Q4 2023 is not available in the documents.  **[0000313616-24-000006_dhr-20240130xex991.htm:13]** 

What led to the higher capital expenditure in Q4 2023?

8c11909000fcce42a9abf2217c7245e9b5d4ff9bcd8d4fed93cd8ff2adb50a01

Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Operating Profit (USD, millions)

Other Income (Expense), Net (USD, millions)

Interest Expense (USD, millions)

Interest Income (USD, millions)

Earnings Before Income Taxes (USD, millions)

Income Taxes (USD, millions)

Net Earnings (USD, millions)

Basic Net Earnings per Common Share (USD per share)

Diluted Net Earnings per Common Share (USD per share)

Average Basic Common Shares Outstanding (millions)

Average Diluted Common Shares Outstanding (millions)

8a643cbf3f88ee771aaac29fea959a787f0264c1605d768d68ab6ecf42a7fec1

Cash and Equivalents (USD, millions)

Trade Accounts Receivable, less allowance for doubtful accounts (USD, millions)

Inventories - Finished Goods (USD, millions)

Inventories - Work in Process (USD, millions)

Inventories - Raw Materials (USD, millions)

Total Inventories (USD, millions)

Prepaid Expenses and Other Current Assets (USD, millions)

Total Current Assets (USD, millions)

Property, Plant and Equipment, Net (USD, millions)

Other Long-Term Assets (USD, millions)

Goodwill (USD, millions)

Other Intangible Assets, Net (USD, millions)

Total Assets (USD, millions)

Notes Payable and Current Portion of Long-Term Debt (USD, millions)

Trade Accounts Payable (USD, millions)

Accrued Expenses and Other Liabilities (USD, millions)

Total Current Liabilities (USD, millions)

Other Long-Term Liabilities (USD, millions)

Long-Term Debt (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

Retained Earnings (USD, millions)

Accumulated Other Comprehensive Income (Loss) (USD, millions)

Total Danaher Stockholders’ Equity (USD, millions)

Noncontrolling Interests (USD, millions)

Total Stockholders’ Equity (USD, millions)

Total Liabilities and Stockholders’ Equity (USD, millions)

522cf79d3eb131683e5f4b8dd7cafdd47ab90d4507250ee98836b3d2f7ceef8b

Net cash provided by operating activities [USD, millions]

Total cash used in investing activities [USD, millions]

Total cash (used in) provided by financing activities [USD, millions]

Payments for additions to property, plant and equipment [USD, millions]

Proceeds from sales of property, plant and equipment [USD, millions]

ba632719d721333efb4bc36fabe6389788b9d26198f3e045e295ed24b1e1afb4

43653b043f1b53fb11f1458aff12f71e5fa080730cb254f2e3a385a90a4e884f

d2a7651b93ccd3063c75afb903dfd18e8f991a3e79afc15e7cdadefd1838f6cd

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

38dd8120d31bbeaca5d77405bdf5462473b800edc5bfc7aa1af37a7764f78a85

Core sales growth (decline) for entire company (percentage)

Core sales growth (decline) for Biotechnology segment (percentage)

Core sales growth (decline) for Life Sciences segment (percentage)

Core sales growth for Diagnostics segment (percentage)

Price increases for the Biotechnology segment (percentage)

Price increases for the Life Sciences segment (percentage)

f120bbd6a34caad8ba6a899a5366b9d89edd6e224e6f5ec5dc83531cddb41ebe

Biotechnology

Life Sciences

Diagnostics

- Recurring Revenue

- Nonrecurring Revenue

Environmental & Applied Solutions

Dental

Test & Measurement

Environmental

Life Sciences & Diagnostics

Industrial Technologies

Total Revenue

199dcc03f0c27f93fc4e272cc0f92268282b603ae5137229313b4086850c96d4

North America

Western Europe

Other Developed Markets

High-Growth Markets

- United States

- China

- Germany

- Japan

- All Other Countries

b9ddf34c9ef3252f1db616866cc1b252ebc4b98d6b2d4f53f3763b703791f8cb

DANAHER CORP /DE/ (DHR)

Financials