Thermo Fisher Scientific Inc (TMO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.23% | 40.98% | 43.42% | 51.60% | 51.23% |
| Operating profit margin | 17.11% | 16.00% | 18.69% | 25.57% | 24.19% |
| Pretax margin | 16.41% | 14.70% | 17.44% | 22.55% | 22.43% |
| Net profit margin | 14.77% | 13.99% | 15.47% | 19.70% | 19.79% |
Thermo Fisher Scientific Inc's profitability ratios show a mixed trend over the years. The gross profit margin has fluctuated, starting at 51.23% in 2020 and peaking at 51.60% in 2021 before declining to 40.98% in 2023, with a slight recovery to 42.23% in 2024. This may indicate variations in the cost of goods sold relative to revenue.
The operating profit margin, a measure of operating efficiency, increased from 24.19% in 2020 to 25.57% in 2021, and then decreased to 16.00% in 2023, before rising to 17.11% in 2024. The fluctuation suggests changes in operating expenses impacting profitability.
Thermo Fisher's pretax margin saw a similar downward trend, starting at 22.43% in 2020 and declining to 14.70% in 2023, before improving slightly to 16.41% in 2024. This ratio indicates the firm's ability to generate profits before taxes on its total revenue.
The net profit margin, which reflects the company's overall profitability, decreased from 19.79% in 2020 to 13.99% in 2023, with a modest recovery to 14.77% in 2024. This reduction in net profit margin could be attributed to various factors such as changes in operating expenses, taxes, or other non-operating items impacting the bottom line.
Overall, Thermo Fisher Scientific Inc's profitability ratios demonstrate some fluctuations, highlighting the importance of closely monitoring cost management, operational efficiency, and revenue generation strategies to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.54% | 6.95% | 8.64% | 10.54% | 11.29% |
| Return on assets (ROA) | 6.51% | 6.07% | 7.15% | 8.12% | 9.23% |
| Return on total capital | 17.01% | 14.68% | 19.46% | 25.43% | 22.80% |
| Return on equity (ROE) | 12.78% | 12.83% | 15.80% | 18.94% | 18.47% |
Thermo Fisher Scientific Inc's profitability ratios have shown a general downward trend over the years based on the provided data.
1. Operating return on assets (Operating ROA) decreased from 11.29% in 2020 to 7.54% in 2024. This indicates that the company's operating profit generated from its assets has been declining.
2. Return on assets (ROA) also decreased from 9.23% in 2020 to 6.51% in 2024, showing a decreasing trend in the overall profitability of the company's assets.
3. Return on total capital decreased from 22.80% in 2020 to 17.01% in 2024, showing a decline in the return generated from the total invested capital in the company.
4. Return on equity (ROE) followed a similar trend, declining from 18.47% in 2020 to 12.78% in 2024, indicating a decrease in the return earned on equity investments.
Overall, the declining trend in these profitability ratios suggests that Thermo Fisher Scientific Inc may be facing challenges in generating returns from its assets, total capital, and equity investments. It could indicate potential issues with operational efficiency and effectiveness in utilizing resources to generate profits.