Thermo Fisher Scientific Inc (TMO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,009,000 | 4,645,000 | 7,084,000 | 5,506,000 | 8,077,000 | 6,151,000 | 3,133,000 | 3,482,000 | 8,524,000 | 2,919,000 | 1,888,000 | 2,752,000 | 4,477,000 | 12,027,000 | 7,023,000 | 5,583,000 | 10,325,000 | 7,540,000 | 5,818,000 | 2,981,000 |
| Short-term investments | US$ in thousands | 1,561,000 | 2,000,000 | 1,750,000 | 1,751,000 | 3,000 | — | — | — | 2,000 | 22,000 | 5,000 | 150,000 | — | — | 65,000 | 121,000 | 28,000 | 697,000 | — | 110,000 |
| 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 |
| Cash ratio | 0.42 | 0.46 | 0.60 | 0.52 | 0.58 | 0.43 | 0.22 | 0.22 | 0.50 | 0.26 | 0.17 | 0.24 | 0.33 | 1.55 | 1.02 | 0.82 | 1.00 | 1.32 | 0.97 | 0.56 |
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 fluctuations over the analyzed periods. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
The cash ratio for Thermo Fisher has varied between 0.17 to 1.55 over the periods from June 30, 2022, to September 30, 2021, respectively. Notably, the cash ratio peaked at 1.55 as of September 30, 2021, indicating a significant increase in liquidity, likely due to higher cash reserves compared to short-term liabilities at that point.
Conversely, the company experienced a significant drop in the cash ratio to 0.17 as of June 30, 2022, reflecting a lower ability to cover short-term obligations with available cash. This may suggest potential issues with liquidity management or increased short-term liabilities relative to cash reserves during that period.
Overall, it is essential to closely monitor Thermo Fisher's cash ratio trends to assess its liquidity position effectively. Maintaining a healthy cash ratio is crucial for meeting financial obligations promptly and with confidence.
Peer comparison
Dec 31, 2024