Danaher Corporation — Earnings Quality Grade F
DHR · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 58 days, change +4 days YoY
AR growth 10.6% exceeds revenue growth 2.9%
Revenue 2.9%, CFFO -4.1%. Cash follows revenue
Expense Quality
Inventory 6.8% vs COGS 3.9%. Normal
CapEx growth -17.0% vs revenue 2.9%. Normal
SG&A/Gross Profit = 56.7%. Normal
Gross margin 59.1%, change -0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.78. Profits backed by cash
FCF $5.3B, FCF/NI = 1.46
Accruals ratio = -3.4%. Low accruals
Cash $4.6B covers only 23% of debt $19.7B
Balance Sheet Health
Goodwill+Intangibles $61.0B = 116% of equity. Over 50%
Debt/EBITDA = 2.8x. Healthy
Other assets 5.5% vs revenue 2.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.57 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09