Thermo Fisher Scientific Inc. (NYSE:TMO)

The financial ratios indicate varying trends across the periods analyzed.

Net Fixed Asset Turnover Ratio

This ratio displays a peak around the end of 2020 and the beginning of 2021 with values reaching approximately 5.85 to 5.83, suggesting efficient use of fixed assets in generating sales during that time. Subsequently, there is a noticeable decline starting in the period following December 2021, dropping to values around 4.68 to 4.74 through 2023 and further stabilizing in the range of approximately 4.5 to 4.6 towards the end of the forecasted periods in 2024 and early 2025. This trend points to a gradual reduction in the efficiency of fixed asset utilization over time.

Total Asset Turnover Ratio

The total asset turnover ratio begins at about 0.47 in late 2020, increasing through early 2021 to a peak of approximately 0.57 in October 2021. Following this peak, the ratio diminishes noticeably, falling to around 0.41 by April 2022. It remains relatively stable but low, fluctuating between 0.42 to 0.49 through to the end of 2023. The trend continues with minor declines forecasted in 2024 and 2025, ending near 0.43. This pattern reflects a moderate decrease in overall asset efficiency in generating revenue over the analyzed periods.

Equity Turnover Ratio

The equity turnover ratio shows a slight upward trend from late 2020, moving from approximately 0.93 up to about 1.04 in early 2021. After this increase, the ratio experiences a gradual decline, dropping below 1.0 in the subsequent quarters and falling to as low as 0.86 by late 2024. Toward the end of the observation period, the ratio stabilizes around 0.86 to 0.87. This suggests a reduction in the efficiency with which equity is used to generate sales, highlighting a possible weakening in leveraging shareholder equity over the long term.

Over the reviewed periods, the revenue figures exhibit notable fluctuations. Initial quarters show a rising trajectory from 6,230 million US dollars in March 2020, peaking at 10,550 million US dollars by December 2020. This upward movement is followed by some variability, with revenues declining during mid-2021 and then recovering towards the end of 2021 and into early 2022, reaching again levels above 11,000 million US dollars. The subsequent quarters from 2022 through the first quarter of 2025 demonstrate a pattern of moderate oscillation, with revenues generally remaining within the range of approximately 10,300 to 11,400 million US dollars. The latest values indicate a slight downward trend by the first quarter of 2025.

The net book value of property, plant, and equipment shows a steady and sustained increase over the entire period. Starting from 4,736 million US dollars in March 2020, this asset base grows consistently, surpassing 9,000 million US dollars by early 2023 and maintaining values around that level through the first quarter of 2025. This trend reflects continued investment and possibly expansion in fixed capital assets, suggesting a long-term growth strategy.

Regarding the net fixed asset turnover ratio, data is incomplete for the earliest quarters but becomes available starting in late 2020. The ratio declines over time from 5.85 in June 2021 down to approximately 4.6 towards the end of 2024 and early 2025. This downward movement implies that the company's revenue generation from its fixed assets has decreased in efficiency during this period. It may indicate either increased investment in fixed assets not yet fully translated into revenue growth or operational challenges affecting asset utilization.

Revenue Trends

Strong growth observed up to late 2020, followed by a period of fluctuations with a tendency to stabilize around 10,300–11,400 million US dollars in recent quarters.

Property, Plant, and Equipment (Net)

Consistent and marked increase over the entire timeframe, indicative of substantial capital investment and asset expansion.

Net Fixed Asset Turnover Ratio

Progressive decline from high levels post-2020 towards about 4.6 by early 2025, signaling reduced revenue efficiency relative to the asset base size.

The quarterly financial data reveals several notable trends across revenues, total assets, and total asset turnover ratios over the observed periods.

Revenues

Revenues exhibit a general upward trend from the first quarter of 2020 through the end of 2021, increasing from $6,230 million to a peak of $11,450 million in the fourth quarter of 2022. After this peak, revenues experience some fluctuations but maintain levels mostly above $10,000 million. The most recent data points suggest a moderate decline, with revenues dropping to $10,364 million by the first quarter of 2025. Despite some volatility in mid-2021, the overall revenue trajectory reflects significant growth compared to early 2020 levels.

Total Assets

Total assets also show a rising trend during the analyzed timeframe. Starting at $58,688 million in the first quarter of 2020, assets grew steadily, peaking at $100,364 million in the third quarter of 2024. Notably, a substantial asset increase occurs between the fourth quarter of 2020 and the last quarter of 2021, with assets rising from $69,052 million to $95,123 million. Following this, total assets experience minor fluctuations but sustain elevated levels near or above $97,000 million. This indicates ongoing asset accumulation or revaluation supporting the company's growth.

Total Asset Turnover Ratio

The total asset turnover ratios available from the third quarter of 2020 onward indicate a generally decreasing efficiency trend. The ratio begins at 0.47 in the third quarter of 2020, increases to a high of 0.57 in the third quarter of 2021, and then steadily declines to around 0.42-0.44 by the end of 2024 and early 2025 periods. This decline suggests that while total assets have grown substantially, the corresponding increase in revenues is proportionally less, indicating a reduced rate of revenue generation per unit of asset owned.

In summary, the data points to sustained revenue growth and a marked increase in total assets over approximately five years, highlighting company expansion and asset accumulation. However, the downward trend in total asset turnover signifies a potential decrease in operational efficiency or capital utilization, warranting further examination of asset deployment strategies going forward.

The quarterly financial data indicates several notable trends in revenue, shareholders’ equity, and equity turnover ratios over the analyzed periods.

Revenues

Revenue exhibited a general upward trend from the beginning of 2020 through the middle of 2022, increasing from approximately $6.23 billion in March 2020 to a peak of around $11.82 billion in April 2022. Despite this growth phase, subsequent quarters show a degree of volatility with figures fluctuating between roughly $10.3 billion and $11.4 billion through the end of 2023. Into 2024, revenues demonstrate a slightly uneven pattern but mostly stabilize near the $10.3 billion to $11.4 billion range. This can suggest a maturing sales level with seasonal or market-driven variations affecting quarterly outcomes.

Total Shareholders’ Equity

Shareholders’ equity has steadily increased from about $28.56 billion in March 2020 to just under $49.6 billion as of March 2025. The trend reflects consistent growth in the book value attributable to shareholders, with a smoother and more stable rising pattern compared to revenues. Despite minor periods of slight decline or plateau (e.g., around early 2023 and mid-2024), the overarching trend indicates strengthening equity base, potentially reflecting retained earnings growth, capital injections, or other equity-enhancing transactions.

Equity Turnover Ratio

The equity turnover ratio, which measures revenue generated per unit of shareholders’ equity, shows a declining trend over time. In the earlier periods around 2020 and early 2021, the ratio hovered near or above 1.0, indicating efficient utilization of equity to generate revenue. However, from 2022 onward, this ratio gradually decreases, reaching around 0.86 to 0.87 in the latest quarters. This drop suggests that while shareholders’ equity has expanded considerably, revenue growth has not kept pace proportionally, leading to lower turnover efficiency.

In summary, revenues have grown substantially, particularly in the early part of the observed timeline, but exhibit variability and plateauing in recent quarters. At the same time, shareholders’ equity has consistently increased, reflecting a robust capital base expansion. The declining equity turnover ratio highlights a potential reduction in capital efficiency, indicating that the company’s capacity to generate revenue relative to its equity has diminished somewhat. This may point to a strategic phase of reinvestment, market conditions influencing sales growth, or structural changes in business operations impacting asset or equity utilization efficiency.