Thermo Fisher Scientific Inc (TMO)

Working capital 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
Total current assets	US$ in thousands	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	11,893,000	10,514,000	11,223,000	9,939,000
Total current liabilities	US$ in thousands	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	6,197,000	5,844,000	7,509,000	5,898,000
Working capital turnover		3.92	4.73	7.23	9.94	5.38	5.25	5.87	5.97	5.68	2.26	3.04	3.29	2.72	2.34	2.65	3.48	4.39	5.29	6.55	5.97

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $41,415,000K ÷ ($24,589,000K – $14,012,000K)
= 3.92

Thermo Fisher Scientific Inc.'s working capital turnover has displayed fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital to generate sales.

In Q1 2023, the working capital turnover was 10.13, which was the highest among the reported quarters, implying that the company generated $10.13 in revenue for every dollar of working capital invested. This suggests a high level of efficiency in utilizing the company's working capital to generate sales.

Conversely, in Q4 2023, the working capital turnover ratio decreased to 4.05, which represents a significant decline from the previous quarter. This lower ratio could indicate decreased efficiency in converting working capital into revenue compared to the previous quarter.

Overall, Thermo Fisher Scientific Inc.'s working capital turnover has experienced fluctuations, with some quarters showing higher efficiency in utilizing working capital to generate revenue compared to others. Further analysis and examination of the company's working capital management practices may be necessary to understand the reasons behind these fluctuations.