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.