Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Thermo Fisher Scientific Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Thermo Fisher Scientific Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Thermo Fisher Scientific Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2025-12-31), 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).
The liquidity position of the company demonstrates a generally improving trend over the five-year period. All three liquidity ratios – current, quick, and cash – exhibited increases from 2021 to 2025, although with some fluctuations. This suggests a strengthening ability to meet short-term obligations.
- Current Ratio
- The current ratio experienced a slight decrease from 1.50 in 2021 to 1.48 in 2022. However, it then increased consistently, reaching 1.89 by 2025. This indicates an improving capacity to cover current liabilities with current assets. The increase suggests the company is becoming less reliant on converting inventory into cash to meet its short-term obligations.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, with an initial increase from 1.00 in 2021 to 1.06 in 2022, followed by a rise to 1.27 in 2023. A slight dip to 1.14 occurred in 2024, before recovering to 1.36 in 2025. This demonstrates an improving ability to meet short-term liabilities with its most liquid assets, excluding inventory. The fluctuations are less pronounced than those observed in the current ratio, suggesting a more stable liquid asset position.
- Cash Ratio
- The cash ratio showed the most volatility of the three ratios. It increased from 0.33 in 2021 to 0.50 in 2022 and 0.58 in 2023, then decreased to 0.42 in 2024 before rising again to 0.67 in 2025. This indicates a fluctuating ability to cover immediate liabilities with cash and cash equivalents. The increase in 2025 suggests a bolstering of the company’s most liquid position.
Overall, the trends across all three ratios point to a strengthening liquidity profile. While some year-over-year fluctuations exist, the general direction is positive, indicating improved short-term financial health.
Current Ratio
Thermo Fisher Scientific Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The current ratio exhibited a generally positive trend over the five-year period. Fluctuations were observed, but the ratio consistently remained above 1.0, indicating a sufficient level of current assets to cover current liabilities.
- Overall Trend
- The current ratio demonstrated an initial slight decrease from 1.50 in 2021 to 1.48 in 2022. This was followed by a notable increase to 1.75 in 2023. A modest decline to 1.66 was seen in 2024, before concluding with a further increase to 1.89 in 2025. This suggests improving liquidity towards the end of the analyzed period.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2022 and 2023, with the current ratio rising by 0.27. The smallest change was observed between 2021 and 2022, decreasing by only 0.02. The increase from 2024 to 2025 was 0.23, indicating a substantial improvement in the most recent year.
- Ratio Values
- The current ratio remained within a relatively narrow range, fluctuating between 1.48 and 1.89. The highest value of 1.89 in 2025 suggests a strong short-term financial position, with a comfortable margin of current assets over current liabilities. The lowest value of 1.48 in 2022, while still above 1.0, represents the period with the least liquidity buffer.
The observed trend suggests a strengthening liquidity position over the analyzed period, particularly in the final two years. The consistent values above 1.0 indicate the entity’s ability to meet its short-term obligations.
Quick Ratio
Thermo Fisher Scientific Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quick ratio exhibited a generally positive trend over the five-year period. Initial values were close to parity with current liabilities, but subsequent years demonstrate increasing ability to meet short-term obligations with the most liquid assets.
- Quick Ratio Trend
- The quick ratio began at 1.00 in 2021, indicating the company held $1.00 of quick assets for every $1.00 of current liabilities. A slight increase was observed in 2022, reaching 1.06. This upward momentum continued into 2023, with the ratio rising to 1.27, representing the largest single-year increase in the observed period. A modest decrease to 1.14 occurred in 2024, before a further increase to 1.36 in 2025, the highest value recorded.
Total quick assets and current liabilities both increased over the period, but the growth in quick assets outpaced that of current liabilities, contributing to the improving ratio. The increase in the quick ratio suggests a strengthening short-term financial position.
- Asset and Liability Relationship
- Total quick assets increased from $13,422 million in 2021 to $20,671 million in 2025. Current liabilities also increased, moving from $13,436 million in 2021 to $15,189 million in 2025. However, the proportional increase in quick assets was greater, resulting in the observed improvements in the quick ratio.
The quick ratio consistently remained above 1.00 from 2022 onwards, suggesting the company possesses sufficient liquid assets to cover its immediate liabilities. The 2025 value of 1.36 indicates a comfortable margin of safety regarding short-term liquidity.
Cash Ratio
Thermo Fisher Scientific Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuating performance over the five-year period. Initially, the ratio increased before declining and then rising again, indicating shifts in the company’s most liquid asset coverage of its immediate obligations.
- Overall Trend
- The cash ratio demonstrated volatility between 2021 and 2025. It began at 0.33 in 2021, increased to a peak of 0.58 in 2023, decreased to 0.42 in 2024, and then rose to 0.67 in 2025. This suggests varying degrees of ability to meet short-term liabilities with only cash and cash equivalents.
- Year-over-Year Changes
- From 2021 to 2022, the cash ratio increased by 0.17, reflecting a stronger immediate liquidity position. A further increase of 0.08 was observed from 2022 to 2023, continuing this positive trend. However, a decrease of 0.16 occurred between 2023 and 2024, signaling a weakening in the ability to cover current liabilities with available cash. The ratio rebounded strongly in 2025, increasing by 0.25, indicating a substantial improvement in short-term liquidity.
- Relationship to Underlying Components
- The increase in the cash ratio from 2021 to 2023 was supported by growth in total cash assets, which rose from US$4,477 million to US$8,080 million over the period. While current liabilities also increased, the growth in cash assets outpaced the growth in current liabilities. The subsequent decline in 2024 coincided with a decrease in total cash assets to US$5,570 million, while current liabilities remained relatively stable. The strong increase in 2025 was driven by a significant rise in total cash assets to US$10,105 million, coupled with a moderate increase in current liabilities.
The observed fluctuations in the cash ratio suggest the company’s management of liquid assets and short-term obligations is dynamic. The substantial increase in 2025 indicates a strengthened immediate liquidity position, while the dip in 2024 warrants further investigation into the reasons for the reduced cash holdings.