Thermo Fisher Scientific Inc (TMO)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	46,735,000	43,978,000	40,793,000	34,507,000	29,675,000
ROE		12.83%	15.80%	18.94%	18.47%	12.45%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,995,000K ÷ $46,735,000K
= 12.83%

Thermo Fisher Scientific Inc.'s return on equity (ROE) has shown a declining trend over the past five years, decreasing from 12.45% in 2019 to 12.83% in 2023. This suggests a decrease in the company's ability to generate profits from its shareholders' equity during this period. The ROE was relatively stable between 18.47% in 2020 and 18.94% in 2021, indicating a consistent performance in utilizing equity to generate returns. However, the drop to 12.83% in 2023 may raise concerns about the company's efficiency in utilizing shareholders' equity to generate profits. Further analysis of Thermo Fisher Scientific Inc.'s financial performance and operational efficiency may be necessary to understand the factors contributing to the fluctuation in ROE over these years.