Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Liquidity Ratios (Summary)
Thermo Fisher Scientific Inc., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio shows a declining trend from 2.13 at the end of 2020 to 1.48 at the end of 2022, indicating a reduction in current assets relative to current liabilities during this period. However, there is a noticeable recovery afterward, with the ratio rising to 1.75 in 2023 before slightly decreasing to 1.66 in 2024. Overall, the current ratio exhibits some volatility but remains above 1.5 in the latest years, suggesting a generally adequate level of short-term liquidity.
- Quick Ratio
- The quick ratio declines sharply from 1.63 in 2020 to 1.00 in 2021, reflecting a substantial decrease in liquid assets excluding inventory relative to current liabilities. A modest recovery occurs over the next two years, reaching 1.27 by the end of 2023, followed by a slight decrease to 1.14 in 2024. Despite fluctuations, the quick ratio stays above 1.0 in the latter periods, indicating the company maintains the ability to cover current liabilities with near-cash assets.
- Cash Ratio
- The cash ratio shows a pronounced downward trend from 1.00 in 2020 to 0.33 in 2021, signaling a significant reduction in cash and cash equivalents relative to current liabilities. Although this ratio improves somewhat in 2022 and 2023, reaching 0.58, it falls again to 0.42 in 2024. This ratio remains below 0.6 in recent years, suggesting a relatively lower cushion of cash available to meet short-term obligations immediately.
Current Ratio
Thermo Fisher Scientific Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Current Ratio, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The value of current assets fluctuated over the analyzed periods. Starting at 21,957 million US dollars at the end of 2020, it saw a decline in 2021 to 20,113 million. A significant increase followed in 2022, reaching 25,229 million US dollars, before experiencing minor decreases in 2023 and 2024, settling at 24,589 million and 22,137 million respectively.
- Current Liabilities
- Current liabilities demonstrated an overall upward trend with some variability. From 10,304 million US dollars in 2020, there was an increase to 13,436 million in 2021. This was followed by a notable surge to 17,010 million in 2022. However, in the subsequent years, liabilities declined, moving to 14,012 million in 2023 and further to 13,332 million in 2024.
- Current Ratio
- The current ratio exhibited a declining pattern early in the period, dropping from 2.13 in 2020 to 1.5 in 2021, and remaining relatively stable at 1.48 in 2022. This was followed by recovery in 2023 to 1.75, and a slight decrease to 1.66 in 2024. Despite these fluctuations, the ratio remained above 1.4 throughout, indicating a consistent short-term liquidity position above the minimum threshold considered safe.
Quick Ratio
Thermo Fisher Scientific Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Accounts receivable, less allowances | ||||||
| Contract assets, net | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Quick Ratio, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets experienced fluctuations over the five-year period. Starting at 16,797 million US dollars in 2020, there was a decline in 2021 to 13,422 million. This was followed by a significant increase in 2022 to 17,951 million, nearly recovering to the 2020 level. In 2023, the value slightly decreased to 17,744 million and subsequently declined more noticeably to 15,196 million in 2024. Overall, the total quick assets showed volatility with a peak in 2022 and a downward correction thereafter.
- Current Liabilities
- Current liabilities showed a general upward trend from 2020 to 2022, starting at 10,304 million US dollars and rising sharply to 17,010 million by 2022. In 2023, current liabilities decreased to 14,012 million and continued a slight decline to 13,332 million in 2024. Despite the recent declines, the level of current liabilities in 2024 remained above the 2020 figure, indicating higher short-term obligations compared to the beginning of the period.
- Quick Ratio
- The quick ratio, which indicates short-term liquidity, declined substantially from 1.63 in 2020 to 1.00 in 2021, reflecting a tightening liquidity position. It then modestly improved in 2022 to 1.06, followed by a further increase to 1.27 in 2023, suggesting an enhanced capability to cover current liabilities with quick assets. However, in 2024, the ratio declined again to 1.14, indicating a slight reduction in liquidity but remaining above the one-to-one threshold, which generally suggests sufficient liquidity.
- Summary of Financial Position Trends
- Over the five years, the company’s short-term assets and liabilities exhibited notable variability. Quick assets and current liabilities both peaked in 2022, with liabilities rising more sharply, which temporarily compressed the quick ratio to near parity in 2021. Following this period, quick assets and liabilities both decreased, with liquidity improving through 2023 before a slight weakening in 2024. Despite these fluctuations, the quick ratio consistently remained around or above 1.0 from 2021 onward, indicating a generally stable liquidity position capable of meeting short-term obligations.
Cash Ratio
Thermo Fisher Scientific Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Cash Ratio, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrated a fluctuating trend over the five-year period. Starting at 10,325 million USD in 2020, there was a significant decrease to 4,477 million USD in 2021, followed by a notable recovery to 8,524 million USD in 2022. Subsequently, cash assets slightly declined to 8,080 million USD in 2023 and further decreased to 5,570 million USD by the end of 2024. Overall, the cash reserves decreased compared to the initial value in 2020, indicating volatility and potential changes in liquidity management or cash generation capabilities.
- Current Liabilities
- Current liabilities exhibited an increasing trend from 2020 through 2022, rising from 10,304 million USD to a peak of 17,010 million USD in 2022. This was followed by a decline to 14,012 million USD in 2023 and a further decrease to 13,332 million USD in 2024. Despite the reduction in the last two years, the level of current liabilities in 2024 remains higher than that in 2020, suggesting an overall increase in short-term obligations over the analyzed period.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, declined sharply from a ratio of 1 in 2020 to 0.33 in 2021. It then improved to 0.5 in 2022 and continued a gradual increase to 0.58 in 2023. However, the ratio dropped again to 0.42 in 2024. These fluctuations indicate variability in liquidity strength, with a notable weakening in 2021, moderate recovery in the following years, and a renewed decrease in the latest period. The ratio consistently remains below 1 after 2020, reflecting that cash assets alone are insufficient to cover current liabilities fully.