Thermo Fisher Scientific Inc. (NYSE:TMO)

Total Asset Turnover

The reported total asset turnover ratio exhibited fluctuation over the analyzed periods, declining from 0.47 in 2020 to a low of 0.41 in 2021, followed by a recovery trend peaking at 0.46 in 2022 before slightly decreasing and stabilizing around 0.44 in 2024. The adjusted total asset turnover mirrored this pattern closely, indicating consistency in the company's efficiency in utilizing assets to generate revenue.

Current Ratio

The reported current ratio showed a decline from 2.13 in 2020 to 1.5 in 2021, maintaining a similar level through 2022 at 1.48. It then increased notably to 1.75 in 2023 before slightly decreasing to 1.66 in 2024. Adjusted figures followed a comparable trend, suggesting short-term liquidity faced initial pressures but improved in more recent years while remaining above 1.5, implying adequate current asset coverage for current liabilities.

Debt to Equity Ratio

The reported debt to equity ratio increased from 0.63 in 2020 to a peak of 0.85 in 2021, then gradually decreased to 0.63 by 2024. The adjusted ratio showed the same trajectory. This trend indicates an initial rise in leverage followed by a strengthening of the equity base or reduction in debt levels, signaling an improving solvency position towards the end of the period.

Debt to Capital Ratio

This ratio similarly increased from 0.39 in 2020 to 0.46 in 2021, then declined steadily back to 0.39 by 2024 as per both reported and adjusted data. The pattern points to a transient increase in debt financing relative to total capital, with the company returning to a relatively lower leverage structure over time.

Financial Leverage

The reported financial leverage ratio rose from 2.0 in 2020 to 2.33 in 2021, before descending gradually to 1.96 in 2024. Adjusted figures trended similarly but at marginally lower levels. This suggests that the company's asset financing through liabilities experienced some expansion followed by a conservative deleveraging approach in subsequent years.

Net Profit Margin

The reported net profit margin demonstrated a decline from 19.79% in 2020 to 13.99% in 2023, with a slight recovery to 14.77% in 2024. Adjusted margins showed a more pronounced decrease from 18.65% in 2020 to 10.59% in 2023, improving somewhat to 13.09% in 2024. This overall downward trend indicates reduced profitability from sales over time, albeit with recent signs of improvement.

Return on Equity (ROE)

Reported ROE decreased from 18.47% in 2020 to 12.78% in 2024, mirroring adjusted ROE which declined from 16.78% to 11.17% in the same period. These declines reflect diminished effectiveness in generating earnings from shareholders’ equity, aligning with the observed reductions in profit margin and changes in leverage.

Return on Assets (ROA)

Reported ROA fell steadily from 9.23% in 2020 to 6.51% in 2024, with adjusted ROA showing a sharper decline from 8.77% to 5.81%. This indicates decreasing efficiency in utilizing total assets to create net income, consistent with lower asset turnover ratios and reduced profitability.

The financial data indicates several noteworthy trends over the five-year period presented. Revenues exhibited overall growth from 2020 to 2022, increasing from $32,218 million to $44,915 million, followed by a decline in 2023 to $42,857 million, with a slight rebound in 2024 to $42,879 million. This suggests a peak in revenue generation during 2022 with some stabilization thereafter.

Total assets showed a consistent and significant increase from $69,052 million in 2020 to a peak of $98,726 million in 2023, before a marginal decline to $97,321 million in 2024. This upward trend in asset base indicates ongoing investment or acquisition of assets until 2023, followed by a slight reduction or revaluation in the final year.

The reported total asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, declined from 0.47 in 2020 to 0.41 in 2021, rebounding to 0.46 in 2022 but declining again to 0.43 in 2023 and modestly increasing to 0.44 in 2024. These fluctuations suggest varying levels of operational efficiency, with an overall slight decrease from the initial value in 2020.

Adjusted total assets followed a similar trajectory to reported total assets, rising from $68,547 million in 2020 to $98,088 million in 2023, then slightly decreasing to $96,564 million in 2024. The adjusted total asset turnover ratio exhibits a pattern akin to the reported ratio, declining initially from 0.47 in 2020 to 0.42 in 2021, increasing to 0.47 in 2022, and then settling to 0.44 in both 2023 and 2024.

Overall, the combination of growing assets alongside fluctuating yet generally decreasing total asset turnover ratios suggests that asset expansion has outpaced revenue growth in certain periods, potentially indicating decreasing asset efficiency or deliberate strategic investments with longer-term payoffs. The stabilization of both revenue and asset utilization metrics in the latter years points to an adjustment phase following earlier expansion.

Revenue Trend

Growth from 2020 to 2022, peaking in 2022, followed by a decline and stabilization.

Total Assets

Consistent increase through 2023 with a slight decrease in 2024, indicating asset base expansion and minor contraction.

Reported Total Asset Turnover

Initial decline in 2021, recovery in 2022, followed by decreases and modest recovery, overall slight downward trend.

Adjusted Total Assets and Turnover

Mirrors reported assets and turnover, confirming similar utilization and efficiency patterns.

Implications

Asset growth has outpaced revenue in some years, suggesting reduced efficiency or investment strategies with delayed returns; recent stabilization may reflect operational adjustments.

The financial data over the five-year period reveals notable fluctuations in the company's liquidity position, as reflected by both reported and adjusted current assets, current liabilities, and current ratios.

Current Assets

Current assets experienced moderate variability, beginning at US$21,957 million in 2020, decreasing slightly to US$20,113 million in 2021, then rising sharply to a peak of US$25,229 million in 2022. Subsequently, current assets declined to US$24,589 million in 2023 and further decreased to US$22,137 million in 2024. This pattern suggests an overall upward trend through 2022 followed by a reduction over the last two years.

Current Liabilities

Current liabilities showed a consistent upward movement from 2020 through 2022, increasing from US$10,304 million to US$17,010 million. After reaching this peak in 2022, liabilities decreased notably to US$14,012 million in 2023 and further to US$13,332 million by 2024, indicating an improvement in short-term debt management or payment obligations.

Reported Current Ratio

Reflecting the interaction between current assets and liabilities, the reported current ratio declined significantly from 2.13 in 2020 to approximately 1.5 in 2021 and 2022, indicating a reduction in liquidity strength. However, a recovery trend emerges in 2023 with the ratio rising to 1.75, followed by a slight decrease to 1.66 in 2024. Overall, the ratio remains below the 2020 level but above 1.5 in the last two years, suggesting moderately healthy short-term financial stability.

Adjusted Current Assets and Liabilities

The adjusted figures closely mirror the reported values with minor variances, showing similar trends. Adjusted current assets range from approximately US$22,141 million in 2020 to a peak of US$25,418 million in 2022, then decreasing to US$22,310 million by 2024. Adjusted current liabilities increase from US$10,283 million in 2020 to US$16,969 million in 2022, before dropping to US$13,282 million in 2024.

Adjusted Current Ratio

The adjusted current ratio follows the same trajectory as the reported ratio, declining from 2.15 in 2020 to around 1.5 in 2021 and 2022, then recovering to 1.78 in 2023 before a minor decline to 1.68 in 2024. This pattern confirms the observation of liquidity weakening during 2021-2022, followed by a subsequent strengthening phase.

In summary, the company's liquidity showed deterioration between 2020 and 2022 driven by rising current liabilities outpacing growth in current assets. Since 2023, measures appear to have been taken to reduce liabilities and stabilize assets, leading to an improvement in the current ratio. Despite improvements, liquidity ratios remain below the initial 2020 level, indicating room for further enhancement in short-term asset management and liability control.

The financial data reveals several noteworthy trends in the company's capital structure from 2020 through 2024. Both total debt and shareholders' equity have experienced fluctuations over the analyzed period, reflecting dynamic financial management and potential strategic initiatives.

Total Debt

Total debt exhibited a rising trend from 21,735 million USD at the end of 2020 to a peak of 34,917 million USD at the end of 2023. However, there is a notable decline in 2024, where total debt decreases to 31,275 million USD. This pattern indicates an initial period of increased leverage followed by a reduction in indebtedness towards the latest period.

Total Shareholders’ Equity

Shareholders’ equity demonstrated consistent growth throughout the five years, rising from 34,507 million USD in 2020 to 49,584 million USD in 2024. This steady appreciation suggests ongoing retention of earnings or capital infusion that strengthened the company's equity base over time.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased from 0.63 in 2020 to 0.85 in 2021, indicating greater leverage, then gradually moderated to 0.63 by 2024. This declining trend after 2021 illustrates a shift towards a more balanced capital structure, potentially aiming to reduce financial risk.

Adjusted Debt and Equity

The adjusted total debt and equity figures follow similar trajectories to the reported amounts, with adjusted debt peaking in 2023 before decreasing in 2024, and adjusted equity consistently increasing each year. The adjusted debt to equity ratio aligns closely with the reported ratio, reflecting prudent adjustment methods that confirm the overall leverage trend of initial increase and subsequent moderation.

Overall, the company's financial profile shows a strategic approach to capital management, where leverage was ramped up until 2023, then reduced in the most recent year. Concurrently, equity growth remained robust, enhancing the company's financial stability and possibly improving creditworthiness. These trends could indicate responses to market conditions, investment opportunities, or risk management strategies implemented over the reviewed period.

The financial data shows significant movements in the company's debt and capital structure over the five-year period from 2020 to 2024. Both total debt and adjusted total debt increase notably from 2020 through 2021, followed by relatively stable but slightly fluctuating levels until a decrease occurs in 2024.

Total Debt and Adjusted Total Debt

The total debt rose sharply from approximately 21.7 billion USD in 2020 to around 34.9 billion USD in 2021. It then plateaued between 34.4 and 34.9 billion USD in the subsequent years before declining to about 31.3 billion USD in 2024. Similarly, adjusted total debt follows this pattern, increasing from about 22.5 billion USD in 2020 to 36.3 billion USD in 2021, maintaining a range around 36.0 to 36.4 billion USD, and then decreasing to roughly 32.8 billion USD in 2024. This trend indicates a period of increased leveraging followed by a modest deleveraging in the latest year.

Total Capital and Adjusted Total Capital

Total capital demonstrates a consistent upward trajectory from 56.2 billion USD in 2020 to about 81.7 billion USD in 2023, slightly declining to 80.9 billion USD in 2024. Adjusted capital exhibits a similar pattern, rising steadily from 58.4 billion USD in 2020 to 84.6 billion USD in 2023 before slightly falling to 83.0 billion USD in 2024. This suggests growth in the company’s overall capital base over the reviewed period, with a minor contraction towards the end.

Debt to Capital Ratios

The reported debt to capital ratio increases from 0.39 in 2020 to a peak of 0.46 in 2021, then gradually declines to 0.39 by 2024. The adjusted debt to capital ratio follows an almost identical pattern, rising to 0.45 in 2021, decreasing steadily thereafter, and ending at 0.39 in 2024. These ratios imply that while leverage increased significantly in 2021, the company has since moved towards a more balanced capital structure, returning to a level of leverage similar to that at the start of the period.

Overall, the data reveals a substantial increase in debt and capital in 2021, indicative of an expansion or investment phase. The subsequent years show stabilization and a slight reduction in debt levels paired with continued capital growth, reflecting a cautious approach to leverage management and capital structure optimization. The company's ability to reduce its leverage ratio back to the initial level within four years points to an effective management of financial risk and capital resources.

The financial data reveals a general upward trend in both total assets and shareholders’ equity over the analyzed period from the end of 2020 through the end of 2024. Total assets increased significantly from approximately 69 billion US dollars to a peak near 99 billion US dollars by the end of 2023, before showing a slight decline to around 97 billion US dollars in 2024. Similarly, shareholders’ equity showed consistent growth, rising from about 34.5 billion US dollars in 2020 to nearly 49.6 billion US dollars in 2024.

Regarding financial leverage, both reported and adjusted ratios indicate a steady decline over time. The reported financial leverage decreased from 2.00 in 2020 to 1.96 in 2024, showing a reduction in the proportion of debt relative to equity. The adjusted financial leverage followed a similar pattern, dropping from 1.91 to 1.92 after peaking at 2.14 in 2021, and then declining sequentially to 1.92 by 2024. This suggests a gradual strengthening of the company’s equity base in relation to its assets.

Total Assets

Marked growth from 69.1 billion US dollars in 2020 to a high of 98.7 billion in 2023, followed by a marginal decrease to 97.3 billion in 2024.

Shareholders’ Equity

Continuous increase from 34.5 billion US dollars in 2020 to 49.6 billion in 2024, indicating a solid foundation of equity augmentation throughout the years.

Reported Financial Leverage

Gradual decline in the leverage ratio from 2.00 in 2020 to 1.96 in 2024 suggests a decreasing reliance on debt financing relative to equity.

Adjusted Total Assets and Equity

Adjusted figures closely mirror the reported ones, confirming the observed trends of asset growth and equity enhancement with adjusted total assets rising to a peak in 2023 and adjusted equity steadily increasing through 2024.

Adjusted Financial Leverage

The adjusted leverage ratios reflect an initial increase in 2021 followed by a sustained decrease, reaching 1.92 in 2024, reinforcing the trend toward improved equity funding.

In summary, the company demonstrates sustained asset growth accompanied by significant equity expansion and a prudent reduction in financial leverage. The slight dip in total assets in the final year may warrant further analysis but does not materially detract from the overall positive trend of financial strength and stability observed through the period.

Net Income Attributable to Thermo Fisher Scientific Inc.

The net income exhibited an overall increasing trend from 2020 to 2021, rising from $6,375 million to $7,725 million. However, it declined in 2022 to $6,950 million and further dropped to $5,995 million in 2023. In 2024, a slight recovery occurred with net income increasing to $6,335 million. This pattern suggests a peak in profitability in 2021 followed by fluctuations and a moderate regain in the most recent year.

Revenues

Revenues showed a steady upward trajectory from 2020 through 2022, increasing from $32,218 million to $44,915 million. In 2023, revenue slightly decreased to $42,857 million and remained relatively stable in 2024 at $42,879 million. This indicates strong growth initially, with revenues stabilizing in the later years.

Reported Net Profit Margin

The reported net profit margin remained fairly consistent between 2020 and 2021, at approximately 19.7%. Subsequently, it declined markedly to 15.47% in 2022, then further decreased to 13.99% in 2023. A modest improvement to 14.77% was noted in 2024. This trend reflects a reduction in profitability relative to revenue after 2021, with minor signs of recovery recently.

Adjusted Net Income

Adjusted net income followed a similar but more pronounced downward pattern than reported net income. After rising from $6,010 million in 2020 to $7,522 million in 2021, it fell sharply to $5,242 million in 2022 and continued declining to $4,537 million in 2023. An increase to $5,612 million in 2024 indicates initial recovery after the substantial decreases. This volatility suggests adjustments affected income figures substantially in later years.

Adjusted Net Profit Margin

The adjusted net profit margin was relatively steady around 18.65% to 19.18% during 2020 and 2021. Beginning in 2022, it declined significantly to 11.67%, then further decreased to 10.59% in 2023. A partial rebound to 13.09% was observed in 2024. These fluctuations indicate varying operational efficiency or expense adjustments impacting profitability during this period.

Summary of Trends

The financial data reveals strong revenue and profit growth through 2021, followed by a period of decline and stabilization in revenues and profit margins. Both reported and adjusted profit margins decreased markedly after 2021, indicating challenges in maintaining profitability despite relatively high revenue levels. The adjusted figures suggest more pronounced volatility, possibly due to non-recurring items or one-time adjustments. The modest recovery in 2024 across several metrics may indicate initial improvement in operational performance or cost management.

The financial data over the five-year period reveals several notable trends in profitability, equity, and return on equity (ROE) metrics. There is an overall growth in shareholders' equity and adjusted total equity, while net income and adjusted net income have displayed some fluctuations. The ROE metrics show a declining trend.

Net Income and Adjusted Net Income

Net income attributable to the company increased from 6,375 million US dollars in 2020 to a peak of 7,725 million in 2021. This was followed by a decline to 6,950 million in 2022 and a further decrease to 5,995 million in 2023. In 2024, net income showed a marginal recovery to 6,335 million. Adjusted net income mirrored this behavior but with more pronounced volatility, peaking at 7,522 million in 2021 and then declining sharply to 5,242 million in 2022 and to 4,537 million in 2023, before partially rebounding to 5,612 million in 2024.

Shareholders' Equity and Adjusted Total Equity

Both shareholders’ equity and adjusted total equity steadily increased throughout the period. Shareholders’ equity grew from 34,507 million US dollars in 2020 to 49,584 million in 2024, reflecting a consistent upward trajectory. Adjusted total equity also grew from 35,827 million in 2020 to 50,232 million in 2024, signaling sustained capital accumulation or retained earnings over these years.

Reported and Adjusted Return on Equity (ROE)

Reported ROE started at 18.47% in 2020 and slightly improved to 18.94% in 2021. However, from 2022 onwards, it declined steadily to 15.80%, then to 12.83% in 2023, and marginally decreased further to 12.78% in 2024. Adjusted ROE followed a similar pattern, beginning at 16.78% in 2020, rising slightly to 17.11% in 2021, but then falling sharply to 11.31% in 2022 and to 9.42% in 2023. There was a modest recovery to 11.17% in 2024. This decline in ROE indicates a reduced profitability relative to equity over the period despite equity growth.

The financial data reveals a fluctuating trend in profitability and asset management over the five-year period. Net income attributable to the company showed an initial growth from 2020 to 2021, reaching a peak in 2021, followed by a decline in the subsequent years, before a slight recovery in 2024. Specifically, net income increased from 6375 million US dollars in 2020 to 7725 million in 2021, then decreased to 6950 million in 2022, dropped further to 5995 million in 2023, and slightly rose to 6335 million in 2024.

Total assets increased substantially from 2020 through 2023, suggesting ongoing investment or acquisition strategies. Assets grew from 69,052 million US dollars in 2020 to 98,726 million in 2023, followed by a slight decrease to 97,321 million in 2024. This indicates a general expansion phase with a minor contraction in the latest year.

The reported Return on Assets (ROA) shows a continuous downward trend for most of the period, declining from 9.23% in 2020 to 6.07% in 2023, with a modest rebound to 6.51% in 2024. This pattern signals declining efficiency in generating net income from total assets, although some improvement occurred in the final year.

Adjusted net income presents a similar trend to reported net income but with some distinctions. Adjusted figures highlight a rise from 6010 million in 2020 to 7522 million in 2021, followed by a sharper decline to 5242 million in 2022 and further down to 4537 million in 2023. A recovery to 5612 million is observed in 2024, indicating potential effects of adjustments affecting comparability over the years.

Adjusted total assets closely follow the reported total assets trend with steady growth up to 2023 and a slight decrease in 2024. Values rose from 68,547 million in 2020 to 98,088 million in 2023, before declining to 96,564 million in 2024.

Adjusted ROA reflects a declining trend, more pronounced than the reported ROA, descending from 8.77% in 2020 to 4.63% in 2023, with a rebound to 5.81% in 2024. This suggests that when accounting for adjustments, asset profitability experienced more significant erosion but followed a similar pattern of recovery in the latest period.

Profitability

Initial strong net income growth was not sustained, with declines over 2022 and 2023, partially recovering in 2024.

Asset Base

Consistent growth in both reported and adjusted total assets until 2023, with a slight contraction in 2024.

Return on Assets (ROA)

Steady decline in ROA over the period indicates decreasing efficiency in asset utilization to generate income, though some recovery is noted in the final year.

Adjusted Figures

Adjusted net income and ROA display steeper declines and later recovery compared to reported figures, suggesting significant impacts from adjustments on profitability assessments.

Overall, the trends suggest that while asset growth continued, challenges arose in maintaining profitability and efficient asset utilization. The recovery in 2024 could indicate early signs of stabilization or improvement in operational performance.