Thermo Fisher Scientific Inc (TMO)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	6,859,000	8,393,000	10,028,000	7,794,000	4,594,000
Total assets	US$ in thousands	98,726,000	97,154,000	95,123,000	69,052,000	58,381,000
Operating ROA		6.95%	8.64%	10.54%	11.29%	7.87%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $6,859,000K ÷ $98,726,000K
= 6.95%

Thermo Fisher Scientific Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past five years. The company's operating ROA was 7.41% in 2023, down from 8.76% in 2022, 10.75% in 2021, and 11.43% in 2020. The lowest operating ROA in the 5-year period was 7.16% in 2019. This decreasing trend indicates that the company may be experiencing challenges in generating operating profits relative to its asset base. Further analysis of the company's operational efficiency and asset utilization may be necessary to address this decline in operating ROA.

Peer comparison

Dec 31, 2023

Company name

Symbol

Operating ROA

Thermo Fisher Scientific Inc

TMO

6.95%

Onto Innovation Inc

ONTO

6.08%

Rockwell Automation Inc