Thermo Fisher Scientific Inc (TMO)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	42,879,000	42,370,000	42,346,000	42,492,000	42,857,000	43,421,000	43,524,000	43,807,000	44,915,000	44,167,000	42,820,000	41,123,000	39,211,000	39,059,000	38,250,000	35,894,000	32,218,000	28,497,000	26,248,000	25,647,000
Total current assets	US$ in thousands	22,137,000	23,783,000	25,476,000	23,640,000	24,589,000	23,092,000	19,995,000	20,209,000	25,229,000	19,299,000	18,100,000	18,776,000	20,113,000	24,724,000	19,260,000	17,685,000	21,957,000	18,234,000	15,775,000	12,738,000
Total current liabilities	US$ in thousands	13,332,000	14,601,000	14,772,000	13,937,000	14,012,000	14,158,000	14,112,000	15,884,000	17,010,000	11,118,000	10,997,000	12,070,000	13,436,000	7,753,000	6,925,000	6,995,000	10,304,000	6,228,000	6,013,000	5,500,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $42,879,000K ÷ ($22,137,000K – $13,332,000K)
= 4.87

Thermo Fisher Scientific Inc's working capital turnover has shown fluctuations over the periods from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

The trend indicates that over the analyzed period, Thermo Fisher Scientific Inc's working capital turnover initially ranged between 2.37 and 3.54, showing some level of consistency. However, there was a noticeable increase starting from March 31, 2021, where the ratio began to steadily rise, reaching a peak of 10.13 on March 31, 2023. This significant increase suggests that the company improved its efficiency in utilizing its working capital to generate sales.

Subsequently, the working capital turnover ratio decreased in the following periods but remained relatively higher compared to the initial values. The ratio ranged between 3.96 and 6.13 from June 30, 2024, to March 31, 2022, indicating that the company continued to effectively leverage its working capital to support its revenue generation activities.

Overall, the trend in Thermo Fisher Scientific Inc's working capital turnover reflects a positive shift towards greater efficiency in utilizing its working capital to generate sales revenue, which is a favorable indicator of the company's operational performance and financial health.