Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Operating Leases

Advanced level

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Thermo Fisher Scientific Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total undiscounted future operating lease payments 789  806  716  628 
Discount rate1 3.18% 2.83% 2.78% 2.75%
 
Total present value of future operating lease payments 709  734  649  571 

Based on: 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), 10-K (filing date: 2016-02-25).

1 Weighted-average interest rate for Thermo Fisher Scientific Inc.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.18%
2019 192  2019 192  186 
2020 158  2020 158  148 
2021 118  2021 118  107 
2022 86  2022 86  76 
2023 58  2023 58  50 
2024 and thereafter 177  2024 58  48 
2025 58  47 
2026 58  45 
2027
Total: 789  789  709 

Based on: 10-K (filing date: 2019-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.83%
2018 188  2018 188  183 
2019 154  2019 154  146 
2020 123  2020 123  113 
2021 92  2021 92  82 
2022 80  2022 80  70 
2023 and thereafter 169  2023 80  68 
2024 80  66 
2025
Total: 806  806  734 

Based on: 10-K (filing date: 2018-02-28).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.78%
2017 164  2017 164  159 
2018 133  2018 133  126 
2019 103  2019 103  95 
2020 80  2020 80  71 
2021 60  2021 60  52 
2022 and thereafter 177  2022 60  51 
2023 60  50 
2024 56  45 
Total: 716  716  649 

Based on: 10-K (filing date: 2017-02-28).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.75%
2016 144  2016 144  140 
2017 119  2017 119  113 
2018 94  2018 94  86 
2019 72  2019 72  64 
2020 51  2020 51  44 
2021 and thereafter 149  2021 51  43 
2022 51  42 
2023 47  38 
Total: 628  628  571 

Based on: 10-K (filing date: 2016-02-25).


Adjustments to Financial Statements for Operating Leases

Thermo Fisher Scientific Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 58,381  56,232  56,669  45,908  40,889 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  709  734  649  571 
Total assets (adjusted) 58,381  56,941  57,403  46,557  41,460 
Adjustment to Total Debt
Total debt (as reported) 17,752  18,990  21,008  16,628  12,527 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  709  734  649  571 
Add: Current operating lease liabilities (classified in Other accrued expenses) 167  —  —  —  — 
Add: Long-term operating lease liabilities (classified in Other long-term liabilities) 571  —  —  —  — 
Total debt (adjusted) 18,490  19,699  21,742  17,277  13,098 

Based on: 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), 10-K (filing date: 2016-02-25).

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 LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover1
Reported total asset turnover 0.44 0.43 0.37 0.40 0.41
Adjusted total asset turnover 0.44 0.43 0.36 0.39 0.41
Debt to Equity2
Reported debt to equity 0.60 0.69 0.83 0.77 0.59
Adjusted debt to equity 0.62 0.71 0.86 0.80 0.61
Return on Assets3 (ROA)
Reported ROA 6.33% 5.22% 3.93% 4.40% 4.83%
Adjusted ROA 6.33% 5.16% 3.88% 4.34% 4.76%

Based on: 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), 10-K (filing date: 2016-02-25).

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 improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Thermo Fisher Scientific Inc.’s adjusted debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues 25,542  24,358  20,918  18,274  16,965 
Total assets 58,381  56,232  56,669  45,908  40,889 
Activity Ratio
Total asset turnover1 0.44 0.43 0.37 0.40 0.41
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 25,542  24,358  20,918  18,274  16,965 
Adjusted total assets 58,381  56,941  57,403  46,557  41,460 
Activity Ratio
Adjusted total asset turnover2 0.44 0.43 0.36 0.39 0.41

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 25,542 ÷ 58,381 = 0.44

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 25,542 ÷ 58,381 = 0.44

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 improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt 17,752  18,990  21,008  16,628  12,527 
Shareholders’ equity 29,675  27,586  25,413  21,539  21,350 
Solvency Ratio
Debt to equity1 0.60 0.69 0.83 0.77 0.59
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 18,490  19,699  21,742  17,277  13,098 
Shareholders’ equity 29,675  27,586  25,413  21,539  21,350 
Solvency Ratio
Adjusted debt to equity2 0.62 0.71 0.86 0.80 0.61

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 17,752 ÷ 29,675 = 0.60

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 18,490 ÷ 29,675 = 0.62

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.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 3,696  2,938  2,225  2,022  1,975 
Total assets 58,381  56,232  56,669  45,908  40,889 
Profitability Ratio
ROA1 6.33% 5.22% 3.93% 4.40% 4.83%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 3,696  2,938  2,225  2,022  1,975 
Adjusted total assets 58,381  56,941  57,403  46,557  41,460 
Profitability Ratio
Adjusted ROA2 6.33% 5.16% 3.88% 4.34% 4.76%

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 3,696 ÷ 58,381 = 6.33%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 3,696 ÷ 58,381 = 6.33%

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 2017 to 2018 and from 2018 to 2019.