Thermo Fisher Scientific Inc (TMO)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 2,399,000 | 1,273,000 | 2,288,000 | 1,106,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 2,000 | 22,000 | 5,000 | 150,000 | — | — | 65,000 | 121,000 | 28,000 | 697,000 | — | 110,000 | — | 7,000 | 6,000 | 9,000 |
| Receivables | US$ in thousands | 8,221,000 | 8,370,000 | 8,019,000 | — | 8,115,000 | — | — | — | 7,977,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 6,197,000 | 5,844,000 | 7,509,000 | 5,898,000 |
| Quick ratio | 1.16 | 1.03 | 0.79 | 0.22 | 0.98 | 0.26 | 0.17 | 0.24 | 0.93 | 1.55 | 1.02 | 0.82 | 1.00 | 1.32 | 0.97 | 0.56 | 0.39 | 0.22 | 0.31 | 0.19 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,077,000K
+ $—K
+ $8,221,000K)
÷ $14,012,000K
= 1.16
The quick ratio of Thermo Fisher Scientific Inc. has shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
Thermo Fisher's quick ratio has generally been above 1, indicating that the company has sufficient liquid assets to cover its current liabilities. A quick ratio above 1 is considered a healthy sign as it suggests that the company can easily meet its short-term obligations without having to rely heavily on selling its inventory.
The quick ratio peaked at 1.39 in Q4 2023, indicating a strong ability to cover short-term liabilities with liquid assets. However, in Q1 2023, the quick ratio decreased to 0.92, which may raise concerns about the company's liquidity position during that period.
Overall, the trend of the quick ratio for Thermo Fisher Scientific Inc. has been relatively stable, with fluctuations within a reasonable range. This suggests that the company has been managing its liquidity effectively and has the ability to meet its short-term obligations comfortably.
Peer comparison
Dec 31, 2023