Danaher Corporation has two business segments. The process/environmental controls group produces monitoring, sensing, controlling, and testing products. The company's tools and components segment manufactures mechanics' hand tools, automotive specialty tools, and accessories under various brand names. Selected financial statement data and related performance indicators follow.

Required:
How well did Danaher manage its inventories over the three-year period?

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Danaher Corporation ($ in thousands) Year I Year 2 Year 3 Sales $3,777,777 $3,782,444 $4,577,232 Cost of goods sold 2,315,731 2,338,027 2,791,175 Average inventory 392,642 434,423 446,912 Selected performance measures: Sales growth rate 0.18 0.00 0.21 Average inventory growth rate 0.19 0.11 0.03 Gross profit (%) 0.39 0.38 0.39 Inventory turnover ratio 5.90 5.38 6.25