Thermo Fisher Scientific Inc (TMO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.96 | 2.11 | 2.21 | 2.33 | 2.00 |
Thermo Fisher Scientific Inc has consistently displayed a strong solvency position, as indicated by its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been maintained at 0.00 over the period from December 31, 2020, to December 31, 2024. This suggests that the company has no financial leverage stemming from debt in relation to its assets, capital, or equity, highlighting a low-risk solvency profile.
Furthermore, the Financial leverage ratio has shown a decreasing trend over the same period, declining from 2.00 in 2020 to 1.96 in 2024. This indicates that the company's reliance on debt financing in relation to its equity has been decreasing, leading to a stronger financial position and reduced financial risk over time.
Overall, Thermo Fisher Scientific Inc's solvency ratios reflect a stable and robust financial structure, with minimal debt dependency and a decreasing trend in financial leverage, indicating a solid foundation for long-term financial stability and growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.06 | 4.99 | 11.79 | 19.35 | 14.23 |
Thermo Fisher Scientific Inc's interest coverage ratio has fluctuated over the past five years, reflecting the company's ability to meet its interest obligations.
As of December 31, 2020, the interest coverage ratio stood at 14.23, indicating that the company generated earnings 14.23 times greater than its interest expenses. This suggests a strong ability to cover interest payments.
By December 31, 2021, the interest coverage ratio improved to 19.35, signaling further strength in the company's ability to service its debt obligations.
However, there was a significant decrease in the interest coverage ratio by December 31, 2022, falling to 11.79. This may suggest a slight weakening in the company's ability to cover its interest expenses comfortably.
The interest coverage ratio further declined to 4.99 by December 31, 2023, indicating a potential increased financial risk as earnings may be insufficient to cover interest payments.
Subsequently, the interest coverage ratio improved slightly to 6.06 as of December 31, 2024. Despite the improvement, the ratio remains relatively low compared to previous years.
Overall, Thermo Fisher Scientific Inc's interest coverage has shown some fluctuations over the years, highlighting the importance of monitoring the company's ability to generate earnings to cover its interest obligations effectively.