Thermo Fisher Scientific Inc. (NYSE:TMO)

Gross Profit Margin

The gross profit margin demonstrated a declining trend from April 2021 through April 2023, decreasing from approximately 50.08% to a low point near 39.75%. Following this period, a modest recovery is observed, with the margin gradually increasing to 41.34% by March 2025. This indicates initial margin pressure possibly due to cost or pricing challenges, followed by stabilization and slight improvement.

Operating Profit Margin

The operating profit margin also exhibited a downward trajectory starting around April 2021 at 25.57%, declining steadily to 15.42% by July 2023. Thereafter, it shows minimal variation but an overall slight improvement, finishing around 17.23% in March 2025. This suggests that operating efficiency or expense management was challenged during the initial decline period, with some recovery in operating performance in later quarters.

Net Profit Margin

Similar to operating margins, net profit margin decreased from about 19.7% in April 2021 to 13.14% in July 2023. Post this decline, the net margin stabilized and increased modestly, reaching 15.18% by March 2025. The pattern reflects broader profitability pressures impacting the bottom line, followed by a stabilization phase.

Return on Equity (ROE)

ROE followed a downward trend from a peak of 22.6% observed in June 2021, descending to 13.08% by July 2023. Afterward, the ROE experienced minor fluctuations but overall remained broadly stable around 13% through March 2025. This decline and plateau suggest a reduction in the efficiency of equity utilization over time, with no significant recovery.

Return on Assets (ROA)

ROA showed a similar pattern, falling from 12.02% in June 2021 to approximately 6.08% in July 2023. Thereafter, it maintained levels near 6%, with slight increases toward 6.58% by March 2025. The data indicates diminished asset efficiency during the early period, with a modest rebound or stabilization in asset returns subsequently.

The financial data presents quarterly trends in gross profit, revenues, and gross profit margin over multiple fiscal periods.

Gross Profit

Gross profit generally increased from US$ 2,740 million in March 2020 to a peak of approximately US$ 5,556 million by December 2020. Following this peak, there was a notable decline through 2022, with values dropping to a low of US$ 4,302 million in October 2022. Subsequent quarters show modest fluctuations, with gross profit mostly ranging between US$ 4,100 million and US$ 4,800 million. While there is a slight recovery towards the end of 2024 and early 2025, the levels remain below the peak observed at the end of 2020.

Revenues

Revenues exhibit a similar pattern as gross profit, rising sharply from US$ 6,230 million in March 2020 to a high of US$ 10,550 million in December 2020. After this quarter, revenues experienced a moderate decline and some volatility through the 2022 and 2023 periods, with values fluctuating around the US$ 10,000 million mark. By early 2025, revenues do not appear to have fully recovered to the peak levels seen at the end of 2020 but show slight improvement compared to the lows in 2022 and 2023.

Gross Profit Margin

The gross profit margin rose to nearly 51.5% by mid to late 2021, indicating strong profitability relative to revenues during that period. However, starting in early 2022, the margin continuously contracted, dropping below 40% for most of 2023 and early 2024. A modest rebound is noticeable in late 2024 and early 2025, reaching around 41.3%. This decline suggests increasing cost pressures or changes in pricing strategies that have affected profitability efficiency over time.

Overall, the data indicates that the company experienced significant growth in revenue and gross profit leading up to the end of 2020, followed by a period of decline and stabilization through 2023. The contraction in gross profit margins during this latter period suggests challenges in maintaining profitability despite relatively stable revenues. The slight improvements toward the end of the timeline may indicate the beginning of a recovery phase, but profitability margins remain below historic peaks.

Revenues

Revenues displayed a generally increasing trend from March 2020 through December 2021, rising from 6,230 million USD to a peak of 11,450 million USD in December 2022. There was a noticeable peak in December 2020 at 10,550 million USD followed by slight fluctuations but remaining mostly above 10,000 million USD. After the peak in late 2022, revenues slightly declined and fluctuated around 10,300 to 11,395 million USD in subsequent quarters without a clear sustained upward or downward trajectory through March 2025.

Operating Income

Operating income initially showed a sharp increase from 906 million USD in March 2020 to 3,071 million USD in December 2020. However, after this peak, there was a decline through mid-2021 with some recovery phases, noting peaks in December 2021 and again December 2024 at approximately 2,821 million USD and 2,016 million USD, respectively. The data indicates relatively high volatility with periodic rises and falls, and a downward trend in operating income relative to the early 2021 peak.

Operating Profit Margin

Operating profit margin was not reported for the initial periods but began at 24.19% in December 2020, rising to a high of 28% by the third quarter of 2021. Subsequently, it declined steadily to a low of 15.42% by the third quarter of 2023. From then onwards, it experienced minor fluctuations, gradually recovering to around 17.23% by the first quarter of 2025. This indicates a significant contraction in profitability margins following the mid-2021 peak, with partial recovery toward the end of the observed period.

Summary of Trends

The company's revenues saw strong growth in the early phase, peaking by the end of 2022, then stabilizing somewhat in the subsequent periods. Operating income showed high variability with early substantial growth but did not maintain the peak levels and experienced declines and partial recoveries in later quarters. The operating profit margin followed a similar pattern—initial expansion followed by a sharp decrease and a later modest rebound. Together, these trends suggest challenges in sustaining operating profitability despite relatively stable revenue levels in the latter periods.

The financial data reveals several noteworthy trends relating to net income, revenues, and net profit margin over the periods considered.

Net Income Attributable to the Company

The net income displays significant volatility, with initial values rising steeply from 788 million USD in March 2020 to a peak of 2,498 million USD by December 2020. Following this peak, net income experiences a general downward trend with fluctuations, declining to 1,289 million USD by April 2023. Subsequently, there is a moderate recovery phase with net income increasing again to reach 1,829 million USD by December 2024, before slightly falling to 1,507 million USD in March 2025. Overall, the data indicates periods of both substantial growth and decline within a four to five-year span.

Revenues

Revenues showed a robust upward trend from 6,230 million USD in March 2020 to a high of 11,818 million USD in April 2022. However, after this peak, revenues demonstrate a moderately cyclical pattern with some declines and recoveries but generally fluctuate in the range of approximately 10,300 to 11,400 million USD in the later periods. By March 2025, revenues slightly decrease to 10,364 million USD. This indicates stabilization following a period of rapid growth.

Net Profit Margin

The net profit margin data begins in December 2020 at around 19.79%, reaching a high point of 22.47% in October 2021. After this peak, there is a noticeable decrease in profitability, with the margin dropping to approximately 13.14% by July 2023. Subsequently, a gradual improvement is observed, with the margin increasing steadily to about 15.18% by March 2025. This suggests that while profitability declined from earlier highs, it has been recovering towards the end of the timeline.

In summary, the company experienced strong growth in revenues and net income through 2020 and early 2021, followed by a period of reduced profitability and fluctuating income levels. Revenues have stabilized after peaking in 2022, while net income has shown recovery after hitting lows in early 2023. Profit margins have contracted significantly from their peak but are showing signs of improvement towards the end of the most recent period analyzed.

The analysis of the quarterly financial data reveals several notable trends and patterns related to net income, shareholders' equity, and return on equity (ROE) for the given periods.

Net Income

Net income attributable to the company initially increased from 788 million US dollars in March 2020 to reach a peak of 2,498 million US dollars by December 2020. After this peak, the net income demonstrated significant volatility with fluctuations observed in subsequent quarters. It declined notably in the first and second quarters of 2021 but rebounded again by April 2022. Following mid-2022, there was a general downward trend with net income values mostly falling below one thousand six hundred million US dollars, occasionally showing some recovery before declining again in late 2024 and early 2025.

Total Shareholders’ Equity

Shareholders’ equity showed a consistent positive trajectory across the periods observed. Starting at approximately 28.6 billion US dollars in March 2020, the equity steadily increased to nearly 49.6 billion US dollars by the end of 2024. Despite occasional minor declines, equity remained on an overall upward trend, indicating a strengthening capital base and possibly retained earnings growth within the company over time.

Return on Equity (ROE)

Return on equity data is available from December 2020 onward and indicates a high ROE initially—exceeding 22% and peaking at around 23.3% in October 2021. Following this peak, ROE has trended downward gradually, falling to levels around 12.5% to 13.2% by the end of 2024 and early 2025. The decline in ROE suggests that despite increasing equity, the company’s net income growth did not keep pace proportionately, which may reflect changes in profitability or capital efficiency.

Overall, the financial data underscores a period of growth in equity, accompanied by high but fluctuating net income and diminishing returns on equity. This combination may suggest the company has expanded its capital base, but the profitability relative to equity has decreased over the reported timeline.

Net Income Attributable to Thermo Fisher Scientific Inc.

The net income demonstrates significant volatility across the quarters. Starting at 788 million USD in March 2020, it increased sharply to a peak of 2498 million USD by December 2020. Following this peak, net income showed a declining trend during 2021, reaching a low of 1658 million USD in December 2021. In 2022, net income fluctuated with a general decline, reaching a minimum of 1495 million USD in October 2022, before showing a slight recovery towards the end of the year. In 2023, the values remained somewhat unstable, dipping as low as 1289 million USD in April but recovering to 1715 million USD in September, followed by a slight decrease again by December. In 2024 and early 2025, the net income gradually increased again, peaking at 1829 million USD in December 2024 before decreasing to 1507 million USD by March 2025. Overall, the net income is characterized by periods of sharp increase followed by intermittent declines, indicating fluctuations in profitability.

Total Assets

Total assets display an overall growth trajectory but with periods of fluctuation. Beginning at 58,688 million USD in March 2020, assets rose steadily, reaching a significant increase by December 2021 at 95,123 million USD. However, from early 2022 onward, total assets experienced slight decreases and volatility, dropping to 90,536 million USD in October 2022 before increasing again to nearly 98,726 million USD at the end of 2023. In 2024 and early 2025, asset values fluctuate around 97,000 to 100,364 million USD, suggesting stabilization at a higher asset base compared to earlier periods. The asset growth trend highlights ongoing investment or acquisition activity, with temporary retrenchments in asset levels.

Return on Assets (ROA)

ROA data is incomplete for early periods but shows key trends from December 2020 onward. It peaked at 12.7% in October 2021 and then steadily declined through 2022 and 2023, reaching approximately 6.08% in July 2023. From late 2023 to early 2025, ROA stabilized in the range of 6.0% to 6.6%, indicating reduced asset efficiency compared to the 2020-2021 high points. This decreasing trend in ROA reflects either lower net income generation relative to asset size or expanded asset bases without proportional profit increases during this period.

Overall Insights

The analysis reveals a pattern of rapid growth in profitability and assets through 2020, followed by fluctuations and some decline in earnings through 2021 and 2022. Asset size grew significantly but ROA diminished, implying that asset growth has outpaced profit generation efficiency. The latter periods to early 2025 show attempts at recovery in net income and stable asset levels with modest ROA improvement. The data suggests a transitional phase in financial performance where the company may be managing challenges with profitability despite maintaining a substantial asset base.