Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Thermo Fisher Scientific Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Product revenues	25,034)	25,243)	28,548)	30,361)	25,306)
Service revenues	17,845)	17,614)	16,367)	8,850)	6,912)
Revenues	42,879)	42,857)	44,915)	39,211)	32,218)
Cost of product revenues	(12,523)	(13,168)	(14,247)	(13,594)	(11,407)
Cost of service revenues	(12,654)	(12,589)	(11,697)	(5,979)	(4,807)
Cost of revenues	(25,177)	(25,757)	(25,944)	(19,573)	(16,214)
Gross profit	17,702)	17,100)	18,971)	19,638)	16,004)
Selling, general and administrative expenses	(8,595)	(8,445)	(8,993)	(8,007)	(6,930)
Research and development expenses	(1,390)	(1,337)	(1,471)	(1,406)	(1,181)
Restructuring and other costs	(380)	(459)	(114)	(197)	(99)
Operating income	7,337)	6,859)	8,393)	10,028)	7,794)
Interest income	1,078)	879)	272)	43)	65)
Interest expense	(1,390)	(1,375)	(726)	(536)	(553)
Other income (expense)	12)	(65)	(104)	(694)	(76)
Income before income taxes	7,037)	6,298)	7,835)	8,841)	7,230)
Provision for income taxes	(657)	(284)	(703)	(1,109)	(850)
Equity in losses of unconsolidated entities	(42)	(59)	(172)	(4)	(3)
Net income	6,338)	5,955)	6,960)	7,728)	6,377)
Net (income) losses attributable to noncontrolling interests and redeemable noncontrolling interest	(3)	40)	(10)	(3)	(2)
Net income attributable to Thermo Fisher Scientific Inc.	6,335)	5,995)	6,950)	7,725)	6,375)

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 financial data reveals several key trends and changes over the five-year period analyzed. Total revenues showed an overall increasing pattern from 32,218 million US dollars in 2020 to a peak of 44,915 million US dollars in 2022, followed by a slight decline and stabilization around 42,857 to 42,879 million US dollars in 2023 and 2024 respectively. This growth was primarily driven by a significant increase in service revenues, which more than doubled from 6,912 million US dollars in 2020 to 17,845 million US dollars in 2024. Conversely, product revenues experienced a rise in 2021 but subsequently decreased year-over-year, returning to near 2020 levels by 2024.

Cost trends align with revenue changes but reveal some improvements in cost management. Cost of revenues rose in line with increased sales, peaking in 2022 at 25,944 million US dollars before slightly decreasing to 25,177 million US dollars in 2024. Both cost of product revenues and cost of service revenues followed similar trajectories, with the cost of product revenues declining steadily after 2022 and cost of service revenues stabilizing after sharp growth.

Gross profit showed a peak in 2021 at 19,638 million US dollars but declined thereafter to a low of 17,100 million US dollars in 2023 before recovering slightly to 17,702 million in 2024. This trend suggests margin pressure in recent years despite growing revenues. Selling, general and administrative expenses increased until 2022 but then decreased slightly, indicating some cost containment efforts. Research and development expenses remained relatively stable throughout the period, reflecting consistent investment in innovation. Restructuring and other costs fluctuated, with a notable increase in 2023.

Operating income rose steadily to a high of 10,028 million US dollars in 2021 before declining to 6,859 million in 2023 and partially recovering to 7,337 million in 2024. This pattern corresponds with the fluctuations seen in gross profit and operating expenses. Interest income has increased substantially since 2020, reaching 1,078 million US dollars in 2024, while interest expense doubled from 553 million US dollars in 2020 to 1,390 million in 2024, worsening the net interest position.

Other income and expenses varied, with a notably negative figure in 2021 but a positive balance by 2024. Income before income taxes peaked in 2021 at 8,841 million US dollars, then decreased and showed some recovery by the end of the period. Provision for income taxes dropped significantly in 2023 but increased again in 2024.

Equity losses of unconsolidated entities increased substantially in 2022, suggesting challenges with investments or partnerships during that year, but improved slightly afterward. Net income followed a similar trend to operating income, peaking in 2021 and declining afterwards with a small rebound in 2024. The net income attributable to the company mirrors this pattern closely. Notably, there was a small positive adjustment in noncontrolling interests in 2023, which did not persist.

Revenue composition: Service revenues grew rapidly, becoming a larger component of total revenue, while product revenues declined after 2021.
Cost management: Costs increased with revenues but showed signs of moderation post-2022, contributing to relatively stable gross profit margins.
Profitability: Operating income and net income peaked in 2021 but faced declines in subsequent years, with partial recovery by 2024, reflecting mixed operational performance.
Interest and other income/expenses: Interest income improved notably, but interest expenses increased significantly, impacting net financial results. Other income/expense items fluctuated, recovering from a negative position.
Income taxes and equity losses: Tax provision varied, with a significant decrease in 2023. Equity losses spiked in 2022 but improved afterward, influencing net income volatility.

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Thermo Fisher Scientific Inc. (NYSE:TMO)

Income Statement