Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
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., balance sheet: inventory

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Raw materials	2,057)	2,405)	1,922)	1,305)	971)
Work in process	705)	660)	676)	540)	517)
Finished goods	2,326)	2,569)	2,453)	2,184)	1,882)
Inventories	5,088)	5,634)	5,051)	4,029)	3,370)

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).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Thermo Fisher Scientific Inc. inventories increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Inventories
Inventories at LIFO (as reported)	5,088)	5,634)	5,051)	4,029)	3,370)
Add: Inventory LIFO reserve	—)	—)	—)	49)	39)
Inventories at FIFO (adjusted)	5,088)	5,634)	5,051)	4,078)	3,409)
Adjustment to Current Assets
Current assets (as reported)	24,589)	25,229)	20,113)	21,957)	11,893)
Add: Inventory LIFO reserve	—)	—)	—)	49)	39)
Current assets (adjusted)	24,589)	25,229)	20,113)	22,006)	11,932)
Adjustment to Total Assets
Total assets (as reported)	98,726)	97,154)	95,123)	69,052)	58,381)
Add: Inventory LIFO reserve	—)	—)	—)	49)	39)
Total assets (adjusted)	98,726)	97,154)	95,123)	69,101)	58,420)
Adjustment to Total Thermo Fisher Scientific Inc. Shareholders’ Equity
Total Thermo Fisher Scientific Inc. shareholders’ equity (as reported)	46,735)	43,978)	40,793)	34,507)	29,675)
Add: Inventory LIFO reserve	—)	—)	—)	49)	39)
Total Thermo Fisher Scientific Inc. shareholders’ equity (adjusted)	46,735)	43,978)	40,793)	34,556)	29,714)
Adjustment to Net Income Attributable To Thermo Fisher Scientific Inc.
Net income attributable to Thermo Fisher Scientific Inc. (as reported)	5,995)	6,950)	7,725)	6,375)	3,696)
Add: Increase (decrease) in inventory LIFO reserve	—)	—)	(49)	10)	5)
Net income attributable to Thermo Fisher Scientific Inc. (adjusted)	5,995)	6,950)	7,676)	6,385)	3,701)

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).

Thermo Fisher Scientific Inc. inventory value on Dec 31, 2023 would be $5,088) (in millions) if the FIFO inventory method was used instead of LIFO. Thermo Fisher Scientific Inc. inventories, valued on a LIFO basis, on Dec 31, 2023 were $5,088). Thermo Fisher Scientific Inc. inventories would have been $—) higher than reported on Dec 31, 2023 if the FIFO method had been used instead.

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

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Thermo Fisher Scientific Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current Ratio
Reported current ratio (LIFO)	1.75	1.48	1.50	2.13	1.92
Adjusted current ratio (FIFO)	1.75	1.48	1.50	2.14	1.93
Net Profit Margin
Reported net profit margin (LIFO)	13.99%	15.47%	19.70%	19.79%	14.47%
Adjusted net profit margin (FIFO)	13.99%	15.47%	19.58%	19.82%	14.49%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.43	0.46	0.41	0.47	0.44
Adjusted total asset turnover (FIFO)	0.43	0.46	0.41	0.47	0.44
Financial Leverage
Reported financial leverage (LIFO)	2.11	2.21	2.33	2.00	1.97
Adjusted financial leverage (FIFO)	2.11	2.21	2.33	2.00	1.97
Return on Equity (ROE)
Reported ROE (LIFO)	12.83%	15.80%	18.94%	18.47%	12.45%
Adjusted ROE (FIFO)	12.83%	15.80%	18.82%	18.48%	12.46%
Return on Assets (ROA)
Reported ROA (LIFO)	6.07%	7.15%	8.12%	9.23%	6.33%
Adjusted ROA (FIFO)	6.07%	7.15%	8.07%	9.24%	6.34%

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).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Thermo Fisher Scientific Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
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 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

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

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Current assets	24,589)	25,229)	20,113)	21,957)	11,893)
Current liabilities	14,012)	17,010)	13,436)	10,304)	6,197)
Liquidity Ratio
Current ratio¹	1.75	1.48	1.50	2.13	1.92
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	24,589)	25,229)	20,113)	22,006)	11,932)
Current liabilities	14,012)	17,010)	13,436)	10,304)	6,197)
Liquidity Ratio
Adjusted current ratio²	1.75	1.48	1.50	2.14	1.93

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 Current ratio = Current assets ÷ Current liabilities
= 24,589 ÷ 14,012 = 1.75

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 24,589 ÷ 14,012 = 1.75

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Thermo Fisher Scientific Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Profitability Ratio
Net profit margin¹	13.99%	15.47%	19.70%	19.79%	14.47%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,676)	6,385)	3,701)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Profitability Ratio
Adjusted net profit margin²	13.99%	15.47%	19.58%	19.82%	14.49%

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 Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 5,995 ÷ 42,857 = 13.99%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 5,995 ÷ 42,857 = 13.99%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Activity Ratio
Total asset turnover¹	0.43	0.46	0.41	0.47	0.44
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Adjusted total assets	98,726)	97,154)	95,123)	69,101)	58,420)
Activity Ratio
Adjusted total asset turnover²	0.43	0.46	0.41	0.47	0.44

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 Total asset turnover = Revenues ÷ Total assets
= 42,857 ÷ 98,726 = 0.43

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 42,857 ÷ 98,726 = 0.43

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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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,507)	29,675)
Solvency Ratio
Financial leverage¹	2.11	2.21	2.33	2.00	1.97
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	98,726)	97,154)	95,123)	69,101)	58,420)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,556)	29,714)
Solvency Ratio
Adjusted financial leverage²	2.11	2.21	2.33	2.00	1.97

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 Financial leverage = Total assets ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 98,726 ÷ 46,735 = 2.11

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 98,726 ÷ 46,735 = 2.11

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,507)	29,675)
Profitability Ratio
ROE¹	12.83%	15.80%	18.94%	18.47%	12.45%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,676)	6,385)	3,701)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,556)	29,714)
Profitability Ratio
Adjusted ROE²	12.83%	15.80%	18.82%	18.48%	12.46%

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 ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 5,995 ÷ 46,735 = 12.83%

² Adjusted ROE = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 5,995 ÷ 46,735 = 12.83%

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Profitability Ratio
ROA¹	6.07%	7.15%	8.12%	9.23%	6.33%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,676)	6,385)	3,701)
Adjusted total assets	98,726)	97,154)	95,123)	69,101)	58,420)
Profitability Ratio
Adjusted ROA²	6.07%	7.15%	8.07%	9.24%	6.34%

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 ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × 5,995 ÷ 98,726 = 6.07%

² Adjusted ROA = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total assets
= 100 × 5,995 ÷ 98,726 = 6.07%

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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 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

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

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

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

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)