Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Thermo Fisher Scientific Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 39.90% 42.24% 50.08% 49.67% 44.35%
Operating profit margin 16.00% 18.69% 25.57% 24.19% 17.99%
Net profit margin 13.99% 15.47% 19.70% 19.79% 14.47%
Return on Investment
Return on equity (ROE) 12.83% 15.80% 18.94% 18.47% 12.45%
Return on assets (ROA) 6.07% 7.15% 8.12% 9.23% 6.33%

Based on: 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), 10-K (reporting date: 2019-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Thermo Fisher Scientific Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Thermo Fisher Scientific Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Thermo Fisher Scientific Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Thermo Fisher Scientific Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Thermo Fisher Scientific Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

Thermo Fisher Scientific Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 17,100 18,971 19,638 16,004 11,328
Revenues 42,857 44,915 39,211 32,218 25,542
Profitability Ratio
Gross profit margin1 39.90% 42.24% 50.08% 49.67% 44.35%
Benchmarks
Gross Profit Margin, Competitors2
AbbVie Inc. 62.42% 70.00% 68.96% 66.41% 77.64%
Amgen Inc. 68.60% 74.17% 73.44% 74.59% 80.38%
Bristol-Myers Squibb Co. 76.24% 78.04% 78.57% 72.31% 69.10%
Eli Lilly & Co. 79.25% 76.77% 74.18% 77.66% 78.85%
Gilead Sciences Inc. 75.87% 79.03% 75.56% 81.23% 78.86%
Johnson & Johnson 68.82% 67.26% 68.16% 65.58% 66.42%
Merck & Co. Inc. 73.17% 70.63% 72.02% 67.74% 69.87%
Pfizer Inc. 57.34% 65.77% 62.08% 79.26% 80.25%
Regeneron Pharmaceuticals Inc. 86.16% 87.18% 84.83% 86.82% 90.05%
Vertex Pharmaceuticals Inc. 87.21% 87.90% 88.06% 88.14% 86.84%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 17,100 ÷ 42,857 = 39.90%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Thermo Fisher Scientific Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Thermo Fisher Scientific Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 6,859 8,393 10,028 7,794 4,594
Revenues 42,857 44,915 39,211 32,218 25,542
Profitability Ratio
Operating profit margin1 16.00% 18.69% 25.57% 24.19% 17.99%
Benchmarks
Operating Profit Margin, Competitors2
AbbVie Inc. 23.49% 31.21% 31.89% 24.81% 39.03%
Amgen Inc. 29.35% 38.57% 31.44% 37.70% 43.57%
Bristol-Myers Squibb Co. 16.18% 17.96% 15.91% -21.60% 22.62%
Eli Lilly & Co. 18.92% 24.97% 22.45% 24.69% 22.29%
Gilead Sciences Inc. 28.24% 27.17% 36.72% 16.72% 19.38%
Johnson & Johnson 24.90% 24.63% 24.95% 23.60% 24.15%
Merck & Co. Inc. 3.92% 30.27% 25.74% 16.47% 24.77%
Pfizer Inc. 0.38% 34.83% 23.91% 19.47% 25.46%
Regeneron Pharmaceuticals Inc. 30.85% 38.93% 55.67% 42.09% 28.10%
Vertex Pharmaceuticals Inc. 38.83% 48.23% 36.73% 46.03% 28.77%
Operating Profit Margin, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.62% 28.54% 26.95% 18.70% 26.27%
Operating Profit Margin, Industry
Health Care 9.45% 13.29% 13.19% 10.52% 12.41%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,859 ÷ 42,857 = 16.00%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Thermo Fisher Scientific Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Thermo Fisher Scientific Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc. 5,995 6,950 7,725 6,375 3,696
Revenues 42,857 44,915 39,211 32,218 25,542
Profitability Ratio
Net profit margin1 13.99% 15.47% 19.70% 19.79% 14.47%
Benchmarks
Net Profit Margin, Competitors2
AbbVie Inc. 8.95% 20.39% 20.54% 10.08% 23.69%
Amgen Inc. 24.96% 26.42% 24.25% 29.97% 35.32%
Bristol-Myers Squibb Co. 17.83% 13.71% 15.08% -21.20% 13.15%
Eli Lilly & Co. 15.36% 21.88% 19.71% 25.24% 37.27%
Gilead Sciences Inc. 21.03% 17.02% 23.05% 0.51% 24.35%
Johnson & Johnson 41.28% 18.90% 22.26% 17.82% 18.42%
Merck & Co. Inc. 0.61% 24.49% 26.79% 14.72% 21.01%
Pfizer Inc. 3.62% 31.27% 27.04% 22.95% 31.45%
Regeneron Pharmaceuticals Inc. 30.14% 35.64% 50.25% 41.35% 26.91%
Vertex Pharmaceuticals Inc. 36.68% 37.20% 30.92% 43.70% 28.27%
Net Profit Margin, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.88% 22.57% 23.52% 13.96% 23.55%
Net Profit Margin, Industry
Health Care 8.11% 10.32% 10.91% 7.86% 10.19%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 5,995 ÷ 42,857 = 13.99%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Thermo Fisher Scientific Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Thermo Fisher Scientific Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc. 5,995 6,950 7,725 6,375 3,696
Total Thermo Fisher Scientific Inc. shareholders’ equity 46,735 43,978 40,793 34,507 29,675
Profitability Ratio
ROE1 12.83% 15.80% 18.94% 18.47% 12.45%
Benchmarks
ROE, Competitors2
AbbVie Inc. 46.94% 68.60% 74.91% 35.30%
Amgen Inc. 107.78% 178.97% 87.96% 77.20% 81.07%
Bristol-Myers Squibb Co. 27.27% 20.37% 19.46% -23.84% 6.66%
Eli Lilly & Co. 48.65% 58.64% 62.16% 109.79% 319.09%
Gilead Sciences Inc. 24.81% 21.62% 29.55% 0.68% 23.91%
Johnson & Johnson 51.11% 23.36% 28.20% 23.25% 25.42%
Merck & Co. Inc. 0.97% 31.57% 34.17% 27.91% 37.99%
Pfizer Inc. 2.38% 32.79% 28.47% 15.21% 25.77%
Regeneron Pharmaceuticals Inc. 15.22% 19.14% 43.03% 31.86% 19.08%
Vertex Pharmaceuticals Inc. 20.59% 23.88% 23.19% 31.22% 19.34%
ROE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.37% 29.77% 31.77% 18.32% 29.64%
ROE, Industry
Health Care 18.01% 22.38% 22.87% 16.20% 21.01%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 5,995 ÷ 46,735 = 12.83%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Thermo Fisher Scientific Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Thermo Fisher Scientific Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc. 5,995 6,950 7,725 6,375 3,696
Total assets 98,726 97,154 95,123 69,052 58,381
Profitability Ratio
ROA1 6.07% 7.15% 8.12% 9.23% 6.33%
Benchmarks
ROA, Competitors2
AbbVie Inc. 3.61% 8.53% 7.88% 3.07% 8.84%
Amgen Inc. 6.91% 10.06% 9.63% 11.54% 13.13%
Bristol-Myers Squibb Co. 8.43% 6.53% 6.40% -7.61% 2.65%
Eli Lilly & Co. 8.19% 12.62% 11.44% 13.28% 21.17%
Gilead Sciences Inc. 9.12% 7.27% 9.16% 0.18% 8.74%
Johnson & Johnson 20.98% 9.57% 11.47% 8.41% 9.59%
Merck & Co. Inc. 0.34% 13.30% 12.35% 7.72% 11.66%
Pfizer Inc. 0.94% 15.91% 12.11% 6.23% 9.72%
Regeneron Pharmaceuticals Inc. 11.95% 14.85% 31.75% 20.47% 14.29%
Vertex Pharmaceuticals Inc. 15.92% 18.30% 17.44% 23.07% 14.15%
ROA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.37% 10.84% 10.64% 5.51% 9.31%
ROA, Industry
Health Care 6.45% 8.39% 8.25% 5.52% 7.21%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × 5,995 ÷ 98,726 = 6.07%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Thermo Fisher Scientific Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.