Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Thermo Fisher Scientific Inc., profitability ratios
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).
- Gross profit margin
- The gross profit margin exhibited a downward trend from 49.67% in 2020 to a low of 39.9% in 2023, followed by a slight recovery to 41.28% in 2024. This indicates a reduction in the proportion of revenue retained after accounting for cost of goods sold over the period, with some improvement in the most recent year.
- Operating profit margin
- The operating profit margin declined from 24.19% in 2020 to 16.0% in 2023, reflecting decreasing operational efficiency or increasing operating expenses relative to sales. A modest increase to 17.11% in 2024 suggests a partial rebound but still remains significantly lower than early period figures.
- Net profit margin
- Net profit margin followed a similar pattern, decreasing from 19.79% in 2020 to 13.99% in 2023, then rising slightly to 14.77% in 2024. This trend signals weakening overall profitability during the middle years with a minor recovery later, possibly influenced by changes in expenses, taxation, or other non-operating factors.
- Return on equity (ROE)
- ROE gradually decreased from 18.47% in 2020 to 12.78% in 2024, indicating reduced efficiency in generating profits from shareholders' equity. The largest decline occurred between 2021 and 2023, aligning with decreases in profit margins.
- Return on assets (ROA)
- ROA reflected a downward trend from 9.23% in 2020 to 6.07% in 2023, with a slight increase to 6.51% in 2024. This suggests declining effectiveness in asset utilization to generate net income, consistent with the pattern of profitability ratios.
Return on Sales
Return on Investment
Gross Profit Margin
Thermo Fisher Scientific Inc., gross profit margin 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) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, 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. | ||||||
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues demonstrate an overall increasing trend from 2020 to 2022, rising from 32,218 million US dollars in 2020 to a peak of 44,915 million US dollars in 2022. However, there is a slight decline in 2023 to 42,857 million US dollars, followed by a stabilization in 2024 at 42,879 million US dollars.
- Gross Profit
- Gross profit shows an increase from 16,004 million US dollars in 2020 to a peak of 19,638 million US dollars in 2021. Subsequently, it declines to 18,971 million in 2022 and continues to fall to 17,100 million in 2023. By 2024, there is a minor recovery to 17,702 million US dollars, yet this remains significantly lower than the peak in 2021.
- Gross Profit Margin
- The gross profit margin experiences an upward movement from 49.67% in 2020 to 50.08% in 2021, indicating improved profitability relative to revenue. Thereafter, the margin decreases notably to 42.24% in 2022 and continues its downward trajectory to 39.9% in 2023, before a slight increase to 41.28% in 2024. This suggests a reduction in operational efficiency or increased costs after 2021, partially recovering in the final period.
Operating Profit Margin
Thermo Fisher Scientific Inc., operating profit margin 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) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, 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. | ||||||
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenues
- Over the five-year period, revenues have shown a general upward trend. Starting at $32,218 million in 2020, revenues increased significantly to $39,211 million in 2021 and further to $44,915 million in 2022. However, there was a decline in 2023 to $42,857 million, followed by a stabilization in 2024 at $42,879 million, indicating a potential plateau or the beginning of a downward trend.
- Operating Income
- Operating income peaked in 2021 at $10,028 million, reflecting strong operational profitability. Following this peak, there was a notable decline to $8,393 million in 2022 and a further decrease to $6,859 million in 2023. The data for 2024 shows a slight recovery to $7,337 million, though still significantly below the 2021 peak levels.
- Operating Profit Margin
- The operating profit margin exhibited a decreasing trend over the period. It was highest in 2021 at 25.57%, indicating relatively high profitability relative to revenues. The margin then dropped considerably to 18.69% in 2022 and continued to decline to 16% in 2023. A minor improvement to 17.11% was observed in 2024, suggesting some recovery in operational efficiency but remaining well below the earlier high margin.
- Overall Analysis
- The company experienced strong revenue growth through 2022, followed by a slowdown and stabilization in 2023 and 2024. Despite rising revenues until 2022, operating income and profit margins declined significantly from their peak in 2021, indicating increased costs, pricing pressures, or operational challenges. The partial recovery in operating income and margin in 2024 points to initial improvements, but profitability metrics remain below earlier peak levels. This trend suggests that while the company has maintained substantial revenue size, it has faced challenges in maintaining operational efficiency and profitability in recent years.
Net Profit Margin
Thermo Fisher Scientific Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Thermo Fisher Scientific Inc. | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, 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 Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a consistent upward trend from 2020 to 2022, increasing significantly from approximately 32.2 billion to 44.9 billion US dollars. However, this growth decelerated in 2023, with revenues slightly decreasing to around 42.9 billion US dollars, and remained virtually flat in 2024 at approximately 42.9 billion US dollars, indicating a plateau in top-line growth after several years of strong increases.
- Net income attributable to Thermo Fisher Scientific Inc.
- Net income reached its peak in 2021 at approximately 7.7 billion US dollars, followed by a decline in 2022 to about 6.95 billion and a further reduction in 2023 to roughly 6.0 billion US dollars. A slight recovery is visible in 2024, with net income increasing moderately to approximately 6.3 billion US dollars. Overall, net income showed volatility with a downward trend after 2021.
- Net profit margin
- The net profit margin was relatively stable around 19.7% in 2020 and 2021 but decreased notably starting in 2022, dropping to approximately 15.5%, then further declining to about 14.0% in 2023. In 2024, a modest improvement to nearly 14.8% was observed. This decline suggests pressure on profitability margins despite relatively stable revenue levels in recent years.
- Overall Trends and Insights
- The data indicate that while revenues experienced strong growth up to 2022, growth has stalled in recent years. Concurrently, net income and profit margins have decreased after peaking in 2021, suggesting that costs or other factors might be adversely affecting profitability. The modest recovery in net income and margins in 2024 may signify initial signs of improved operational efficiency or cost management. The divergence between stable revenues and declining profit margins points toward increasing expenses or reduced pricing power affecting the company's profitability profile in the most recent periods.
Return on Equity (ROE)
Thermo Fisher Scientific Inc., ROE 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) | ||||||
| Net income attributable to Thermo Fisher Scientific Inc. | ||||||
| Total Thermo Fisher Scientific Inc. shareholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, 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. | ||||||
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROE, 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
ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data presents key indicators related to profitability and equity from the end of 2020 through the end of 2024.
- Net Income
- The net income attributable to the company initially increased significantly from 6,375 million US dollars in 2020 to a peak of 7,725 million US dollars in 2021. However, this was followed by a decline to 6,950 million in 2022, continuing downward to 5,995 million in 2023, before slightly recovering to 6,335 million by the end of 2024. The general trend after 2021 indicates pressure on net earnings, with some stabilization observed in the last reported period.
- Total Shareholders’ Equity
- Shareholders' equity demonstrated consistent growth throughout the period, rising from 34,507 million US dollars in 2020 to 49,584 million US dollars in 2024. This steady increase suggests ongoing capital retention and/or capital inflows, strengthening the company’s equity base.
- Return on Equity (ROE)
- The return on equity shows a downward trajectory over the five-year span. After maintaining levels near 18.5% to 19% during 2020 and 2021, ROE decreased to 15.8% in 2022 and further declined to approximately 12.8% in 2023 and 2024. This decline in ROE corresponds to the reduction in net income despite the rising equity base, indicating diminishing efficiency in generating profits from shareholders' equity.
Overall, the data reveals a phase of growth in profitability in the early period followed by a decline in net income and returns on equity, while the equity base itself has expanded steadily. This suggests a potential shift in operational or market conditions affecting profitability despite stronger capitalization.
Return on Assets (ROA)
Thermo Fisher Scientific Inc., ROA 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) | ||||||
| Net income attributable to Thermo Fisher Scientific Inc. | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, 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. | ||||||
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROA, 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
ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Thermo Fisher Scientific Inc.
- The net income exhibited a fluctuating trend over the five-year period. Starting at $6,375 million in 2020, it increased significantly to $7,725 million in 2021. Subsequently, it declined to $6,950 million in 2022 and continued to decrease to $5,995 million in 2023. In 2024, there was a partial recovery, with net income rising to $6,335 million. Overall, notwithstanding the initial growth, net income demonstrated variability with a downward tendency after 2021, followed by a moderate rebound in the final year.
- Total Assets
- Total assets showed a general upward trend from 2020 to 2023, rising from $69,052 million to $98,726 million. The growth was particularly notable between 2020 and 2021, with an increase of over $25,000 million. From 2022 onward, asset growth slowed, eventually experiencing a slight decline to $97,321 million in 2024. This stabilization suggests a plateau in asset accumulation after a period of rapid expansion.
- Return on Assets (ROA)
- The return on assets exhibited a consistent downward trend over the period. It started at 9.23% in 2020 and declined each subsequent year until reaching a low of 6.07% in 2023. In 2024, ROA saw a modest improvement to 6.51%, but it remained significantly lower than the initial value in 2020. This decrease in ROA indicates a reduced efficiency in generating earnings relative to asset base over time.