Thermo Fisher Scientific Inc (TMO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 97,321,000 | 98,726,000 | 97,154,000 | 95,123,000 | 69,052,000 |
| Total stockholders’ equity | US$ in thousands | 49,551,000 | 46,735,000 | 43,978,000 | 40,793,000 | 34,507,000 |
| Financial leverage ratio | 1.96 | 2.11 | 2.21 | 2.33 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $97,321,000K ÷ $49,551,000K
= 1.96
Thermo Fisher Scientific Inc's financial leverage ratio has shown fluctuation over the past five years, ranging from 1.96 to 2.33. The ratio indicates the company's level of debt relative to its equity. An increase in the ratio signifies that the company is relying more on debt financing, while a decrease indicates a lower reliance on debt.
In 2020, the ratio was 2.00, which increased to 2.33 by the end of 2021, indicating a higher level of debt financing relative to equity in that year. However, in the following years, the ratio decreased to 2.21 in 2022, 2.11 in 2023, and finally to 1.96 in 2024, suggesting a reduction in the company's debt relative to equity and a potential improvement in its financial stability.
Overall, Thermo Fisher Scientific Inc's financial leverage ratio has shown variability over the period, and investors and analysts may want to further investigate the underlying reasons behind these fluctuations to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2024