Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 123

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 2
Chunk 123
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440 million, or 25%, as compared to the comparable period of 2024.  The year-over-year change in operating cash flows from 2024 to 2025 was primarily attributable to the following factors:

•2025 operating cash flows reflected a decrease of $134 million in net earnings for the first three months of 2025 as compared to the comparable period in 2024.  

•Net earnings for the first three months of 2025 also included $40 million higher year-over-year noncash charges for unrealized investment gains/losses, impairments, depreciation, intangible asset amortization and stock compensation expense, net of a 2025 pretax gain on the sale of a product line and a year-over-year decrease in amortization of an acquisition-related inventory step-up.  Depreciation expense relates to the Company’s manufacturing and operating facilities as well as instrumentation leased to customers under OTL arrangements.  Depreciation, amortization, impairments and stock compensation are noncash expenses that decrease earnings without a corresponding impact to operating cash flows.  Unrealized investment gains/losses impact net earnings 

30

without immediately impacting cash flows as the cash flow impact from investments occurs when the invested capital is returned to the Company.

•The aggregate of trade accounts receivable, inventories and trade accounts payable used $138 million in operating cash flows during the first three months of 2025, compared to $324 million of operating cash flows provided in the comparable period of 2024.  The amount of cash flow generated from or used by the aggregate of trade accounts receivable, inventories and trade accounts payable depends upon how effectively the Company manages the cash conversion cycle, which effectively represents the number of days that elapse from the day it pays for the purchase of raw materials and components to the collection of cash from its customers and can be significantly impacted by the timing of collections and payments in a period. 

•The aggregate of prepaid expenses and other assets, deferred income taxes and accrued expenses and other liabilities used $265 million of operating cash flows during the first three months of 2025, compared to $381 million of operating cash flows used in the comparable period of 2024.  The timing of cash payments for customer funding drove the majority of this change.

Investing Activities

Cash flows relating to investing activities consist primarily of cash used for acquisitions and capital expenditures, including instruments leased to customers, cash used for investments and cash proceeds from divestitures of businesses or assets.

Net cash used in investing activities