Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Thermo Fisher Scientific Inc., ROE, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


Net Income Attributable to Thermo Fisher Scientific Inc.
The net income demonstrates an overall upward trend from 2005 to 2024, despite some fluctuations. Starting at $223 million in 2005, net income experienced periods of growth and minor declines, with notable increases after 2013. It peaked significantly in 2020 at $6,375 million and then further reached $7,725 million in 2021. Following this peak, there was a decline to $6,950 million in 2022, with subsequent decreases in 2023 at $5,995 million before a slight recovery to $6,335 million in 2024. This pattern suggests strong growth in profitability, especially in the late 2010s and early 2020s, although some volatility is apparent in the most recent years.
Total Shareholders’ Equity
Shareholders’ equity has grown substantially over the period, beginning at $2,793 million in 2005 and rising steadily each year to reach $49,584 million by 2024. This corresponds to a nearly eighteen-fold increase in equity. Growth appears consistent with no years showing significant erosion, indicating sustained capital accumulation and potentially reinvestment of earnings or equity financing contributing to balance sheet expansion.
Return on Equity (ROE)
The ROE displays considerable variability, initially ranging from about 1.21% in 2006 to 10.65% in 2018, reflecting fluctuating efficiency in generating profit relative to shareholders' equity. From 2014 onward, ROE generally rose, peaking at 18.94% in 2021, aligned with the peaks in net income. However, there was a decline in ROE after 2021, dropping to 15.8% in 2022 and further to approximately 12.8% by 2024. This suggests that despite growing equity, the company experienced diminishing returns on capital invested in the most recent periods, possibly due to the relative decrease in net income or increases in equity outpacing profit growth.
Summary Insight
The data indicates robust growth in profitability and capital base over the examined period, with net income and equity both expanding significantly. While net income showed strong growth especially after 2013, it has experienced some recent volatility. Shareholders’ equity increased steadily, reflecting financial stability and capacity for future investments. ROE trends exhibit a rise aligned with increased profitability but suggest some moderation in efficiency in using equity capital after 2021. Overall, the company demonstrates solid financial growth, tempered by recent challenges in maintaining peak profitability relative to equity.

Comparison to Competitors

Thermo Fisher Scientific Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Thermo Fisher Scientific Inc., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)