Thermo Fisher Scientific Inc (TMO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,995,000 | 6,950,000 | 7,725,000 | 6,375,000 | 3,696,000 |
| Total assets | US$ in thousands | 98,726,000 | 97,154,000 | 95,123,000 | 69,052,000 | 58,381,000 |
| ROA | 6.07% | 7.15% | 8.12% | 9.23% | 6.33% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $5,995,000K ÷ $98,726,000K
= 6.07%
Thermo Fisher Scientific Inc.'s return on assets (ROA) has shown a declining trend over the past five years, decreasing from 6.33% in 2019 to 6.07% in 2023. A lower ROA indicates that the company is generating less profit per dollar of assets employed.
The company's ROA peaked in 2020 at 9.23%, which signifies that Thermo Fisher Scientific was more efficient in utilizing its assets to generate profits during that year. However, the subsequent decrease in ROA may suggest challenges in maintaining or improving operational efficiency and profitability.
It is essential for Thermo Fisher Scientific to analyze the factors contributing to the decline in ROA and implement strategies to enhance asset utilization and overall profitability. Monitoring and improving ROA can help the company assess its financial performance relative to the assets at its disposal and optimize operational efficiency.
Peer comparison
Dec 31, 2023