Thermo Fisher Scientific Inc (TMO)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,279,000 | 7,653,000 | 8,834,000 | 7,225,000 | 4,070,000 |
| Revenue | US$ in thousands | 41,415,000 | 44,225,000 | 37,933,000 | 31,689,000 | 24,734,000 |
| Pretax margin | 15.16% | 17.30% | 23.29% | 22.80% | 16.46% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $6,279,000K ÷ $41,415,000K
= 15.16%
Thermo Fisher Scientific Inc.'s pretax margin has shown a declining trend over the past five years. The company's pretax margin decreased from 15.93% in 2019 to 14.56% in 2023. This indicates a decrease in the company's ability to generate profits before accounting for taxes as a percentage of its total revenue.
The pretax margin was at its peak in 2021 at 22.54%, but has since been declining. This downward trend raises concerns about the company's cost management, efficiency, or pricing strategies. It suggests that the company may be facing challenges in controlling costs or experiencing pricing pressures that are impacting its profitability.
Further analysis would be needed to understand the specific factors driving the decline in pretax margin and to evaluate the company's overall financial health and performance.
Peer comparison
Dec 31, 2023