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.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
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Long-term Activity Ratios (Summary)
Thermo Fisher Scientific Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
The financial ratios exhibit several observable trends over the five-year period analyzed.
- Net fixed asset turnover
- The ratio shows a gradual decline from 5.45 in 2020 to 4.71 in 2021, followed by a moderate recovery to 4.84 in 2022. Subsequently, there is another decline to 4.54 in 2023, with a slight increase to 4.61 in 2024. Overall, the net fixed asset turnover ratio indicates a slight downward trend with some fluctuations, suggesting a modest reduction in the efficiency of fixed asset utilization over time.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The adjusted net fixed asset turnover ratio, which accounts for operating leases and right-of-use assets, follows a pattern similar to the standard net fixed asset turnover but at consistently lower levels. It declines from 4.82 in 2020 to a low of 3.89 in 2023 before rising slightly to 3.97 in 2024. This trend points to a gradual decrease in asset turnover efficiency when considering leased assets, reflecting the impact of lease capitalization on asset base and turnover calculations.
- Total asset turnover
- This ratio experiences a decline from 0.47 in 2020 to 0.41 in 2021, then recovers to 0.46 in 2022. The following two years see a mild decrease to 0.43 in 2023 and a marginal rebound to 0.44 in 2024. The overall trend is relatively stable, with minor fluctuations indicating consistent but slightly diminished efficiency in generating revenue from total assets.
- Equity turnover
- The equity turnover ratio shows a marginal upward trend from 0.93 in 2020 to a peak of 1.02 in 2022. Afterward, it declines to 0.92 in 2023 and further to 0.86 in 2024. This pattern suggests an initial improvement in the utilization of shareholders’ equity to generate revenue, followed by a reduction in effectiveness during the last two years of the period.
Net Fixed Asset Turnover
Thermo Fisher Scientific Inc., net fixed asset turnover 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) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, 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. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, 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
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues increased significantly from 32,218 million USD in 2020 to a peak of 44,915 million USD in 2022, reflecting strong growth over the initial three-year period. However, a decline occurred after 2022, with revenues decreasing to 42,857 million USD in 2023 and then stabilizing around the same level at 42,879 million USD in 2024. This suggests a slowing growth momentum or challenges in maintaining the previous upward trajectory.
- Property, Plant and Equipment (Net)
- The net value of property, plant, and equipment rose steadily from 5,912 million USD in 2020 to 9,280 million USD by 2022, indicating ongoing investment in fixed assets. Growth continued but at a slower pace through 2023 and 2024, with values reaching 9,448 million USD and then slightly decreasing to 9,306 million USD in the final year. This trend points to substantial capital expenditure initially, followed by a plateau or mild reduction in fixed assets in later periods.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed a declining trend over the period analyzed. Starting at 5.45 in 2020, the ratio dropped to 4.71 in 2021 and then marginally improved to 4.84 in 2022 before declining again to 4.54 in 2023. A slight recovery to 4.61 was observed in 2024 but remained well below the 2020 level. This decrease in turnover indicates that the company generated less revenue per unit of net fixed assets over time, which may reflect decreased operational efficiency or underutilization of fixed assets relative to earlier years.
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease ROU assets (included in Other assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a strong upward trajectory from 2020 to 2022, increasing from $32,218 million to $44,915 million. However, in the subsequent years 2023 and 2024, revenue stabilized around the $42,857 to $42,879 million range, indicating a plateau after rapid growth.
- Property, Plant, and Equipment
- The net value of property, plant, and equipment rose significantly from $6,687 million in 2020 to $11,004 million in 2023, reflecting substantial investment in fixed assets. In 2024, a slight decrease to $10,795 million occurred, which might suggest asset disposals or revaluations.
- Net Fixed Asset Turnover
- This ratio, which measures the efficiency in using fixed assets to generate revenue, declined from 4.82 in 2020 to 3.98 in 2021, indicating decreased asset utilization efficiency. It improved slightly in 2022 to 4.13 but fell again to 3.89 in 2023 before a modest increase to 3.97 in 2024. Overall, asset turnover remains lower than the 2020 level, pointing to a relative decline in revenue generated per unit of fixed assets.
- Overall Insights
- The company experienced rapid revenue growth alongside rising investments in fixed assets until 2022. Since then, revenues have plateaued, while fixed assets have slightly decreased after peaking, and asset turnover ratios have remained below earlier levels. This suggests that recent investments have not yet translated into increased efficiency or higher revenue growth, indicating potential challenges in asset utilization or market conditions.
Total Asset Turnover
Thermo Fisher Scientific Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, 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. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, 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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period under review. Revenues demonstrated a marked increase from 2020 through 2022, rising from $32,218 million to a peak of $44,915 million. However, the period from 2022 to 2024 shows a stagnation in revenue generation, with figures plateauing around $42,857 million to $42,879 million.
Total assets exhibited a generally upward trajectory from 2020 to 2023, increasing significantly from $69,052 million to $98,726 million, indicating growth in the asset base. A slight decline is observed in 2024, where total assets decreased marginally to $97,321 million.
The total asset turnover ratio, which measures efficiency in using assets to generate revenue, fluctuates moderately over the years. Starting at 0.47 in 2020, the ratio dips to 0.41 in 2021, recovers somewhat to 0.46 in 2022, and then slightly declines again to values in the range of 0.43 to 0.44 through 2023 and 2024. This suggests some variability in asset utilization efficiency, with no clear improvement trend toward higher operational effectiveness during the period.
- Revenue Trends
- Strong growth from 2020 to 2022, followed by stabilization in the subsequent two years.
- Asset Growth
- Consistent increase in total assets up to 2023, with a minor contraction in 2024.
- Asset Turnover Ratio
- Variable efficiency in asset utilization, with no sustained improvement observed.
Equity Turnover
Thermo Fisher Scientific Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total Thermo Fisher Scientific Inc. shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, 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. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, 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
Equity turnover = Revenues ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues increased consistently from 2020 through 2022, rising from approximately 32.2 billion US dollars in 2020 to nearly 44.9 billion US dollars in 2022. However, in the subsequent years 2023 and 2024, revenues stabilized, showing a slight decline in 2023 to around 42.9 billion US dollars and then virtually flat in 2024 at approximately 42.9 billion US dollars. This suggests a period of strong growth followed by plateauing revenue generation.
- Total Shareholders’ Equity
- Total shareholders' equity showed a steady upward trend throughout the five-year period. Beginning at about 34.5 billion US dollars in 2020, equity increased each year, reaching nearly 49.6 billion US dollars by 2024. This consistent growth in equity highlights a strengthening financial position and possibly retained earnings or additional capital contributions.
- Equity Turnover
- Equity turnover, representing the efficiency of using shareholders' equity to generate revenues, exhibited a modest fluctuation over the years. It rose slightly from 0.93 in 2020 to a peak of 1.02 in 2022, indicating enhanced efficiency during the growth phase of revenues. Subsequently, it declined to 0.92 in 2023 and further to 0.86 in 2024, reflecting reduced revenue generation efficiency relative to equity in the most recent years.
- Overall Insights
- The data reveals an initial phase of robust revenue growth coupled with increasing equity and improved equity turnover efficiency through 2022. Post-2022, revenues stabilized and equity turnover declined, despite continuing increases in shareholder equity. This pattern could suggest the company is accumulating equity faster than it is generating additional revenues, potentially indicating lower asset utilization efficiency or strategic investments expanding the equity base without immediate revenue returns.