Diversification by product, market, customer, and geography Strong brand names and an extensive distribution network Very competitive cost base Relatively light working- and fixed-capital requirements Strong cash flow generating ability Some cyclical exposure Acquisitive growth strategy Acquisition integration risk The ratings on Danaher Corp. reflect the firm's above-average business profile, sound balance sheet, strong cash flow protection, and moderately conservative financial policy. Although Danaher's business is cyclical, the company's earnings and cash flow volatility is mitigated by several factors: its strong brand-name recognition; its customer, end-market, and geographical diversity; its limited capital intensity; and the fact that a healthy portion of the company's sales go to the more stable replacement markets. These factors bode well for the company's strong operating
