Thermo Fisher Scientific Inc (TMO)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	41,415,000	44,225,000	37,933,000	31,689,000	24,734,000
Total assets	US$ in thousands	98,726,000	97,154,000	95,123,000	69,052,000	58,381,000
Total asset turnover		0.42	0.46	0.40	0.46	0.42

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $41,415,000K ÷ $98,726,000K
= 0.42

Thermo Fisher Scientific Inc.'s total asset turnover has varied over the past five years, ranging from 0.41 to 0.47. This ratio measures the efficiency of the company in generating sales revenue from its total assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate revenue.

In 2023, the total asset turnover decreased to 0.43 from 0.46 in 2022, suggesting a slight decline in the company's efficiency in generating sales from its assets. It is essential to investigate the reasons behind this decline, such as changes in the company's asset management strategies or sales performance.

Comparing the 2023 ratio to prior years, Thermo Fisher Scientific's total asset turnover was slightly below the 5-year average of 0.44. This deviation could imply a temporary inefficiency in asset utilization that may require attention to improve in subsequent periods.

Overall, consistent monitoring of the total asset turnover ratio is crucial to assess Thermo Fisher Scientific's operational efficiency and identify opportunities for enhancing asset utilization to drive revenue growth.