Stock Analysis on Net
Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Thermo Fisher Scientific Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 458 454 431 410 396
Buildings and improvements 3,593 3,153 2,575 2,192 1,873
Machinery, equipment and leasehold improvements 9,235 7,967 7,020 6,975 5,495
Construction in progress 2,238 2,695 2,567 — —
Property, plant and equipment, at cost 15,524 14,269 12,593 9,577 7,764
Accumulated depreciation and amortization (6,076) (4,989) (4,260) (3,665) (3,015)
Property, plant and equipment, net 9,448 9,280 8,333 5,912 4,749

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Property, plant and equipment, at cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Thermo Fisher Scientific Inc. property, plant and equipment, at cost increased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Thermo Fisher Scientific Inc. property, plant and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Thermo Fisher Scientific Inc., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 40.33% 36.11% 35.03% 39.98% 40.92%
Estimated total useful life (years) 14 14 15 14 13
Estimated age, time elapsed since purchase (years) 6 5 5 6 5
Estimated remaining life (years) 8 9 10 8 8

Based on: 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), 10-K (reporting date: 2019-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Thermo Fisher Scientific Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Thermo Fisher Scientific Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Thermo Fisher Scientific Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Estimated remaining life Thermo Fisher Scientific Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 6,076 4,989 4,260 3,665 3,015
Property, plant and equipment, at cost 15,524 14,269 12,593 9,577 7,764
Land 458 454 431 410 396
Asset Age Ratio
Average age1 40.33% 36.11% 35.03% 39.98% 40.92%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, at cost – Land)
= 100 × 6,076 ÷ (15,524 – 458) = 40.33%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Thermo Fisher Scientific Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, at cost 15,524 14,269 12,593 9,577 7,764
Land 458 454 431 410 396
Depreciation of property, plant and equipment 1,068 986 831 658 564
Asset Age Ratio (Years)
Estimated total useful life1 14 14 15 14 13

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated total useful life = (Property, plant and equipment, at cost – Land) ÷ Depreciation of property, plant and equipment
= (15,524 – 458) ÷ 1,068 = 14

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Thermo Fisher Scientific Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 6,076 4,989 4,260 3,665 3,015
Depreciation of property, plant and equipment 1,068 986 831 658 564
Asset Age Ratio (Years)
Time elapsed since purchase1 6 5 5 6 5

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation of property, plant and equipment
= 6,076 ÷ 1,068 = 6

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Thermo Fisher Scientific Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 9,448 9,280 8,333 5,912 4,749
Land 458 454 431 410 396
Depreciation of property, plant and equipment 1,068 986 831 658 564
Asset Age Ratio (Years)
Estimated remaining life1 8 9 10 8 8

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation of property, plant and equipment
= (9,448 – 458) ÷ 1,068 = 8

Asset age ratio Description The company
Estimated remaining life Thermo Fisher Scientific Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.