Thermo Fisher Scientific Inc (TMO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.04 | 4.60 | 4.78 | 4.87 | 4.97 | 4.74 | 4.55 | 4.53 | 4.51 | 4.19 | 3.93 | 3.76 | 3.76 | 3.78 | 3.91 | 3.89 | 3.90 | 3.79 | 3.79 | 4.03 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.87 | 4.61 | 3.96 | 4.38 | 4.05 | 4.86 | 7.40 | 10.13 | 5.46 | 5.40 | 6.03 | 6.13 | 5.87 | 2.30 | 3.10 | 3.36 | 2.76 | 2.37 | 2.69 | 3.54 |
Thermo Fisher Scientific Inc's inventory turnover ratio has shown a fluctuating trend over the past five years, ranging from a low of 3.76 to a high of 5.04. The ratio has been relatively stable in recent quarters, with a gradual increase observed by the end of 2024, indicating that the company's inventory is being managed more efficiently.
The receivables turnover ratio was not provided, indicating that information on how quickly the company collects its receivables is not available. Therefore, it is not possible to analyze the efficiency of Thermo Fisher's accounts receivable management based on this data.
Similarly, the payables turnover ratio data was not provided, preventing an assessment of how quickly the company pays its suppliers.
In terms of working capital turnover, the ratio has shown significant variability over the past few years, with a low of 2.30 and a high of 10.13. The ratio spiked in the first quarter of 2023, suggesting that the company was utilizing its working capital more efficiently during that period.
Overall, based on the available data, Thermo Fisher Scientific Inc's activity ratios signal mixed results, with efficient inventory management highlighted by the increasing inventory turnover ratio and fluctuating working capital turnover ratios indicating varying levels of working capital utilization efficiency over the years.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.43 | 79.33 | 76.32 | 74.98 | 73.42 | 76.99 | 80.25 | 80.64 | 80.91 | 87.01 | 92.82 | 96.99 | 97.15 | 96.57 | 93.40 | 93.75 | 93.59 | 96.28 | 96.24 | 90.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Thermo Fisher Scientific Inc's Days of Inventory on Hand (DOH) has shown a decreasing trend over the analyzed period, starting at 90.62 days as of March 31, 2020, and reaching 72.43 days by December 31, 2024. This indicates that the company has been managing its inventory more efficiently as it takes fewer days to sell its inventory, which is a positive sign.
Unfortunately, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available for analysis. DSO and Payables turnover are important metrics as they provide insights into the company's efficiency in collecting receivables and managing payables. Lack of this data limits a comprehensive assessment of Thermo Fisher's working capital management.
In conclusion, although Thermo Fisher Scientific Inc has made progress in managing its inventory efficiently, a complete analysis of its activity ratios is hindered by the absence of DSO and Payables turnover figures. It is advisable for the company to provide more comprehensive data to enable a more thorough evaluation of its operational efficiency.
See also:
Thermo Fisher Scientific Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.74 | 4.68 | 4.68 | 4.84 | 5.12 | 5.02 | 4.87 | 4.71 | 5.54 | 5.83 | 5.85 | 5.45 | 5.50 | 5.37 | 5.42 |
| Total asset turnover | 0.44 | 0.42 | 0.43 | 0.44 | 0.43 | 0.45 | 0.46 | 0.46 | 0.46 | 0.49 | 0.47 | 0.44 | 0.41 | 0.53 | 0.57 | 0.54 | 0.47 | 0.44 | 0.43 | 0.44 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- Thermo Fisher Scientific Inc's fixed asset turnover ratio has shown some fluctuations over the years. The ratio decreased from 5.42 in March 2020 to 4.71 in December 2021 before increasing to 5.12 in September 2022. It then dropped to 4.68 by June 2023.
- The company's fixed asset turnover indicates the company's ability to generate sales from its investment in fixed assets. A higher ratio suggests better efficiency in utilizing fixed assets to generate revenue.
2. Total Asset Turnover:
- Thermo Fisher Scientific Inc's total asset turnover ratio has also experienced variability. The ratio moved from 0.44 in March 2020 to 0.53 in September 2021 before decreasing to 0.41 by December 2021. It then picked up to 0.49 by September 2022.
- The total asset turnover ratio reflects the company's ability to generate sales relative to its total assets. A higher ratio indicates that the company is efficiently using its assets to generate revenue.
Overall, the fixed asset turnover and total asset turnover ratios of Thermo Fisher Scientific Inc suggest that the company has been managing its assets effectively to generate sales, although some fluctuations can be observed over the period under consideration. Monitoring these ratios can provide valuable insights into the company's operational efficiency and asset utilization.
See also:
Thermo Fisher Scientific Inc Long-term (Investment) Activity Ratios (Quarterly Data)