Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Thermo Fisher Scientific Inc., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.92 | 1.73 | 1.34 | 1.44 | 1.38 | |
| Quick ratio | 1.09 | 1.01 | 0.74 | 0.79 | 0.72 | |
| Cash ratio | 0.39 | 0.34 | 0.19 | 0.16 | 0.11 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Thermo Fisher Scientific Inc.’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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 improved from 2017 to 2018 and from 2018 to 2019. |
| 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 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Thermo Fisher Scientific Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 1.18 | 1.03 | 5.58 | 1.45 | 1.38 | |
| Boston Scientific Corp. | 0.97 | 0.76 | 0.68 | 0.90 | 1.43 | |
| Danaher Corp. | 5.19 | 1.47 | 1.43 | 0.97 | 1.27 | |
| Intuitive Surgical Inc. | 4.53 | 5.28 | 3.99 | 5.45 | 4.46 | |
| Medtronic PLC | 2.59 | 2.28 | 1.75 | 3.29 | 3.36 | |
| Stryker Corp. | 2.58 | 2.02 | 2.29 | 2.50 | 2.27 | |
| UnitedHealth Group Inc. | 0.69 | 0.73 | 0.73 | 0.69 | 0.74 | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.33 | 1.14 | 1.24 | 1.15 | 1.31 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.49 | 1.53 | 1.62 | 1.76 | 1.72 | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Thermo Fisher Scientific Inc.’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Thermo Fisher Scientific Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,399 | 2,103 | 1,335 | 786 | 452 | |
| Accounts receivable, less allowances | 4,349 | 4,136 | 3,879 | 3,049 | 2,545 | |
| Total quick assets | 6,748 | 6,239 | 5,214 | 3,835 | 2,997 | |
| Current liabilities | 6,197 | 6,147 | 7,048 | 4,866 | 4,147 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.09 | 1.01 | 0.74 | 0.79 | 0.72 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.52 | 0.50 | 4.77 | 0.72 | 0.70 | |
| Boston Scientific Corp. | 0.42 | 0.33 | 0.31 | 0.47 | 0.66 | |
| Danaher Corp. | 4.68 | 0.88 | 0.87 | 0.60 | 0.77 | |
| Intuitive Surgical Inc. | 3.75 | 4.56 | 3.51 | 5.00 | 3.97 | |
| Medtronic PLC | 1.90 | 1.71 | 1.36 | 2.54 | 2.68 | |
| Stryker Corp. | 1.66 | 1.25 | 1.43 | 1.70 | 1.64 | |
| UnitedHealth Group Inc. | 0.58 | 0.61 | 0.62 | 0.59 | 0.61 | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.01 | 0.82 | 0.95 | 0.85 | 0.97 | |
| Quick Ratio, Industry | ||||||
| Health Care | 1.13 | 1.12 | 1.24 | 1.36 | 1.32 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 6,748 ÷ 6,197 = 1.09
2 Click competitor name to see calculations.
| Liquidity 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 improved from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Thermo Fisher Scientific Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,399 | 2,103 | 1,335 | 786 | 452 | |
| Total cash assets | 2,399 | 2,103 | 1,335 | 786 | 452 | |
| Current liabilities | 6,197 | 6,147 | 7,048 | 4,866 | 4,147 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.39 | 0.34 | 0.19 | 0.16 | 0.11 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.11 | 0.17 | 4.25 | 0.36 | 0.33 | |
| Boston Scientific Corp. | 0.04 | 0.03 | 0.03 | 0.05 | 0.13 | |
| Danaher Corp. | 4.04 | 0.16 | 0.13 | 0.14 | 0.13 | |
| Intuitive Surgical Inc. | 3.13 | 3.73 | 2.78 | 4.28 | 3.17 | |
| Medtronic PLC | 1.16 | 1.11 | 0.96 | 1.76 | 2.12 | |
| Stryker Corp. | 1.01 | 0.77 | 0.80 | 1.07 | 1.16 | |
| UnitedHealth Group Inc. | 0.23 | 0.27 | 0.31 | 0.27 | 0.30 | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.56 | 0.40 | 0.56 | 0.44 | 0.56 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.73 | 0.72 | 0.85 | 0.95 | 0.92 | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 2,399 ÷ 6,197 = 0.39
2 Click competitor name to see calculations.
| Liquidity 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 2017 to 2018 and from 2018 to 2019. |