Danaher - Payout Ratio (Earnings & FCF Based)
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Danaher (DHR) – Payout Ratio Analysis (FY 2021–2025)
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Dividends Paid ($M) | 742 | 818 | 821 | 768 | 878 |
| Net Income ($M) | 6,433 | 7,209 | 4,743 | 3,899 | 3,614 |
| Free Cash Flow ($M) | 7,064 | 7,367 | 5,781 | 5,296 | 5,260 |
| Earnings Payout Ratio | 11.5% | 11.3% | 17.3% | 19.7% | 24.3% |
| FCF Payout Ratio | 10.5% | 11.1% | 14.2% | 14.5% | 16.7% |
Key Takeaways
- Earnings-based payout ratio has more than doubled from ~11% in 2021–22 to ~24% in 2025, primarily because net income has compressed (–44% from 2022 peak) while dividends have continued to grow.
- FCF-based payout ratio has risen more modestly, from ~10–11% to ~17%, reflecting stronger cash generation resilience relative to accounting earnings.
- Despite the upward trend, both ratios remain well below 50%, indicating Danaher retains substantial capacity to fund M&A, R&D, and continued dividend growth from internally generated cash.
about 4 hours ago