The investment-grade ratings on Danaher Corp. reflect the firm's excellent business risk profile, modest financial risk profile, and ample liquidity, factors offset to some extent by its somewhat aggressive business objectives and moderately conservative financial policies. Danaher is a diversified industrial manufacturer primarily operating three business segments--professional instrumentations (which includes environmental, medical technologies, and electronic test operations), industrial technologies (which mainly includes the motion and product identification platforms), and tools and components. Although Danaher's end markets are moderately cyclical, earnings and cash flow stability is achieved by the company's strong brand-name recognition; by its customer, end-market, and geographic diversity; by its limited capital intensiveness; and by its strong asset management. The company's acquisitions in markets with higher gross margins--such as
