Stock Analysis on Net
Stock Analysis on Net
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Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Thermo Fisher Scientific Inc., adjustment to net income

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (as reported) 6,375  3,696  2,938  2,225  2,022 
Add: Unrealized gains (losses) on available-for-sale investments —  —  —  (2) (1)
Net income (adjusted) 6,375  3,696  2,938  2,223  2,021 

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Thermo Fisher Scientific Inc., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 19.79% 14.47% 12.06% 10.64% 11.06%
Adjusted net profit margin 19.79% 14.47% 12.06% 10.63% 11.06%
Return on Equity (ROE)
Reported ROE 18.47% 12.45% 10.65% 8.76% 9.39%
Adjusted ROE 18.47% 12.45% 10.65% 8.75% 9.38%
Return on Assets (ROA)
Reported ROA 9.23% 6.33% 5.22% 3.93% 4.40%
Adjusted ROA 9.23% 6.33% 5.22% 3.92% 4.40%

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).

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.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Thermo Fisher Scientific Inc.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.

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

Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 6,375  3,696  2,938  2,225  2,022 
Revenues 32,218  25,542  24,358  20,918  18,274 
Profitability Ratio
Net profit margin1 19.79% 14.47% 12.06% 10.64% 11.06%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 6,375  3,696  2,938  2,223  2,021 
Revenues 32,218  25,542  24,358  20,918  18,274 
Profitability Ratio
Adjusted net profit margin2 19.79% 14.47% 12.06% 10.63% 11.06%

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 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 6,375 ÷ 32,218 = 19.79%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 6,375 ÷ 32,218 = 19.79%

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.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 6,375  3,696  2,938  2,225  2,022 
Shareholders’ equity 34,507  29,675  27,586  25,413  21,539 
Profitability Ratio
ROE1 18.47% 12.45% 10.65% 8.76% 9.39%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 6,375  3,696  2,938  2,223  2,021 
Shareholders’ equity 34,507  29,675  27,586  25,413  21,539 
Profitability Ratio
Adjusted ROE2 18.47% 12.45% 10.65% 8.75% 9.38%

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 × Adjusted net income ÷ Shareholders’ equity
= 100 × 6,375 ÷ 34,507 = 18.47%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Thermo Fisher Scientific Inc.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 6,375  3,696  2,938  2,225  2,022 
Total assets 69,052  58,381  56,232  56,669  45,908 
Profitability Ratio
ROA1 9.23% 6.33% 5.22% 3.93% 4.40%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 6,375  3,696  2,938  2,223  2,021 
Total assets 69,052  58,381  56,232  56,669  45,908 
Profitability Ratio
Adjusted ROA2 9.23% 6.33% 5.22% 3.92% 4.40%

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 × Adjusted net income ÷ Total assets
= 100 × 6,375 ÷ 69,052 = 9.23%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.