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

Thermo Fisher Scientific Inc. (NYSE:TMO)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (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
Activity Ratio
Total Asset Turnover
Reported 0.44 0.43 0.37 0.40 0.41
Adjusted 0.44 0.43 0.37 0.39 0.41
Liquidity Ratio
Current Ratio
Reported 1.92 1.73 1.34 1.44 1.38
Adjusted 1.95 1.78 1.37 1.49 1.42
Solvency Ratios
Debt to Equity
Reported 0.60 0.69 0.83 0.77 0.59
Adjusted 0.59 0.66 0.78 0.72 0.55
Debt to Capital
Reported 0.37 0.41 0.45 0.44 0.37
Adjusted 0.37 0.40 0.44 0.42 0.36
Financial Leverage
Reported 1.97 2.04 2.23 2.13 1.92
Adjusted 1.84 1.91 2.04 1.93 1.73
Profitability Ratios
Net Profit Margin
Reported 14.47% 12.06% 10.64% 11.06% 11.64%
Adjusted 11.59% 8.53% 5.80% 4.48% 3.79%
Return on Equity (ROE)
Reported 12.45% 10.65% 8.76% 9.39% 9.25%
Adjusted 9.38% 6.98% 4.33% 3.41% 2.71%
Return on Assets (ROA)
Reported 6.33% 5.22% 3.93% 4.40% 4.83%
Adjusted 5.11% 3.67% 2.13% 1.77% 1.56%

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 current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Thermo Fisher Scientific Inc.’s adjusted current ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Thermo Fisher Scientific Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Thermo Fisher Scientific Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted 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
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
Selected Financial Data (US$ in millions)
Revenues 25,542  24,358  20,918  18,274  16,965 
Adjusted total assets2 57,949  56,659  57,043  46,280  41,150 
Activity Ratio
Adjusted total asset turnover3 0.44 0.43 0.37 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).

1 2019 Calculation
Total asset turnover = Revenues ÷ Total assets
= 25,542 ÷ 58,381 = 0.44

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 25,542 ÷ 57,949 = 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 Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 11,893  10,625  9,421  7,021  5,741 
Current liabilities 6,197  6,147  7,048  4,866  4,147 
Liquidity Ratio
Current ratio1 1.92 1.73 1.34 1.44 1.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 12,034  10,776  9,561  7,127  5,839 
Adjusted current liabilities3 6,163  6,067  6,972  4,794  4,116 
Liquidity Ratio
Adjusted current ratio4 1.95 1.78 1.37 1.49 1.42

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 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,893 ÷ 6,197 = 1.92

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 12,034 ÷ 6,163 = 1.95

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Thermo Fisher Scientific Inc.’s adjusted current 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
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
Selected Financial Data (US$ in millions)
Adjusted total debt2 18,490  19,699  21,742  17,277  13,098 
Adjusted shareholders’ equity3 31,562  29,741  27,982  23,971  23,750 
Solvency Ratio
Adjusted debt to equity4 0.59 0.66 0.78 0.72 0.55

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 2019 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 17,752 ÷ 29,675 = 0.60

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 18,490 ÷ 31,562 = 0.59

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 17,752  18,990  21,008  16,628  12,527 
Total capital 47,427  46,576  46,421  38,167  33,877 
Solvency Ratio
Debt to capital1 0.37 0.41 0.45 0.44 0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 18,490  19,699  21,742  17,277  13,098 
Adjusted total capital3 50,052  49,440  49,724  41,248  36,848 
Solvency Ratio
Adjusted debt to capital4 0.37 0.40 0.44 0.42 0.36

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 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 17,752 ÷ 47,427 = 0.37

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 18,490 ÷ 50,052 = 0.37

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 58,381  56,232  56,669  45,908  40,889 
Shareholders’ equity 29,675  27,586  25,413  21,539  21,350 
Solvency Ratio
Financial leverage1 1.97 2.04 2.23 2.13 1.92
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 57,949  56,659  57,043  46,280  41,150 
Adjusted shareholders’ equity3 31,562  29,741  27,982  23,971  23,750 
Solvency Ratio
Adjusted financial leverage4 1.84 1.91 2.04 1.93 1.73

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 2019 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 58,381 ÷ 29,675 = 1.97

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 57,949 ÷ 31,562 = 1.84

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Thermo Fisher Scientific Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 3,696  2,938  2,225  2,022  1,975 
Revenues 25,542  24,358  20,918  18,274  16,965 
Profitability Ratio
Net profit margin1 14.47% 12.06% 10.64% 11.06% 11.64%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,961  2,077  1,213  818  644 
Revenues 25,542  24,358  20,918  18,274  16,965 
Profitability Ratio
Adjusted net profit margin3 11.59% 8.53% 5.80% 4.48% 3.79%

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 2019 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 3,696 ÷ 25,542 = 14.47%

2 Adjusted net income. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 2,961 ÷ 25,542 = 11.59%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Thermo Fisher Scientific Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 3,696  2,938  2,225  2,022  1,975 
Shareholders’ equity 29,675  27,586  25,413  21,539  21,350 
Profitability Ratio
ROE1 12.45% 10.65% 8.76% 9.39% 9.25%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,961  2,077  1,213  818  644 
Adjusted shareholders’ equity3 31,562  29,741  27,982  23,971  23,750 
Profitability Ratio
Adjusted ROE4 9.38% 6.98% 4.33% 3.41% 2.71%

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 2019 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 3,696 ÷ 29,675 = 12.45%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 2,961 ÷ 31,562 = 9.38%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Thermo Fisher Scientific Inc.’s adjusted ROE 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
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
Selected Financial Data (US$ in millions)
Adjusted net income2 2,961  2,077  1,213  818  644 
Adjusted total assets3 57,949  56,659  57,043  46,280  41,150 
Profitability Ratio
Adjusted ROA4 5.11% 3.67% 2.13% 1.77% 1.56%

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 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 3,696 ÷ 58,381 = 6.33%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,961 ÷ 57,949 = 5.11%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Thermo Fisher Scientific Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.