Thermo Fisher Scientific Inc (TMO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 6,859,000 | 6,866,000 | 6,712,000 | 7,135,000 | 8,393,000 | 9,070,000 | 9,638,000 | 9,800,000 | 10,028,000 | 10,561,000 | 10,709,000 | 9,937,000 | 7,794,000 | 5,955,000 | 4,475,000 | 4,580,000 | 4,594,000 | 4,510,000 | 4,476,000 | 3,917,000 |
| Total assets | US$ in thousands | 98,726,000 | 97,057,000 | 94,105,000 | 94,658,000 | 97,154,000 | 90,536,000 | 90,579,000 | 92,747,000 | 95,123,000 | 73,600,000 | 67,698,000 | 65,931,000 | 69,052,000 | 64,061,000 | 61,593,000 | 58,688,000 | 58,381,000 | 56,729,000 | 57,970,000 | 55,596,000 |
| Operating ROA | 6.95% | 7.07% | 7.13% | 7.54% | 8.64% | 10.02% | 10.64% | 10.57% | 10.54% | 14.35% | 15.82% | 15.07% | 11.29% | 9.30% | 7.27% | 7.80% | 7.87% | 7.95% | 7.72% | 7.05% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ 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 eight quarters. The operating ROA was at its highest in Q1 2022 at 10.77% and has since decreased steadily to 7.41% in Q4 2023. This trend indicates a decrease in the company's ability to generate earnings from its assets through operations over the period.
The decline in operating ROA could be attributed to various factors such as changes in operating efficiency, pricing pressures, increased operating expenses, or declining revenues. Additionally, changes in asset utilization or asset turnover ratios could have also influenced the downward trend in operating ROA.
It is essential for Thermo Fisher Scientific Inc. to analyze the drivers behind the decreasing operating ROA and implement strategies to improve operational efficiency, optimize asset utilization, and enhance overall profitability to reverse this trend in the future quarters. By focusing on these areas, the company can potentially improve its operating ROA and enhance its financial performance.
Peer comparison
Dec 31, 2023