Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Thermo Fisher Scientific Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Customer relationships	22,644)	22,762)	21,792)	22,802)	16,593)
Product technology	5,557)	5,894)	5,882)	6,041)	5,523)
Tradenames	1,706)	1,634)	1,635)	1,722)	1,213)
Backlog	1,084)	1,084)	1,038)	1,060)	—)
Acquisition-related intangible assets, definite lived, gross	30,991)	31,374)	30,347)	31,625)	23,329)
Accumulated amortization	(16,693)	(15,939)	(14,140)	(12,747)	(11,879)
Acquisition-related intangible assets, definite lived, net	14,298)	15,435)	16,207)	18,878)	11,450)
Tradenames	1,235)	1,235)	1,235)	1,235)	1,235)
Acquisition-related intangible assets, indefinite lived	1,235)	1,235)	1,235)	1,235)	1,235)
Acquisition-related intangible assets	15,533)	16,670)	17,442)	20,113)	12,685)
Goodwill	45,853)	44,020)	41,196)	41,924)	26,041)
Acquisition-related intangible assets and goodwill	61,386)	60,690)	58,638)	62,037)	38,726)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Acquisition-related intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Thermo Fisher Scientific Inc. acquisition-related intangible assets decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Thermo Fisher Scientific Inc. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Acquisition-related intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Thermo Fisher Scientific Inc. acquisition-related intangible assets and goodwill increased from 2022 to 2023 and from 2023 to 2024.

Thermo Fisher Scientific Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	97,321)	98,726)	97,154)	95,123)	69,052)
Less: Goodwill	45,853)	44,020)	41,196)	41,924)	26,041)
Total assets (adjusted)	51,468)	54,706)	55,958)	53,199)	43,011)
Adjustment to Total Thermo Fisher Scientific Inc. Shareholders’ Equity
Total Thermo Fisher Scientific Inc. shareholders’ equity (as reported)	49,584)	46,735)	43,978)	40,793)	34,507)
Less: Goodwill	45,853)	44,020)	41,196)	41,924)	26,041)
Total Thermo Fisher Scientific Inc. shareholders’ equity (adjusted)	3,731)	2,715)	2,782)	(1,131)	8,466)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted

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Thermo Fisher Scientific Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total Asset Turnover
Reported total asset turnover	0.44	0.43	0.46	0.41	0.47
Adjusted total asset turnover	0.83	0.78	0.80	0.74	0.75
Financial Leverage
Reported financial leverage	1.96	2.11	2.21	2.33	2.00
Adjusted financial leverage	13.79	20.15	20.11	—	5.08
Return on Equity (ROE)
Reported ROE	12.78%	12.83%	15.80%	18.94%	18.47%
Adjusted ROE	169.79%	220.81%	249.82%	—	75.30%
Return on Assets (ROA)
Reported ROA	6.51%	6.07%	7.15%	8.12%	9.23%
Adjusted ROA	12.31%	10.96%	12.42%	14.52%	14.82%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Thermo Fisher Scientific Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Total assets	97,321)	98,726)	97,154)	95,123)	69,052)
Activity Ratio
Total asset turnover¹	0.44	0.43	0.46	0.41	0.47
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Adjusted total assets	51,468)	54,706)	55,958)	53,199)	43,011)
Activity Ratio
Adjusted total asset turnover²	0.83	0.78	0.80	0.74	0.75

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 42,879 ÷ 97,321 = 0.44

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 42,879 ÷ 51,468 = 0.83

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	97,321)	98,726)	97,154)	95,123)	69,052)
Total Thermo Fisher Scientific Inc. shareholders’ equity	49,584)	46,735)	43,978)	40,793)	34,507)
Solvency Ratio
Financial leverage¹	1.96	2.11	2.21	2.33	2.00
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	51,468)	54,706)	55,958)	53,199)	43,011)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	3,731)	2,715)	2,782)	(1,131)	8,466)
Solvency Ratio
Adjusted financial leverage²	13.79	20.15	20.11	—	5.08

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 97,321 ÷ 49,584 = 1.96

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 51,468 ÷ 3,731 = 13.79

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Thermo Fisher Scientific Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)
Total Thermo Fisher Scientific Inc. shareholders’ equity	49,584)	46,735)	43,978)	40,793)	34,507)
Profitability Ratio
ROE¹	12.78%	12.83%	15.80%	18.94%	18.47%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	3,731)	2,715)	2,782)	(1,131)	8,466)
Profitability Ratio
Adjusted ROE²	169.79%	220.81%	249.82%	—	75.30%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 6,335 ÷ 49,584 = 12.78%

² Adjusted ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 6,335 ÷ 3,731 = 169.79%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)
Total assets	97,321)	98,726)	97,154)	95,123)	69,052)
Profitability Ratio
ROA¹	6.51%	6.07%	7.15%	8.12%	9.23%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)
Adjusted total assets	51,468)	54,706)	55,958)	53,199)	43,011)
Profitability Ratio
Adjusted ROA²	12.31%	10.96%	12.42%	14.52%	14.82%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × 6,335 ÷ 97,321 = 6.51%

² Adjusted ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total assets
= 100 × 6,335 ÷ 51,468 = 12.31%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)