DHR Profit Margins
Gross, Operating & Net Margin Analysis for Danaher Corp
Margin Quality
Strong
Current Profit Margins
Gross Margin
59.1%
$14.52B gross profit
Operating Margin
19.1%
$4.69B operating income
Net Profit Margin
14.7%
$3.61B net income
5-Year Margin Trends
What Margins Indicate About DHR
Business Quality
High gross margins above 50% suggest Danaher Corp has strong pricing power and competitive advantages that allow premium pricing.
Operational Efficiency
Expanding operating margins show Danaher Corp is improving operational leverage and cost management.
Profitability
Net margins in the 5-15% range are solid and typical for many profitable businesses.
Investment Implications
Mixed margin trends require deeper analysis to understand underlying business dynamics and sustainability.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze DHR Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is DHR's profit margin?
DHR (Danaher Corp) has a net profit margin of 14.7%, meaning the company keeps $0.14710192119830673 in profit for every dollar of revenue. This represents a change from the previous year's net margin of 16.3%.
What is DHR's gross margin?
DHR's gross margin is 59.1%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A high gross margin like this indicates strong pricing power and efficient production.
What is DHR's operating margin?
DHR has an operating margin of 19.1%. Operating margin shows profitability after operating expenses but before interest and taxes. The 19.1% year-over-year improvement suggests better operational efficiency.
Are DHR's profit margins good?
DHR's margins are considered strong. With a gross margin of 59.1% and net margin of 14.7%, Danaher Corp demonstrates strong pricing power and operational efficiency.
How do profit margins affect DHR stock?
Profit margins are a key indicator of DHR's business quality and competitive position. The current margins should be evaluated alongside growth rates and return on capital to assess overall business quality. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives DHR's profit margins?
DHR's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Life Sciences Tools & Services-specific dynamics, and management execution. The significant expansion in gross margin suggests changes in these underlying drivers.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.