Thermo Fisher Scientific Inc (TMO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,336,000 | 8,109,000 | 7,892,000 | 7,490,000 | 7,489,000 | 7,494,000 | 7,272,000 | 7,469,000 | 8,575,000 | 9,297,000 | 9,889,000 | 10,129,000 | 10,386,000 | 10,717,000 | 10,833,000 | 10,014,000 | 7,871,000 | 6,057,000 | 4,611,000 | 4,258,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 16.82% | 16.55% | 16.64% | 16.46% | 16.03% | 16.53% | 16.62% | 17.68% | 19.50% | 21.35% | 23.38% | 24.73% | 25.46% | 27.69% | 29.39% | 28.56% | 22.81% | 19.03% | 15.43% | 14.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,336,000K ÷ ($—K + $49,551,000K)
= 16.82%
Thermo Fisher Scientific Inc's return on total capital has shown a generally positive trend over the past few years, indicating efficient use of both debt and equity to generate returns. The return on total capital increased from 14.91% as of March 31, 2020, to a peak of 29.39% as of June 30, 2021, before gradually declining to 16.82% as of December 31, 2024.
The company experienced significant growth in returns from 2020 to mid-2021, possibly driven by strategic investments and operational improvements. However, there was a slight decline in returns in the latter part of the period, which may be attributed to various factors such as changes in market conditions, increased competition, or shifts in the company's capital structure.
Overall, Thermo Fisher Scientific Inc has maintained a solid return on total capital throughout the period under review, demonstrating its ability to effectively utilize capital resources to generate profits. This ratio is crucial for investors and stakeholders as it provides insights into the company's profitability and efficiency in deploying capital to create value.
Peer comparison
Dec 31, 2024