Thermo Fisher Scientific Inc (TMO)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	4,009,000	8,077,000	8,524,000	4,477,000	10,325,000
Short-term investments	US$ in thousands	1,561,000	-1,967,000	2,000	—	28,000
Total current liabilities	US$ in thousands	13,332,000	14,012,000	17,010,000	13,436,000	10,304,000
Cash ratio		0.42	0.44	0.50	0.33	1.00

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,009,000K + $1,561,000K) ÷ $13,332,000K
= 0.42

Thermo Fisher Scientific Inc's cash ratio has shown some fluctuations over the past five years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents, was at a solid 1.00 on December 31, 2020. However, there was a notable decrease in the cash ratio to 0.33 on December 31, 2021, indicating a lower ability to cover short-term liabilities with cash alone.

Subsequently, there was a slight improvement in the cash ratio to 0.50 on December 31, 2022, but it declined again to 0.44 on December 31, 2023. The cash ratio remained relatively stable at 0.42 on December 31, 2024, still demonstrating a moderate ability to meet short-term obligations with cash reserves.

Overall, Thermo Fisher Scientific Inc's cash ratio has shown some volatility but generally indicates a reasonable level of liquidity over the five-year period, with the company having the ability to cover a significant portion of its short-term liabilities with its cash holdings.