Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

$24.99

Analysis of Profitability Ratios

Microsoft Excel

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Profitability Ratios (Summary)

Thermo Fisher Scientific Inc., profitability ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Return on Sales
Gross profit margin
Operating profit margin
Net profit margin
Return on Investment
Return on equity (ROE)
Return on assets (ROA)

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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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.