Thermo Fisher Scientific Inc (TMO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 98,726,000 | 97,154,000 | 95,123,000 | 69,052,000 | 58,381,000 |
| Total stockholders’ equity | US$ in thousands | 46,735,000 | 43,978,000 | 40,793,000 | 34,507,000 | 29,675,000 |
| Financial leverage ratio | 2.11 | 2.21 | 2.33 | 2.00 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $98,726,000K ÷ $46,735,000K
= 2.11
Thermo Fisher Scientific Inc.'s financial leverage ratio has shown variation in recent years. The ratio has fluctuated between 1.97 in 2019 to 2.33 in 2021, indicating changes in the company's capital structure and its reliance on debt to finance its operations. In 2020, the ratio decreased to 2.00 before slightly increasing to 2.21 in 2022 and then decreasing again to 2.11 in 2023. Overall, the trend suggests that the company has been moderately leveraged over the past five years, with 2021 standing out as the year with the highest leverage. The shift in the ratio over the years may signal adjustments in Thermo Fisher Scientific's financing strategy or changes in its debt levels relative to its equity. A high leverage ratio may indicate higher financial risk and interest burden, while a low ratio could signify a conservative approach to financing.
Peer comparison
Dec 31, 2023