Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Thermo Fisher Scientific Inc., long-term (investment) activity ratios
Based on: 10-K (filing date: 2021-02-25), 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Thermo Fisher Scientific Inc.’s net fixed asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Thermo Fisher Scientific Inc.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Thermo Fisher Scientific Inc.’s total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Thermo Fisher Scientific Inc.’s equity turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Net Fixed Asset Turnover
Thermo Fisher Scientific Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 32,218 | 25,542 | 24,358 | 20,918 | 18,274 | |
| Property, plant and equipment, net | 5,912 | 4,749 | 4,165 | 4,047 | 2,578 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 5.45 | 5.38 | 5.85 | 5.17 | 7.09 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 2.89 | 3.06 | 2.97 | 2.61 | 3.20 | |
| Boston Scientific Corp. | — | 5.16 | 5.51 | 5.33 | 5.14 | |
| Danaher Corp. | 6.83 | 7.78 | 7.92 | 7.47 | 7.17 | |
| Edwards Lifesciences Corp. | 3.14 | 4.10 | 4.29 | 5.05 | 5.11 | |
| Intuitive Surgical Inc. | 2.76 | 3.52 | 4.59 | 5.10 | 5.90 | |
| Medtronic PLC | 5.99 | 6.54 | 6.51 | 6.81 | 5.96 | |
| Stryker Corp. | 5.21 | 5.80 | 5.94 | 6.30 | 7.22 | |
| UnitedHealth Group Inc. | 29.64 | 27.60 | 26.59 | 28.54 | 31.18 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | — | 11.07 | 11.21 | 11.25 | 12.00 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | — | 6.02 | 6.11 | 5.89 | 6.07 | |
Based on: 10-K (filing date: 2021-02-25), 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).
1 2020 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 32,218 ÷ 5,912 = 5.45
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Thermo Fisher Scientific Inc.’s net fixed asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Thermo Fisher Scientific Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 32,218 | 25,542 | 24,358 | 20,918 | 18,274 | |
| Property, plant and equipment, net | 5,912 | 4,749 | 4,165 | 4,047 | 2,578 | |
| ROU assets (classified in Other assets) | 775 | 699 | — | — | — | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 6,687 | 5,448 | 4,165 | 4,047 | 2,578 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.82 | 4.69 | 5.85 | 5.17 | 7.09 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Becton, Dickinson & Co. | 2.70 | 3.06 | 2.97 | 2.61 | 3.20 | |
| Boston Scientific Corp. | — | 4.45 | 5.51 | 5.33 | 5.14 | |
| Danaher Corp. | 5.30 | 5.84 | 7.92 | 7.47 | 7.17 | |
| Edwards Lifesciences Corp. | 2.95 | 3.81 | 4.29 | 5.05 | 5.11 | |
| Intuitive Surgical Inc. | 2.66 | 3.32 | 4.59 | 5.10 | 5.90 | |
| Medtronic PLC | 5.02 | 6.54 | 6.51 | 6.81 | 5.96 | |
| Stryker Corp. | 4.52 | 5.04 | 5.94 | 6.30 | 7.22 | |
| UnitedHealth Group Inc. | 19.55 | 18.97 | 26.59 | 28.54 | 31.18 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | — | 9.30 | 11.21 | 11.25 | 12.00 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | — | 5.38 | 6.11 | 5.89 | 6.07 | |
Based on: 10-K (filing date: 2021-02-25), 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).
1 2020 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 32,218 ÷ 6,687 = 4.82
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Thermo Fisher Scientific Inc.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Total Asset Turnover
Thermo Fisher Scientific Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 32,218 | 25,542 | 24,358 | 20,918 | 18,274 | |
| Total assets | 69,052 | 58,381 | 56,232 | 56,669 | 45,908 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.47 | 0.44 | 0.43 | 0.37 | 0.40 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.32 | 0.33 | 0.30 | 0.32 | 0.49 | |
| Boston Scientific Corp. | — | 0.35 | 0.47 | 0.48 | 0.46 | |
| Danaher Corp. | 0.29 | 0.29 | 0.42 | 0.39 | 0.37 | |
| Edwards Lifesciences Corp. | 0.61 | 0.67 | 0.70 | 0.60 | 0.66 | |
| Intuitive Surgical Inc. | 0.39 | 0.46 | 0.47 | 0.54 | 0.42 | |
| Medtronic PLC | 0.32 | 0.34 | 0.33 | 0.30 | 0.29 | |
| Stryker Corp. | 0.42 | 0.49 | 0.50 | 0.56 | 0.55 | |
| UnitedHealth Group Inc. | 1.30 | 1.38 | 1.48 | 1.44 | 1.50 | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | — | 0.71 | 0.75 | 0.71 | 0.74 | |
| Total Asset Turnover, Industry | ||||||
| Health Care | — | 0.51 | 0.57 | 0.51 | 0.53 | |
Based on: 10-K (filing date: 2021-02-25), 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).
1 2020 Calculation
Total asset turnover = Revenues ÷ Total assets
= 32,218 ÷ 69,052 = 0.47
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Thermo Fisher Scientific Inc.’s total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
Equity Turnover
Thermo Fisher Scientific Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 32,218 | 25,542 | 24,358 | 20,918 | 18,274 | |
| Shareholders’ equity | 34,507 | 29,675 | 27,586 | 25,413 | 21,539 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.93 | 0.86 | 0.88 | 0.82 | 0.85 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.72 | 0.82 | 0.76 | 0.93 | 1.64 | |
| Boston Scientific Corp. | — | 0.77 | 1.13 | 1.29 | 1.25 | |
| Danaher Corp. | 0.56 | 0.59 | 0.71 | 0.70 | 0.73 | |
| Edwards Lifesciences Corp. | 0.96 | 1.05 | 1.19 | 1.16 | 1.13 | |
| Intuitive Surgical Inc. | 0.45 | 0.54 | 0.56 | 0.66 | 0.47 | |
| Medtronic PLC | 0.57 | 0.61 | 0.59 | 0.59 | 0.55 | |
| Stryker Corp. | 1.10 | 1.16 | 1.16 | 1.25 | 1.19 | |
| UnitedHealth Group Inc. | 3.90 | 4.17 | 4.35 | 4.19 | 4.81 | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | — | 1.61 | 1.65 | 1.65 | 1.71 | |
| Equity Turnover, Industry | ||||||
| Health Care | — | 1.42 | 1.52 | 1.36 | 1.34 | |
Based on: 10-K (filing date: 2021-02-25), 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).
1 2020 Calculation
Equity turnover = Revenues ÷ Shareholders’ equity
= 32,218 ÷ 34,507 = 0.93
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Thermo Fisher Scientific Inc.’s equity turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |