Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO) 

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 3.88 4.02 4.22 4.49 3.86
Receivables turnover 4.92 5.61 5.87 5.89 5.39
Payables turnover 6.83 7.45 7.40 8.36 8.03
Working capital turnover 5.87 2.76 4.48 5.44 8.82
Average No. Days
Average inventory processing period 94 91 87 81 95
Add: Average receivable collection period 74 65 62 62 68
Operating cycle 168 156 149 143 163
Less: Average payables payment period 53 49 49 44 45
Cash conversion cycle 115 107 100 99 118

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Thermo Fisher Scientific Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Thermo Fisher Scientific Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Thermo Fisher Scientific Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Thermo Fisher Scientific Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Short-term activity 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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Thermo Fisher Scientific Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Thermo Fisher Scientific Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.
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.
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. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of revenues 19,573 16,214 14,214 13,501 11,473
Inventories 5,051 4,029 3,370 3,005 2,971
Short-term Activity Ratio
Inventory turnover1 3.88 4.02 4.22 4.49 3.86
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 5.58 4.65 4.10 4.81 4.39
Amgen Inc. 1.58 1.58 1.22 1.39 1.44
Biogen Inc. 1.56 1.69 2.43 1.95 1.81
Eli Lilly & Co. 1.88 1.38 1.48 1.56 1.36
Gilead Sciences Inc. 4.08 2.72 5.07 5.96 5.46
Johnson & Johnson 2.87 3.04 3.05 3.15 2.89
Merck & Co. Inc. 2.29 2.45 2.36 2.48 2.51
Moderna Inc. 1.82 0.17
Pfizer Inc. 3.40 1.08 1.23 1.50 1.48
Regeneron Pharmaceuticals Inc. 1.25 0.58 0.55 0.38 0.55
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.90 2.37 2.35 2.51 2.36
Inventory Turnover, Industry
Health Care 10.75 9.84 9.98 8.45 8.55

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 19,573 ÷ 5,051 = 3.88

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Thermo Fisher Scientific Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Revenues 39,211 32,218 25,542 24,358 20,918
Accounts receivable, less allowances 7,977 5,741 4,349 4,136 3,879
Short-term Activity Ratio
Receivables turnover1 4.92 5.61 5.87 5.89 5.39
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 5.63 5.19 6.13 6.08 5.55
Amgen Inc. 4.96 5.36 5.47 6.29 6.73
Biogen Inc. 5.71 5.59 6.05 5.56 5.79
Eli Lilly & Co. 4.24 4.18 4.91 4.68 5.03
Gilead Sciences Inc. 6.01 4.98 6.18 6.52 6.66
Johnson & Johnson 6.14 6.08 5.67 5.79 5.67
Merck & Co. Inc. 5.28 6.11 6.91 5.98 5.84
Moderna Inc. 5.57 0.14 0.00 0.00
Pfizer Inc. 7.08 5.28 5.93 6.68 6.39
Regeneron Pharmaceuticals Inc. 2.66 2.07 2.94 2.99 2.97
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.46 5.15 5.76 5.83 5.76
Receivables Turnover, Industry
Health Care 9.42 9.44 9.84 8.67 9.29

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, less allowances
= 39,211 ÷ 7,977 = 4.92

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Thermo Fisher Scientific Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of revenues 19,573 16,214 14,214 13,501 11,473
Accounts payable 2,867 2,175 1,920 1,615 1,428
Short-term Activity Ratio
Payables turnover1 6.83 7.45 7.40 8.36 8.03
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc. 6.05 6.76 5.12 4.99 4.78
Amgen Inc. 4.72 4.33 3.18 3.40 3.01
Biogen Inc. 3.58 3.97 3.68 4.90 4.12
Eli Lilly & Co. 4.38 3.41 3.36 4.55 4.30
Gilead Sciences Inc. 9.36 5.42 6.56 6.14 5.37
Johnson & Johnson 2.70 2.99 3.23 3.59 3.47
Merck & Co. Inc. 2.96 3.37 3.78 4.07 4.12
Moderna Inc. 8.67 0.43 0.00 0.00
Pfizer Inc. 5.53 2.02 2.42 2.41 2.41
Regeneron Pharmaceuticals Inc. 4.32 2.36 1.87 1.99 2.23
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.31 3.73 3.70 3.99 3.82
Payables Turnover, Industry
Health Care 7.66 7.51 8.02 6.76 7.53

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 19,573 ÷ 2,867 = 6.83

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Thermo Fisher Scientific Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Working Capital Turnover

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 20,113 21,957 11,893 10,625 9,421
Less: Current liabilities 13,436 10,304 6,197 6,147 7,048
Working capital 6,677 11,653 5,696 4,478 2,373
 
Revenues 39,211 32,218 25,542 24,358 20,918
Short-term Activity Ratio
Working capital turnover1 5.87 2.76 4.48 5.44 8.82
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 0.98 6.16
Amgen Inc. 3.37 2.55 3.96 0.93 0.54
Biogen Inc. 2.49 3.40 3.23 2.51 2.30
Eli Lilly & Co. 8.33 4.93 11.54 2.84 4.90
Gilead Sciences Inc. 8.54 5.30 1.08 0.86 1.27
Johnson & Johnson 5.95 9.44 8.81 5.51 6.09
Merck & Co. Inc. 7.62 109.83 8.90 11.53 6.52
Moderna Inc. 2.55 0.10 0.00 0.00
Pfizer Inc. 4.78 4.58 2.97 4.90
Regeneron Pharmaceuticals Inc. 1.59 1.20 1.41 1.34 1.84
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.05 6.05 3.70 2.93 2.79
Working Capital Turnover, Industry
Health Care 13.29 13.61 8.91 7.35 6.30

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 39,211 ÷ 6,677 = 5.87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Thermo Fisher Scientific Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Inventory Processing Period

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 3.88 4.02 4.22 4.49 3.86
Short-term Activity Ratio (no. days)
Average inventory processing period1 94 91 87 81 95
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 65 79 89 76 83
Amgen Inc. 231 231 300 262 254
Biogen Inc. 234 216 150 187 202
Eli Lilly & Co. 194 265 247 233 268
Gilead Sciences Inc. 89 134 72 61 67
Johnson & Johnson 127 120 119 116 126
Merck & Co. Inc. 159 149 155 147 146
Moderna Inc. 201 2,141
Pfizer Inc. 107 338 296 244 246
Regeneron Pharmaceuticals Inc. 292 625 661 968 668
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 126 154 156 145 155
Average Inventory Processing Period, Industry
Health Care 34 37 37 43 43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.88 = 94

2 Click competitor name to see calculations.

Short-term activity 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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 4.92 5.61 5.87 5.89 5.39
Short-term Activity Ratio (no. days)
Average receivable collection period1 74 65 62 62 68
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 65 70 60 60 66
Amgen Inc. 74 68 67 58 54
Biogen Inc. 64 65 60 66 63
Eli Lilly & Co. 86 87 74 78 73
Gilead Sciences Inc. 61 73 59 56 55
Johnson & Johnson 59 60 64 63 64
Merck & Co. Inc. 69 60 53 61 63
Moderna Inc. 66 2,539
Pfizer Inc. 52 69 62 55 57
Regeneron Pharmaceuticals Inc. 137 177 124 122 123
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 67 71 63 63 63
Average Receivable Collection Period, Industry
Health Care 39 39 37 42 39

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.92 = 74

2 Click competitor name to see calculations.

Short-term activity 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. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Operating Cycle

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

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 94 91 87 81 95
Average receivable collection period 74 65 62 62 68
Short-term Activity Ratio
Operating cycle1 168 156 149 143 163
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 130 149 149 136 149
Amgen Inc. 305 299 367 320 308
Biogen Inc. 298 281 210 253 265
Eli Lilly & Co. 280 352 321 311 341
Gilead Sciences Inc. 150 207 131 117 122
Johnson & Johnson 186 180 183 179 190
Merck & Co. Inc. 228 209 208 208 209
Moderna Inc. 267 4,680
Pfizer Inc. 159 407 358 299 303
Regeneron Pharmaceuticals Inc. 429 802 785 1,090 791
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 193 225 219 208 218
Operating Cycle, Industry
Health Care 73 76 74 85 82

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 94 + 74 = 168

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Thermo Fisher Scientific Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 6.83 7.45 7.40 8.36 8.03
Short-term Activity Ratio (no. days)
Average payables payment period1 53 49 49 44 45
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc. 60 54 71 73 76
Amgen Inc. 77 84 115 107 121
Biogen Inc. 102 92 99 74 89
Eli Lilly & Co. 83 107 109 80 85
Gilead Sciences Inc. 39 67 56 59 68
Johnson & Johnson 135 122 113 102 105
Merck & Co. Inc. 123 108 97 90 89
Moderna Inc. 42 845
Pfizer Inc. 66 181 151 152 151
Regeneron Pharmaceuticals Inc. 84 155 195 183 164
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 85 98 99 91 96
Average Payables Payment Period, Industry
Health Care 48 49 46 54 48

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.83 = 53

2 Click competitor name to see calculations.

Short-term activity 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.

Cash Conversion Cycle

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

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 94 91 87 81 95
Average receivable collection period 74 65 62 62 68
Average payables payment period 53 49 49 44 45
Short-term Activity Ratio
Cash conversion cycle1 115 107 100 99 118
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc. 70 95 78 63 73
Amgen Inc. 228 215 252 213 187
Biogen Inc. 196 189 111 179 176
Eli Lilly & Co. 197 245 212 231 256
Gilead Sciences Inc. 111 140 75 58 54
Johnson & Johnson 51 58 70 77 85
Merck & Co. Inc. 105 101 111 118 120
Moderna Inc. 225 3,835
Pfizer Inc. 93 226 207 147 152
Regeneron Pharmaceuticals Inc. 345 647 590 907 627
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 108 127 120 117 122
Cash Conversion Cycle, Industry
Health Care 25 27 28 31 34

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 94 + 7453 = 115

2 Click competitor name to see calculations.

Short-term activity 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. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021.