Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Thermo Fisher Scientific Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a generally declining trend from 2021 through 2023, followed by a period of stabilization and slight improvement from 2023 to 2025. While margins and returns have not fully recovered to 2021 levels, the most recent periods suggest a potential plateauing of the decline.
- Gross Profit Margin
- The gross profit margin experienced a substantial decrease from 50.08% in 2021 to 39.90% in 2023. A modest recovery is then observed, reaching 40.93% in 2025. This indicates potential pressures on cost of goods sold or pricing strategies during the 2021-2023 timeframe, with some stabilization in subsequent years.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin declined from 25.57% in 2021 to 16.00% in 2023. The trend shows a slight increase to 17.38% by 2025, suggesting improved operational efficiency or cost control measures, though not a full restoration of earlier profitability. The magnitude of the decline is notable, indicating increasing operating expenses relative to revenue.
- Net Profit Margin
- The net profit margin mirrors the trends observed in the gross and operating margins, decreasing from 19.70% in 2021 to 13.99% in 2023, and then increasing to 15.05% in 2025. This suggests that factors impacting gross and operating profitability are directly influencing the bottom line. The improvement from 2023 to 2025 is consistent with the stabilization seen in the other margin metrics.
- Return on Equity (ROE)
- Return on equity decreased consistently from 18.94% in 2021 to 12.55% in 2025. This continuous decline suggests a diminishing ability to generate profit from shareholder investments. The consistent downward trend, without any signs of reversal, is a point of concern.
- Return on Assets (ROA)
- Return on assets also exhibited a declining trend, moving from 8.12% in 2021 to 6.08% in 2025. While the rate of decline slowed between 2024 and 2025, the overall trend indicates decreasing efficiency in utilizing assets to generate earnings. The ROA mirrors the ROE trend, suggesting a broad-based decline in profitability relative to both equity and total assets.
In summary, the period from 2021 to 2023 was characterized by a significant reduction in profitability across all measured ratios. The subsequent two years show some signs of stabilization, but the metrics have not returned to their 2021 levels. Continued monitoring of these trends is recommended to assess the sustainability of the recent stabilization and the potential for future improvement.
Return on Sales
Return on Investment
Gross Profit Margin
Thermo Fisher Scientific Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited a declining trend from 2021 to 2023, followed by a stabilization and slight recovery in the subsequent two years. While revenues generally increased over the period, the gross profit did not consistently follow suit, impacting the margin.
- Gross Profit Margin Trend
- In 2021, the gross profit margin stood at 50.08%. This figure decreased significantly to 42.24% in 2022, and continued its downward trajectory, reaching 39.90% in 2023. A modest increase to 41.28% was observed in 2024, and this improvement continued with a further rise to 40.93% in 2025. This suggests potential pressures on input costs or pricing strategies between 2021 and 2023, with some mitigation occurring in the later years.
- Relationship to Revenues
- Revenues increased from US$39,211 million in 2021 to US$44,556 million in 2025, indicating overall business growth. However, gross profit peaked in 2021 at US$19,638 million and experienced a decline to US$17,100 million in 2023 before recovering to US$18,238 million in 2025. The slower growth of gross profit relative to revenues explains the observed margin compression.
The stabilization of the gross profit margin in 2024 and 2025, despite continued revenue growth, may indicate successful cost management initiatives or a shift in product mix towards higher-margin offerings. Further investigation into the cost of goods sold and revenue composition would be necessary to confirm these possibilities.
Operating Profit Margin
Thermo Fisher Scientific Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a fluctuating pattern over the five-year period. Initial values demonstrated a strong profitability position, followed by a period of decline and subsequent stabilization with a slight upward trend.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at 25.57%. A significant decrease was observed in 2022, falling to 18.69%. This downward trend continued into 2023, with the margin reaching 16.00%, representing the lowest point in the observed period.
- A modest recovery began in 2024, as the operating profit margin increased to 17.11%. This positive movement continued into 2025, with the margin reaching 17.38%, indicating a stabilization and slight improvement in profitability.
- Relationship to Operating Income and Revenues
- The decline in operating profit margin between 2021 and 2023 coincided with a decrease in operating income from US$10,028 million to US$6,859 million. While revenues increased from 2021 to 2022, they subsequently decreased in 2023, potentially contributing to the margin compression.
- The subsequent increase in operating profit margin in 2024 and 2025 occurred alongside a modest increase in operating income and relatively stable revenues. The revenue figures for 2024 and 2025 were nearly identical, suggesting that the margin improvement was primarily driven by operating income gains.
Overall, the analysis suggests a period of profitability challenges followed by a stabilization and modest recovery. Further investigation into the factors driving operating income and revenue fluctuations would be necessary to fully understand the underlying dynamics affecting the operating profit margin.
Net Profit Margin
Thermo Fisher Scientific Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the five-year period. Initially, a decline is observed, followed by a period of stabilization and modest growth.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 19.70%. A significant decrease was recorded in 2022, falling to 15.47%. This downward trend continued into 2023, with the margin reaching 13.99%, representing the lowest point in the observed period. A slight recovery occurred in 2024, as the net profit margin increased to 14.77%. This positive movement continued into 2025, with the margin reaching 15.05%.
The observed decrease in net profit margin from 2021 to 2023 coincided with an increase in revenues from 2021 to 2022, followed by a slight decrease in 2023 and stabilization in 2024, and then a further increase in 2025. This suggests that while revenues grew initially, the rate of net income growth did not keep pace, and subsequently, net income grew at a slower rate than revenues. The modest improvement in the net profit margin in 2024 and 2025 indicates a potential stabilization of profitability despite revenue fluctuations.
- Relationship to Net Income and Revenues
- Net income attributable to Thermo Fisher Scientific Inc. decreased from US$7,725 million in 2021 to US$6,950 million in 2022, and further to US$5,995 million in 2023. It then showed a slight increase to US$6,335 million in 2024 and US$6,704 million in 2025. Revenues increased from US$39,211 million in 2021 to US$44,915 million in 2022, decreased to US$42,857 million in 2023, remained relatively stable at US$42,879 million in 2024, and increased to US$44,556 million in 2025. The differing trends in net income and revenues are reflected in the net profit margin’s behavior.
The recent stabilization and slight increase in the net profit margin in the latter years of the period may warrant further investigation to determine the underlying drivers, such as cost management initiatives or changes in product mix.
Return on Equity (ROE)
Thermo Fisher Scientific Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 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 Return on Equity (ROE) exhibited a declining trend over the five-year period from 2021 to 2025. While net income attributable to Thermo Fisher Scientific Inc. and total shareholders’ equity both increased in absolute terms, the rate of increase in equity outpaced that of net income, resulting in a decreasing ROE.
- ROE Trend
- In 2021, the ROE stood at 18.94%. This figure decreased to 15.80% in 2022, representing a substantial decline. The downward trend continued, with ROE reaching 12.83% in 2023. The rate of decline slowed in subsequent years, with ROE at 12.78% in 2024 and further decreasing to 12.55% in 2025.
- Net Income Performance
- Net income attributable to Thermo Fisher Scientific Inc. decreased from US$7,725 million in 2021 to US$6,950 million in 2022. It further declined to US$5,995 million in 2023 before showing a modest recovery to US$6,335 million in 2024 and US$6,704 million in 2025. Despite the recovery in the later years, net income did not return to the levels observed in 2021.
- Shareholders’ Equity Growth
- Total shareholders’ equity consistently increased throughout the period, moving from US$40,793 million in 2021 to US$53,407 million in 2025. This consistent growth in equity, while positive, contributed to the decreasing ROE as the denominator in the ROE calculation increased at a faster rate than the numerator (net income).
The observed decline in ROE, coupled with the growth in shareholders’ equity, suggests that the company is reinvesting capital, but the returns generated from those investments are not keeping pace with the increased equity base. Further investigation into the drivers of equity growth and net income fluctuations would be necessary to fully understand the underlying causes of this trend.
Return on Assets (ROA)
Thermo Fisher Scientific Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a declining trend from 2021 to 2023, followed by a slight recovery in 2024 and a subsequent decrease in 2025. This analysis details the observed patterns in ROA alongside the underlying components of net income and total assets.
- Overall ROA Trend
- ROA decreased from 8.12% in 2021 to 6.07% in 2023, representing a reduction of approximately 2.05 percentage points over the three-year period. A modest increase to 6.51% was noted in 2024, but this was followed by a decline to 6.08% in 2025.
- Net Income Analysis
- Net income attributable to the company decreased from US$7,725 million in 2021 to US$5,995 million in 2023, contributing to the initial decline in ROA. Net income experienced a recovery in 2024, reaching US$6,335 million, and continued to increase to US$6,704 million in 2025. However, the growth in net income was not sufficient to offset the changes in total assets and fully restore ROA to its 2021 level.
- Total Asset Analysis
- Total assets increased consistently from US$95,123 million in 2021 to US$98,726 million in 2023. A slight decrease to US$97,321 million occurred in 2024, followed by a substantial increase to US$110,343 million in 2025. The continued growth in total assets, particularly the significant increase in 2025, likely contributed to the suppression of ROA despite the increase in net income during that year.
- Interplay of Net Income and Total Assets
- The decline in ROA from 2021 to 2023 was primarily driven by a larger decrease in net income compared to the increase in total assets. The subsequent stabilization and slight increase in ROA in 2024 suggest a more balanced relationship between these two components. However, the decrease in ROA in 2025 indicates that the growth in total assets outpaced the growth in net income, resulting in a lower return on the asset base.
In summary, the ROA trend reflects a complex interplay between net income and total asset movements. While net income demonstrated recovery after 2023, the substantial asset growth in 2025 ultimately led to a decrease in ROA.