Thermo Fisher Scientific Inc (TMO)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	49,551,000	46,735,000	43,978,000	40,793,000	34,507,000
ROE		12.78%	12.83%	15.80%	18.94%	18.47%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $6,335,000K ÷ $49,551,000K
= 12.78%

Thermo Fisher Scientific Inc's Return on Equity (ROE) has shown a relatively stable trend over the past five years. The ROE increased from 18.47% in 2020 to 18.94% in 2021, indicating an improvement in the company's ability to generate profit from shareholders' equity. However, there was a slight decline in ROE to 15.80% in 2022 and a further decrease to 12.83% in 2023. The trend continued with an ROE of 12.78% in 2024, which suggests a decreasing profitability relative to the shareholders' equity over the years.

It is important for Thermo Fisher Scientific Inc to closely monitor this trend and analyze the factors contributing to the decline in ROE. Identifying the underlying reasons for the decreasing ROE can help the company make informed decisions to improve its financial performance and enhance shareholder value in the future.