The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from 14.47% in 2019 to 13.99% in 2023.
The average EBIT Margin for the period under analysis was 20.62%, with 2019 and 2020performing the worst and best, respectively.
In the current year, THERMO FISHER was able to cover its interest liabilities 5.57 times – compared to 2019 when it was 7.02 times.
The Asset turnover stood at0.45 times in 2023 from 0.45in 2019,implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of THERMO FISHER has fluctuatedyear on year. The revenue increased by 26.14% between 2019 and 2020 and a further 14.55% increase was recorded between 2021 and 2022. There also occurred adecrease of –4.58% between 2022 and 2023 (the current period).
ThermoFisher’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as current ratio increased from 1.48:1 to 1.76:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Thermo Fisher is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 75% in the current year.
