Analysis of Goodwill and Intangible Assets
Goodwill and Intangible Asset Disclosure
Thermo Fisher Scientific Inc., balance sheet: goodwill and intangible assets
US$ in millions
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
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.’s acquisition-related intangible assets decreased from 2018 to 2019 and from 2019 to 2020. |
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.’s goodwill increased from 2018 to 2019 and from 2019 to 2020. |
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.’s acquisition-related intangible assets and goodwill decreased from 2018 to 2019 and from 2019 to 2020. |
Adjustments to Financial Statements: Removal of Goodwill
Thermo Fisher Scientific Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Thermo Fisher Scientific Inc., adjusted financial ratios
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
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.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
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.’s adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Thermo Fisher Scientific Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020. |
Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
2020 Calculations
1 Total asset turnover = Revenues ÷ Total assets
= 32,218 ÷ 69,052 = 0.47
2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 32,218 ÷ 43,011 = 0.75
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.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
2020 Calculations
1 Financial leverage = Total assets ÷ Shareholders’ equity
= 69,052 ÷ 34,507 = 2.00
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 43,011 ÷ 8,466 = 5.08
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.’s adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
2020 Calculations
1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 6,375 ÷ 34,507 = 18.47%
2 Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 6,375 ÷ 8,466 = 75.30%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Thermo Fisher Scientific Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
2020 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 6,375 ÷ 69,052 = 9.23%
2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 6,375 ÷ 43,011 = 14.82%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020. |