Thermo Fisher Scientific Inc (TMO)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	41,415,000	42,229,000	42,518,000	42,979,000	44,225,000	42,978,000	41,676,000	40,005,000	37,933,000	38,365,000	37,540,000	35,169,000	31,689,000	28,090,000	25,821,000	25,176,000	25,008,000	24,686,000	24,336,000	24,109,000
Property, plant and equipment	US$ in thousands	9,448,000	9,167,000	9,292,000	9,354,000	9,280,000	8,628,000	8,529,000	8,448,000	8,333,000	7,049,000	6,560,000	6,133,000	5,912,000	5,180,000	4,887,000	4,736,000	4,749,000	4,420,000	4,394,000	4,192,000
Fixed asset turnover		4.38	4.61	4.58	4.59	4.77	4.98	4.89	4.74	4.55	5.44	5.72	5.73	5.36	5.42	5.28	5.32	5.27	5.59	5.54	5.75

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $41,415,000K ÷ $9,448,000K
= 4.38

Thermo Fisher Scientific Inc.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 4.54 to 5.12. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio generally suggests better efficiency in asset utilization.

The slight fluctuations in the fixed asset turnover ratio over the quarters may be attributed to changes in business operations, asset management strategies, or revenue generation patterns. The overall trend shows a consistent ability of the company to generate sales relative to its investment in fixed assets.

An average fixed asset turnover ratio of approximately 4.85 over the eight quarters reflects Thermo Fisher's effective management of its fixed assets to drive revenue generation. Investors and stakeholders may view this as a positive indicator of the company's operational efficiency and capital allocation strategies.