Thermo Fisher Scientific Inc (TMO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,337,000 | 6,859,000 | 8,393,000 | 10,028,000 | 7,794,000 |
| Total assets | US$ in thousands | 97,321,000 | 98,726,000 | 97,154,000 | 95,123,000 | 69,052,000 |
| Operating ROA | 7.54% | 6.95% | 8.64% | 10.54% | 11.29% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,337,000K ÷ $97,321,000K
= 7.54%
Thermo Fisher Scientific Inc's operating return on assets (Operating ROA) has shown a declining trend over the period from December 31, 2020, to December 31, 2024. The trend indicates a decrease in the company's ability to generate operating income from its assets efficiently.
Starting at 11.29% on December 31, 2020, the Operating ROA decreased to 10.54% by December 31, 2021. This initial decrease suggests a slight drop in the company's operational efficiency in utilizing its assets to generate income.
The trend continued with a further decline to 8.64% by December 31, 2022, and 6.95% by December 31, 2023. These decreases indicate a potential challenge for the company in optimizing its asset utilization to generate operating income during these periods.
However, there was a slight improvement to 7.54% by December 31, 2024. This increase may suggest some efforts made by the company to enhance operational efficiency in utilizing its assets during that period.
Overall, the declining trend in Thermo Fisher Scientific Inc's Operating ROA from 2020 to 2024 highlights the importance of monitoring and improving operational efficiency and asset utilization to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2024