Common-Size Income Statement
Quarterly Data
Thermo Fisher Scientific Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
- Revenue Composition Trends
- Over the observed periods, product revenues as a percentage of total revenues demonstrated a declining trend, starting at 74.32% in March 2020 and gradually decreasing to approximately 57.58% by June 2025. Conversely, service revenues showed an increasing trend, growing from 25.68% in March 2020 to 42.42% in June 2025. This shift indicates a gradual rebalancing from product-based income towards service-oriented revenue streams.
- Cost of Revenues and Gross Profit
- The cost of product revenues displayed variability but generally showed a modest decline relative to total revenues, from -37.56% in March 2020 to levels around -29.84% in June 2025. In contrast, the cost of service revenues increased notably, rising from -18.46% to approximately -29.54% in the same timeframe. Overall, total cost of revenues rose, moving from -56.02% at the start to nearly -59.38% by mid-2025, which exerted downward pressure on gross profit margins. Consequently, gross profit margins as a percentage of revenues decreased from 43.98% in early 2020 to approximately 40.62% by mid-2025, reflecting pressure on profitability at the gross margin level.
- Operating Expenses
- Selling, general and administrative expenses remained relatively stable, fluctuating within a narrow range close to -20% of revenues, with some mild increases observed towards later periods, reaching around -19.71% by June 2025. Research and development expenses remained consistently around -3% of revenues throughout the periods, indicating stable investment in innovation. Restructuring and other costs showed sporadic fluctuations with notable spikes, especially around mid-2021 and early-to-mid 2024, suggesting periods of organizational adjustments impacting expenses intermittently.
- Operating Income and Profitability
- Operating income experienced a peak in late 2020 at approximately 29.11% of revenues, followed by a decline and stabilization around the mid-to-high teens percentage range, generally between 14.5% and 17.7% towards 2025. This pattern indicates that while operating profitability initially improved significantly, it later moderated and stabilized, potentially due to increasing costs and shifting revenue mix.
- Interest Income and Expense
- Interest income showed a general upward trend, increasing from negligible levels near 0.1% in early periods to peaks above 2.7% by 2025, enhancing overall income slightly. Conversely, interest expense fluctuated, but generally increased from about -2% early on to roughly -3.7% by later years, indicating rising financing costs that partially offset gains from interest income.
- Other Income and Tax Provisions
- Other income (expense) entries were volatile, with occasional negative spikes, such as a substantial decline around late 2021, suggesting irregular non-operating impacts. The provision for income taxes varied broadly without a clear trend, ranging mostly between -0.3% and -4.2%, reflecting fluctuations in taxable income or changing tax environments.
- Net Income and Equity Earnings
- Net income as a percentage of revenues followed a trend similar to operating income, peaking in late 2020 at 23.68% before declining and stabilizing near the 14-16% range by mid-2025. The equity in earnings from unconsolidated entities generally contributed negatively, with some periods showing minor positive contributions; this suggests variable performance or valuation impacts from affiliated investments over time.
- Summary
- Overall, the data exhibits a transition in revenue composition favoring service revenues, accompanied by rising cost pressures particularly in service-related expenses. Gross profitability has moderately declined, and operating income has stabilized at lower levels than earlier peaks. Interest expenses are increasing but are partly offset by growing interest income. Net income reflects these operational and financial dynamics, demonstrating resilience despite margin compression. Periodic restructuring costs and irregular other income or expense items suggest occasional operational adjustments affecting financial results.