Thermo Fisher Scientific Inc (TMO)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	19,107,000	17,076,000
Total stockholders’ equity	US$ in thousands	46,735,000	43,978,000	40,793,000	34,507,000	29,675,000
Debt-to-equity ratio		0.00	0.00	0.00	0.55	0.58

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $46,735,000K
= 0.00

The debt-to-equity ratio of Thermo Fisher Scientific Inc. has shown fluctuations over the past five years, ranging from 0.60 in 2019 to 0.85 in 2021. The ratio decreased to 0.63 in 2020 before experiencing a slight increase to 0.78 in 2022. However, in the most recent year, 2023, the ratio decreased again to 0.75.

A lower debt-to-equity ratio indicates that the company relies less on debt financing and has a stronger equity position, which can be favorable for investors and creditors. On the other hand, a higher ratio suggests a greater reliance on debt, which may pose higher financial risk.

Overall, the decreasing trend in the debt-to-equity ratio from 2021 to 2023 indicates a reduction in the company's debt relative to its equity, which may signify improved financial stability and lower risk for stakeholders. However, it is essential to consider other financial metrics and factors when evaluating the company's overall financial health and leverage position.