The ratings on Danaher Corp. reflect the company's well-above-average profile, an above-average financial risk profile, and ample liquidity, offset by somewhat aggressive business objectives and a moderately conservative financial policy. Although Danaher's business is cyclical, factors such as strong brand-name recognition; customer, end-market, and geographic diversity; limited capital intensity; and strong assets management temper earnings and cash flow volatility. This bodes well for strong operating performance over the economic cycle. The recent acquisitions forming the company's medical segment further bolster the company's business profile. The combined units are estimated to have $800 million in sales in mid-tech medical equipment markets that are growing in the mid-single-digit range and have limited fixed capital needs. Return on permanent capital (ROPC) has improved
