Microsoft Excel LibreOffice Calc

Thermo Fisher Scientific Inc. (TMO)

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Ratios (Summary)

Thermo Fisher Scientific Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current ratio 1.73 1.34 1.44 1.38 1.22
Quick ratio 1.01 0.74 0.79 0.72 0.71
Cash ratio 0.34 0.19 0.16 0.11 0.25

Based on: 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), 10-K (filing date: 2015-02-26).

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Thermo Fisher Scientific Inc.’s current ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Thermo Fisher Scientific Inc.’s quick ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Thermo Fisher Scientific Inc.’s cash ratio improved from 2016 to 2017 and from 2017 to 2018.

Current Ratio

Thermo Fisher Scientific Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 10,625  9,421  7,021  5,741  6,540 
Current liabilities 6,147  7,048  4,866  4,147  5,350 
Ratio
Current ratio1 1.73 1.34 1.44 1.38 1.22
Benchmarks
Current Ratio, Competitors
Becton, Dickinson & Co. 1.03 5.58 1.45 1.38 2.74
Intuitive Surgical Inc. 5.28 3.99 5.45 4.46 3.69
Medtronic PLC 2.28 1.75 3.29 3.36 3.82
Stryker Corp. 2.02 2.29 2.50 2.27 2.17
UnitedHealth Group Inc. 0.73 0.73 0.69 0.74 0.77
Current Ratio, Sector
Health Care Equipment & Services 1.14 1.27 1.18 1.31 1.42
Current Ratio, Industry
Health Care 1.52 1.64 1.83 1.73 1.98

Based on: 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), 10-K (filing date: 2015-02-26).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 10,625 ÷ 6,147 = 1.73

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Thermo Fisher Scientific Inc.’s current ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Quick Ratio

Thermo Fisher Scientific Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,103  1,335  786  452  1,344 
Accounts receivable, less allowances 4,136  3,879  3,049  2,545  2,474 
Total quick assets 6,239  5,214  3,835  2,997  3,817 
Current liabilities 6,147  7,048  4,866  4,147  5,350 
Ratio
Quick ratio1 1.01 0.74 0.79 0.72 0.71
Benchmarks
Quick Ratio, Competitors
Becton, Dickinson & Co. 0.50 4.77 0.72 0.70 1.76
Intuitive Surgical Inc. 4.56 3.51 5.00 3.97 3.09
Medtronic PLC 1.71 1.36 2.54 2.68 3.25
Stryker Corp. 1.25 1.43 1.70 1.64 1.47
UnitedHealth Group Inc. 0.61 0.62 0.59 0.61 0.62
Quick Ratio, Sector
Health Care Equipment & Services 0.84 1.00 0.90 1.00 1.09
Quick Ratio, Industry
Health Care 1.13 1.29 1.44 1.33 1.48

Based on: 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), 10-K (filing date: 2015-02-26).

2018 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 6,239 ÷ 6,147 = 1.01

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Thermo Fisher Scientific Inc.’s quick ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Cash Ratio

Thermo Fisher Scientific Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,103  1,335  786  452  1,344 
Total cash assets 2,103  1,335  786  452  1,344 
Current liabilities 6,147  7,048  4,866  4,147  5,350 
Ratio
Cash ratio1 0.34 0.19 0.16 0.11 0.25
Benchmarks
Cash Ratio, Competitors
Becton, Dickinson & Co. 0.17 4.25 0.36 0.33 1.23
Intuitive Surgical Inc. 3.73 2.78 4.28 3.17 2.46
Medtronic PLC 1.11 0.96 1.76 2.12 2.56
Stryker Corp. 0.77 0.80 1.07 1.16 1.12
UnitedHealth Group Inc. 0.27 0.31 0.27 0.30 0.30
Cash Ratio, Sector
Health Care Equipment & Services 0.43 0.62 0.49 0.62 0.69
Cash Ratio, Industry
Health Care 0.73 0.90 1.03 0.94 1.07

Based on: 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), 10-K (filing date: 2015-02-26).

2018 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 2,103 ÷ 6,147 = 0.34

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Thermo Fisher Scientific Inc.’s cash ratio improved from 2016 to 2017 and from 2017 to 2018.