Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Thermo Fisher Scientific Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 98,726 97,154 95,123 69,052 58,381
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 98,726 97,154 95,123 69,052 58,381
Adjustment to Total Debt
Total debt (as reported) 34,917 34,488 34,870 21,735 17,752
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Operating lease liabilities, current (included in Other accrued expenses) 263 272 266 184 167
Add: Operating lease liabilities, noncurrent (included in Other long-term liabilities) 1,244 1,313 1,203 626 571
Total debt (adjusted) 36,424 36,073 36,339 22,545 18,490

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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Thermo Fisher Scientific Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.43 0.46 0.41 0.47 0.44
Adjusted total asset turnover 0.43 0.46 0.41 0.47 0.44
Debt to Equity2
Reported debt to equity 0.75 0.78 0.85 0.63 0.60
Adjusted debt to equity 0.78 0.82 0.89 0.65 0.62
Return on Assets3 (ROA)
Reported ROA 6.07% 7.15% 8.12% 9.23% 6.33%
Adjusted ROA 6.07% 7.15% 8.12% 9.23% 6.33%

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 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Thermo Fisher Scientific Inc. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as 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


Adjusted Total Asset Turnover

Microsoft Excel
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 for Operating Leases
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 69,052 58,381
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

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.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 34,917 34,488 34,870 21,735 17,752
Total Thermo Fisher Scientific Inc. shareholders’ equity 46,735 43,978 40,793 34,507 29,675
Solvency Ratio
Debt to equity1 0.75 0.78 0.85 0.63 0.60
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 36,424 36,073 36,339 22,545 18,490
Total Thermo Fisher Scientific Inc. shareholders’ equity 46,735 43,978 40,793 34,507 29,675
Solvency Ratio
Adjusted debt to equity2 0.78 0.82 0.89 0.65 0.62

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 Debt to equity = Total debt ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 34,917 ÷ 46,735 = 0.75

2 Adjusted debt to equity = Adjusted total debt ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 36,424 ÷ 46,735 = 0.78

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Thermo Fisher Scientific Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
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 for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc. 5,995 6,950 7,725 6,375 3,696
Adjusted total assets 98,726 97,154 95,123 69,052 58,381
Profitability Ratio
Adjusted ROA2 6.07% 7.15% 8.12% 9.23% 6.33%

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

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.