Financial statements analysis and common stock valuation

Return on Equity (ROE)
since 2005

Thermo Fisher Scientific Inc.’s profitability ratio calculated as net income divided by shareholders’ equity.

• Calculation
• Comparison to Competitors
• Comparison to Health Care Equipment & Services Sector
• Comparison to Health Care Industry

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Thermo Fisher Scientific Inc.’s cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the Thermo Fisher Scientific Inc.’s assets. Operating performance ratios describe the relationship between the Thermo Fisher Scientific Inc.’s level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Price to Operating Profit (P/OP)
since 2005

Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.

• Calculation
• Comparison to Competitors

Income Statement

The income statement (statement of earnings) reports on the performance of Thermo Fisher Scientific Inc., the result of its operating activities.