Thermo Fisher Scientific Inc (TMO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,335,000 | 5,995,000 | 6,950,000 | 7,725,000 | 6,375,000 |
| Total assets | US$ in thousands | 97,321,000 | 98,726,000 | 97,154,000 | 95,123,000 | 69,052,000 |
| ROA | 6.51% | 6.07% | 7.15% | 8.12% | 9.23% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $6,335,000K ÷ $97,321,000K
= 6.51%
Thermo Fisher Scientific Inc's return on assets (ROA) has shown a declining trend over the past five years. Starting at 9.23% on December 31, 2020, the ROA decreased to 8.12% by the end of 2021, further dropping to 7.15% by the end of 2022. The downward trend continued with ROA decreasing to 6.07% on December 31, 2023, before witnessing a slight increase to 6.51% by the end of 2024.
This indicates that the company's ability to generate profits from its assets has been diminishing gradually. A decreasing ROA could suggest inefficiencies in asset utilization or declining profitability relative to the size of the asset base. Thermo Fisher Scientific Inc may need to assess its asset management strategies and operational efficiency to enhance its ROA in the future.
Peer comparison
Dec 31, 2024