Common-Size Balance Sheet: Assets
Thermo Fisher Scientific Inc., common-size consolidated balance sheet: assets
Based on: 10-K (reporting date: 2024-12-31), 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).
The analysis of the financial data indicates discernible trends in asset composition over the observed periods.
- Cash and Cash Equivalents
- There is a notable decreasing trend in cash and cash equivalents as a percentage of total assets, declining from 14.95% in 2020 to 4.12% by the end of 2024. This suggests a reduced liquidity position or reallocation of cash resources over time.
- Short-term Investments
- Short-term investments were not reported until the 2023 period, at which point they accounted for 0% and then increased to 1.6% in 2024. This may indicate a strategic shift towards utilizing liquid investments as part of current asset management.
- Accounts Receivable, Less Allowances
- The proportion of accounts receivable relative to total assets remained relatively stable, fluctuating slightly around 8.3% to 8.4% throughout the years. This stability points to consistent credit and collections management practices.
- Inventories
- Inventories showed a slight decline from 5.83% in 2020 to 5.12% in 2024, indicating modest inventory optimization or turnover improvement within the asset base.
- Contract Assets, Net
- Contract assets have gradually increased from 1.06% to 1.47%, reflecting possible growth in contract-based revenue recognition or deferred revenue components in the business model.
- Other Current Assets
- Other current assets demonstrated a moderate increase from 1.64% in 2020 to 2.02% in 2024, suggesting diversification or expansion of current asset components.
- Current Assets
- Overall, current assets as a percentage of total assets have decreased from 31.8% to 22.75%, driven primarily by significant reductions in cash balances, partially offset by slightly higher short-term investments and other current assets.
- Property, Plant, and Equipment, Net
- There is a steady increase in the share of property, plant, and equipment, rising from 8.56% to approximately 9.56%, implying ongoing capital investment or asset acquisitions contributing to productive capacity.
- Acquisition-related Intangible Assets, Net
- The percentage of acquisition-related intangible assets has experienced a decline from 18.37% in 2020 to 15.96% in 2024, which may indicate amortization or write-downs of such assets or a slowdown in acquisition activity.
- Other Assets
- Other assets have increased gently from 3.56% to 4.62%, pointing to a slight broadening in non-classified long-term assets.
- Goodwill
- Goodwill as a component of total assets has shown a growth trend, rising from 37.71% in 2020 to 47.12% in 2024. This considerable increase reflects significant acquisition activity and the premium paid over net identifiable assets.
- Long-term Assets
- Long-term assets as a whole increased from 68.2% to 77.25% over the period, demonstrating a strategic shift toward asset-heavy investments or acquisitions, thereby reducing the proportion of current assets in the total asset mix.
- Total Assets
- The total assets are consistently represented as 100% throughout the periods, serving as the base for all percentage calculations.
In summary, the data reveals a company increasingly oriented toward long-term investments, especially goodwill, with a reduction in cash holdings and current assets proportion. There is an evident focus on acquisitions, reflected in rising goodwill and changes in intangible assets, while operational assets like property, plant, and equipment experienced moderate growth. The stability in accounts receivable and inventories suggests steady management of working capital components despite these shifts.