Thermo Fisher Scientific Inc (TMO)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 22,137,000 | 23,783,000 | 25,476,000 | 23,640,000 | 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 |
| 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 |
| Current ratio | 1.66 | 1.63 | 1.72 | 1.70 | 1.75 | 1.63 | 1.42 | 1.27 | 1.48 | 1.74 | 1.65 | 1.56 | 1.50 | 3.19 | 2.78 | 2.53 | 2.13 | 2.93 | 2.62 | 2.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $22,137,000K ÷ $13,332,000K
= 1.66
Thermo Fisher Scientific Inc's current ratio has fluctuated over the past five years, ranging from a low of 1.27 to a high of 3.19. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting it is able to meet its short-term obligations.
From March 31, 2020, to September 30, 2021, the current ratio showed a positive trend, increasing steadily from 2.32 to 3.19. This indicates improving liquidity and a stronger ability to cover short-term debts. However, there was a notable decline in the current ratio at the end of 2021, dropping to 1.50 by December 31, 2021, which raised concerns about the company's short-term liquidity position.
Subsequently, the current ratio continued to fluctuate throughout 2022 and 2023, remaining mostly below 2. This suggests that the company may have faced challenges in managing its short-term liabilities during these periods.
By the end of December 31, 2024, Thermo Fisher Scientific Inc's current ratio had climbed back to 1.66. While still below the ideal current ratio of 2, this improvement indicates the company may have taken steps to enhance its liquidity position.
Overall, the analysis of the current ratio suggests that Thermo Fisher Scientific Inc has experienced fluctuations in its short-term liquidity over the past five years, with periods of both strength and weakness. Continued monitoring of the current ratio will be important to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024