Thermo Fisher Scientific Inc (TMO)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	6,336,000	6,136,000	6,221,000	6,034,000	5,995,000	5,941,000	5,721,000	6,024,000	6,950,000	7,032,000	7,439,000	7,603,000	7,725,000	8,565,000	8,596,000	7,924,000	6,375,000	4,879,000	3,706,000	3,669,000
Total stockholders’ equity	US$ in thousands	49,551,000	48,992,000	47,432,000	45,516,000	46,724,000	45,328,000	43,752,000	42,257,000	43,978,000	43,549,000	42,293,000	40,956,000	40,793,000	38,710,000	36,854,000	35,058,000	34,507,000	31,824,000	29,875,000	28,559,000
ROE		12.79%	12.52%	13.12%	13.26%	12.83%	13.11%	13.08%	14.26%	15.80%	16.15%	17.59%	18.56%	18.94%	22.13%	23.32%	22.60%	18.47%	15.33%	12.41%	12.85%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $6,336,000K ÷ $49,551,000K
= 12.79%

Thermo Fisher Scientific Inc's return on equity (ROE) has shown some fluctuations over the past few years. Starting at 12.85% in March 2020, the ROE increased steadily, reaching a peak of 23.32% in June 2021. This upward trend indicates improved efficiency in utilizing equity to generate profits for shareholders.

However, after June 2021, the ROE began to decline, dropping to 12.79% by December 2024. The decreasing trend may suggest challenges in maintaining or further enhancing the company's profitability relative to its equity base.

Despite the fluctuations, Thermo Fisher Scientific Inc's ROE remained above 10% throughout the period, indicating that the company has been generally effective in generating returns for its shareholders. Investors and analysts may want to further investigate the factors contributing to the recent decline in ROE to assess the company's future financial performance and sustainability.