Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Thermo Fisher Scientific Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	561)	228)	813)	446)	521)
Non-U.S.	1,175)	1,206)	633)	1,148)	423)
State	130)	150)	254)	160)	175)
Current income tax provision	1,866)	1,584)	1,700)	1,754)	1,119)
Federal	(1,026)	(551)	(611)	(227)	(237)
Non-U.S.	(72)	(647)	(314)	(399)	(18)
State	(111)	(102)	(72)	(19)	(14)
Deferred income tax benefit	(1,209)	(1,300)	(997)	(645)	(269)
Provision for income taxes	657)	284)	703)	1,109)	850)

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
Current income tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Thermo Fisher Scientific Inc. current income tax provision decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred income tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Thermo Fisher Scientific Inc. deferred income tax benefit decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Thermo Fisher Scientific Inc. provision for income taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Thermo Fisher Scientific Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	9.34%	4.51%	8.97%	12.54%	11.76%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Thermo Fisher Scientific Inc. effective income tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Thermo Fisher Scientific Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Depreciation and amortization	(4,133)	(4,286)	(4,277)	(4,687)	(2,962)
Net operating loss and credit carryforwards	2,915)	2,385)	1,951)	1,652)	1,668)
Reserves and accruals	161)	157)	140)	162)	164)
Accrued compensation	318)	299)	259)	318)	253)
Inventory basis difference	309)	275)	364)	181)	112)
Deferred interest	534)	753)	445)	295)	227)
Research and development and other capitalized costs	536)	380)	220)	—)	—)
Unrealized (gains) losses on hedging instruments	(363)	(66)	(199)	(33)	242)
Contract liabilities	280)	130)	—)	—)	—)
Other, net	148)	199)	435)	251)	124)
Deferred tax assets (liabilities), net before valuation allowance	705)	226)	(662)	(1,861)	(172)
Valuation allowance	(1,043)	(1,317)	(1,322)	(968)	(933)
Deferred tax assets (liabilities), net	(338)	(1,091)	(1,984)	(2,829)	(1,105)

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
Deferred tax assets (liabilities), net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Thermo Fisher Scientific Inc. deferred tax assets (liabilities), net increased from 2022 to 2023 and from 2023 to 2024.

Thermo Fisher Scientific Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	930)	831)	865)	1,008)	689)
	Deferred tax liabilities	1,268)	1,922)	2,849)	3,837)	1,794)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Thermo Fisher Scientific Inc. deferred tax assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Thermo Fisher Scientific Inc. deferred tax liabilities decreased 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: Noncurrent deferred tax assets, net	930)	831)	865)	1,008)	689)
Total assets (adjusted)	96,391)	97,895)	96,289)	94,115)	68,363)
Adjustment to Total Liabilities
Total liabilities (as reported)	47,650)	51,884)	53,006)	54,146)	34,535)
Less: Noncurrent deferred tax liabilities, net	1,268)	1,922)	2,849)	3,837)	1,794)
Total liabilities (adjusted)	46,382)	49,962)	50,157)	50,309)	32,741)
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: Net deferred tax assets (liabilities)	(338)	(1,091)	(1,984)	(2,829)	(1,105)
Total Thermo Fisher Scientific Inc. shareholders’ equity (adjusted)	49,922)	47,826)	45,962)	43,622)	35,612)
Adjustment to Net Income Attributable To Thermo Fisher Scientific Inc.
Net income attributable to Thermo Fisher Scientific Inc. (as reported)	6,335)	5,995)	6,950)	7,725)	6,375)
Add: Deferred income tax expense (benefit)	(1,209)	(1,300)	(997)	(645)	(269)
Net income attributable to Thermo Fisher Scientific Inc. (adjusted)	5,126)	4,695)	5,953)	7,080)	6,106)

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
Net Profit Margin
Reported net profit margin	14.77%	13.99%	15.47%	19.70%	19.79%
Adjusted net profit margin	11.95%	10.96%	13.25%	18.06%	18.95%
Total Asset Turnover
Reported total asset turnover	0.44	0.43	0.46	0.41	0.47
Adjusted total asset turnover	0.44	0.44	0.47	0.42	0.47
Financial Leverage
Reported financial leverage	1.96	2.11	2.21	2.33	2.00
Adjusted financial leverage	1.93	2.05	2.09	2.16	1.92
Return on Equity (ROE)
Reported ROE	12.78%	12.83%	15.80%	18.94%	18.47%
Adjusted ROE	10.27%	9.82%	12.95%	16.23%	17.15%
Return on Assets (ROA)
Reported ROA	6.51%	6.07%	7.15%	8.12%	9.23%
Adjusted ROA	5.32%	4.80%	6.18%	7.52%	8.93%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
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 slightly improved from 2023 to 2024.
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 decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

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)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Profitability Ratio
Net profit margin¹	14.77%	13.99%	15.47%	19.70%	19.79%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,126)	4,695)	5,953)	7,080)	6,106)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Profitability Ratio
Adjusted net profit margin²	11.95%	10.96%	13.25%	18.06%	18.95%

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 Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 6,335 ÷ 42,879 = 14.77%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 5,126 ÷ 42,879 = 11.95%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Adjusted total assets	96,391)	97,895)	96,289)	94,115)	68,363)
Activity Ratio
Adjusted total asset turnover²	0.44	0.44	0.47	0.42	0.47

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 ÷ 96,391 = 0.44

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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 slightly improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	96,391)	97,895)	96,289)	94,115)	68,363)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	49,922)	47,826)	45,962)	43,622)	35,612)
Solvency Ratio
Adjusted financial leverage²	1.93	2.05	2.09	2.16	1.92

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
= 96,391 ÷ 49,922 = 1.93

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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 decreased 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 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,126)	4,695)	5,953)	7,080)	6,106)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	49,922)	47,826)	45,962)	43,622)	35,612)
Profitability Ratio
Adjusted ROE²	10.27%	9.82%	12.95%	16.23%	17.15%

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 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 5,126 ÷ 49,922 = 10.27%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,126)	4,695)	5,953)	7,080)	6,106)
Adjusted total assets	96,391)	97,895)	96,289)	94,115)	68,363)
Profitability Ratio
Adjusted ROA²	5.32%	4.80%	6.18%	7.52%	8.93%

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 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total assets
= 100 × 5,126 ÷ 96,391 = 5.32%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)