Thermo Fisher Scientific Inc (TMO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 24,589,000 | 25,229,000 | 20,113,000 | 21,957,000 | 11,893,000 |
| Total current liabilities | US$ in thousands | 14,012,000 | 17,010,000 | 13,436,000 | 10,304,000 | 6,197,000 |
| Current ratio | 1.75 | 1.48 | 1.50 | 2.13 | 1.92 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,589,000K ÷ $14,012,000K
= 1.75
The current ratio for Thermo Fisher Scientific Inc. has varied over the past five years, ranging from 1.48 to 2.13. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of liquidity.
In 2020, Thermo Fisher had a relatively high current ratio of 2.13, which suggests a comfortable buffer of current assets to cover its short-term obligations. However, this ratio declined in the following years, with a notable decrease to 1.48 in 2022. This could indicate a potential strain on liquidity or an increase in current liabilities relative to current assets.
The current ratio improved in 2023 to 1.75 but still remains below the 2020 level. Overall, the trend in the current ratio for Thermo Fisher Scientific Inc. highlights the importance of closely monitoring changes in liquidity and managing current assets and liabilities effectively to ensure the company can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023