Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Thermo Fisher Scientific Inc., short-term (operating) activity ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Thermo Fisher Scientific Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Thermo Fisher Scientific Inc.’s receivables turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Thermo Fisher Scientific Inc.’s payables turnover declined from 2016 to 2017 but then slightly increased from 2017 to 2018.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Thermo Fisher Scientific Inc.’s working capital turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Thermo Fisher Scientific Inc.’s average inventory processing period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Thermo Fisher Scientific Inc.’s average receivable collection period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Thermo Fisher Scientific Inc.’s average payables payment period increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Thermo Fisher Scientific Inc.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Thermo Fisher Scientific Inc., inventory turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Cost of revenues
	Inventories
	Ratio
	Inventory turnover¹
	Benchmarks
	Inventory Turnover, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Inventory Turnover, Sector
	Health Care Equipment & Services
	Inventory Turnover, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Inventory turnover = Cost of revenues ÷ Inventories
= hidden ÷ hidden = hidden

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Thermo Fisher Scientific Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Thermo Fisher Scientific Inc., receivables turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Revenues
	Accounts receivable, less allowances
	Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	UnitedHealth Group Inc.
	Receivables Turnover, Sector
	Health Care Equipment & Services
	Receivables Turnover, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Receivables turnover = Revenues ÷ Accounts receivable, less allowances
= hidden ÷ hidden = hidden

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Thermo Fisher Scientific Inc.’s receivables turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Thermo Fisher Scientific Inc., payables turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Cost of revenues
	Accounts payable
	Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	UnitedHealth Group Inc.
	Payables Turnover, Sector
	Health Care Equipment & Services
	Payables Turnover, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Payables turnover = Cost of revenues ÷ Accounts payable
= hidden ÷ hidden = hidden

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Thermo Fisher Scientific Inc.’s payables turnover declined from 2016 to 2017 but then slightly increased from 2017 to 2018.

Thermo Fisher Scientific Inc., working capital turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Current assets
	Less: Current liabilities
	Working capital
	Revenues
	Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	UnitedHealth Group Inc.
	Working Capital Turnover, Sector
	Health Care Equipment & Services
	Working Capital Turnover, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Working capital turnover = Revenues ÷ Working capital
= hidden ÷ hidden = hidden

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Thermo Fisher Scientific Inc.’s working capital turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Thermo Fisher Scientific Inc., average inventory processing period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Inventory turnover
	Ratio (no. of days)
	Average inventory processing period¹
	Benchmarks (no. of days)
	Average Inventory Processing Period, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Average Inventory Processing Period, Sector
	Health Care Equipment & Services
	Average Inventory Processing Period, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Thermo Fisher Scientific Inc.’s average inventory processing period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Thermo Fisher Scientific Inc., average receivable collection period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹
	Benchmarks (no. of days)
	Average Receivable Collection Period, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	UnitedHealth Group Inc.
	Average Receivable Collection Period, Sector
	Health Care Equipment & Services
	Average Receivable Collection Period, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Thermo Fisher Scientific Inc.’s average receivable collection period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Thermo Fisher Scientific Inc., operating cycle calculation, comparison to benchmarks

No. of days

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Ratio
	Operating cycle¹
	Benchmarks
	Operating Cycle, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Operating Cycle, Sector
	Health Care Equipment & Services
	Operating Cycle, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= hidden + hidden = hidden

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.

Thermo Fisher Scientific Inc., average payables payment period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹
	Benchmarks (no. of days)
	Average Payables Payment Period, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	UnitedHealth Group Inc.
	Average Payables Payment Period, Sector
	Health Care Equipment & Services
	Average Payables Payment Period, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Thermo Fisher Scientific Inc.’s average payables payment period increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Thermo Fisher Scientific Inc., cash conversion cycle calculation, comparison to benchmarks

No. of days

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Ratio
	Cash conversion cycle¹
	Benchmarks
	Cash Conversion Cycle, Competitors
	Becton, Dickinson & Co.
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Cash Conversion Cycle, Sector
	Health Care Equipment & Services
	Cash Conversion Cycle, Industry
	Health Care

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-26).

2018 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= hidden + hidden – hidden = hidden

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Thermo Fisher Scientific Inc.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

	Thermo Fisher Scientific Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
Financial Reporting Quality

Thermo Fisher Scientific Inc. (TMO)

Short-term (Operating) Activity Analysis

Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle