Thermo Fisher Scientific Inc (TMO)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,859,000 | 6,866,000 | 6,712,000 | 7,135,000 | 8,393,000 | 9,070,000 | 9,638,000 | 9,800,000 | 10,028,000 | 10,561,000 | 10,709,000 | 9,937,000 | 7,794,000 | 5,955,000 | 4,475,000 | 4,580,000 | 4,594,000 | 4,510,000 | 4,476,000 | 3,917,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 18,773,000 | 18,641,000 | 19,107,000 | 21,091,000 | 20,638,000 | 19,231,000 | 17,076,000 | 16,392,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 46,735,000 | 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 | 29,675,000 | 29,355,000 | 28,729,000 | 27,693,000 |
| Return on total capital | 14.68% | 15.15% | 15.34% | 16.88% | 19.08% | 20.83% | 22.79% | 23.93% | 24.58% | 27.28% | 19.25% | 18.51% | 14.54% | 11.25% | 8.86% | 9.58% | 9.83% | 9.86% | 15.58% | 14.14% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,859,000K ÷ ($—K + $46,735,000K)
= 14.68%
Thermo Fisher Scientific Inc.'s return on total capital has exhibited a declining trend over the past eight quarters from Q1 2022 to Q4 2023. The return stood at 13.42% in Q1 2022, gradually decreasing to 8.89% in Q4 2023. This decline indicates a potential decrease in the ability of the company to generate earnings from its total capital employed. Factors influencing this trend could include changes in the company's profitability, operational efficiency, or capital structure. Further analysis and comparison with industry benchmarks may provide valuable insights into the company's financial performance and efficiency in utilizing its total capital.
Peer comparison
Dec 31, 2023