Thermo Fisher Scientific Inc (TMO)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	97,321,000	100,364,000	98,496,000	97,095,000	98,726,000	97,057,000	94,105,000	94,658,000	97,154,000	90,536,000	90,579,000	92,747,000	95,123,000	73,600,000	67,698,000	65,931,000	69,052,000	64,061,000	61,593,000	58,688,000
Total stockholders’ equity	US$ in thousands	49,551,000	48,992,000	47,432,000	45,516,000	46,724,000	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
Financial leverage ratio		1.96	2.05	2.08	2.13	2.11	2.14	2.15	2.24	2.21	2.08	2.14	2.26	2.33	1.90	1.84	1.88	2.00	2.01	2.06	2.05

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 some fluctuation over the period under consideration. The ratio ranged from a low of 1.84 on June 30, 2021, to a peak of 2.33 on December 31, 2021. Generally, a higher financial leverage ratio indicates a higher level of debt relative to equity, which implies higher financial risk.

The company's financial leverage ratio decreased to 1.88 on March 31, 2021, indicating a reduction in debt relative to equity. However, this trend reversed in subsequent periods, with the ratio increasing to 2.24 on March 31, 2023. The ratio remained relatively stable around the 2.00 mark for most of the period, reflecting a balanced mix of debt and equity in the company's capital structure.

Overall, the financial leverage ratio of Thermo Fisher Scientific Inc suggests that the company has been managing its debt levels effectively, with fluctuations reflecting potential strategic decisions regarding financing and capital structure. It would be important for investors and analysts to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and risk profile.