Abiomed Inc. (NASDAQ:ABMD)

Goodwill

The goodwill balance showed moderate fluctuations between 2017 and 2020, moving from 31,045 thousand USD in 2017 to 31,969 thousand USD in 2020. A significant increase is observed in 2021 to 78,568 thousand USD, followed by a slight decrease to 76,786 thousand USD in 2022. This indicates a substantial acquisition or reassessment event around 2021.

Developed technology and Finite-lived intangible assets, cost

These assets appear reported starting in 2021 with a cost of 27,000 thousand USD, which remained constant through 2022. This suggests a recognition or acquisition of developed technology assets beginning in 2021, maintained at a stable valuation in the following year.

Accumulated amortization

Accumulated amortization related to finite-lived intangible assets was first recognized in 2021 at -750 thousand USD, increasing significantly to -2,550 thousand USD in 2022. This escalation reflects ongoing amortization expenses consistent with the finite life of related intangible assets.

Finite-lived intangible assets, net carrying value

The net carrying value of finite-lived intangible assets was introduced in 2021 at 26,250 thousand USD and declined to 24,450 thousand USD in 2022. This reduction aligns with the increasing accumulated amortization and suggests systematic asset amortization.

In-process research and development and Indefinite-lived intangible assets

The balance for these intangible assets remained relatively stable from 2017 through 2022, fluctuating marginally around 15,000 to 17,000 thousand USD over the years, then decreasing slightly to 15,068 thousand USD in 2022. This stability indicates consistent investment or valuation in ongoing research and development projects categorized as indefinite-lived assets.

Other intangible assets, net

There was a constant level of other intangible assets from 2017 to 2020, about 14,482 to 14,913 thousand USD. A marked increase took place in 2021 to 42,150 thousand USD, followed by a decrease to 39,518 thousand USD in 2022. The 2021 jump likely stems from the addition of finite-lived intangible assets and reflects a broadened intangible asset base.

Goodwill and other intangible assets, net

The combined net assets increased steadily from 45,527 thousand USD in 2017 to 52,513 thousand USD in 2018, then declined slightly to 46,882 thousand USD by 2020. A substantial increase occurred in 2021, peaking at 120,718 thousand USD, with a minor decrease to 116,304 thousand USD in 2022. This trend corroborates significant acquisitions or asset revaluations around 2021, enhancing the company's intangible asset base substantially.

The financial data reveals several notable trends over the six-year period under review, focusing on both reported and goodwill adjusted values.

Total Assets

The reported total assets show a consistent upward trajectory, increasing from approximately $550 million in 2017 to about $1.67 billion in 2022. This represents a growth of over 200% in total assets during the period. The adjusted total assets, which exclude goodwill, follow a similar trend but at slightly lower levels. They rose from roughly $519 million in 2017 to nearly $1.60 billion in 2022. The growing gap between reported and adjusted total assets suggests an increasing portion of goodwill or intangible assets over time.

Stockholders’ Equity

Reported stockholders’ equity also exhibits substantial growth, rising from approximately $452 million in 2017 to over $1.5 billion by 2022. This indicates strong capital base expansion and retention of earnings. Adjusted stockholders’ equity, which removes goodwill effects, similarly increases from about $421 million in 2017 to nearly $1.43 billion in 2022. The differential between reported and adjusted equity widens moderately, mirroring the trend seen in total assets and indicating the growing impact of intangible assets on the equity base.

Overall Insights

The consistent year-over-year increase in both assets and equity points to robust growth and possibly successful reinvestment strategies. The parallel movement of reported and adjusted figures confirms that while goodwill and intangible assets have increased, the underlying tangible asset base and equity have also strengthened considerably. This pattern may suggest acquisitions or investments resulting in increased goodwill, coupled with organic growth driving overall asset and equity expansion.

The analysis of the financial data over the six-year period reveals several key trends related to asset efficiency, financial leverage, and profitability metrics.

Total Asset Turnover

The reported total asset turnover exhibited a decreasing trend from 0.81 in 2017 to 0.57 in 2021, followed by a slight recovery to 0.62 in 2022. The adjusted total asset turnover, which accounts for goodwill adjustments, follows a similar pattern, declining from 0.86 in 2017 to 0.60 in 2021, with a modest increase to 0.65 in 2022. This indicates a gradual reduction in how efficiently the company is utilizing its total assets to generate revenue, with some improvement in the most recent year.

Financial Leverage

Both reported and adjusted financial leverage ratios demonstrate a relatively stable pattern, with a slight downward trend over the period. The reported financial leverage decreased marginally from 1.22 in 2017 to 1.11 in 2022, while the adjusted figures show a similar decline from 1.23 to 1.12. This suggests a modest reduction in the company's reliance on debt financing relative to equity over time.

Return on Equity (ROE)

ROE displayed notable volatility through the years. The reported ROE initially increased significantly, reaching a peak of 27.65% in 2019, before declining to 9.08% in 2022. The adjusted ROE adjusted for goodwill follows the same trend but at slightly higher levels, peaking at 28.64% in 2019 and falling to 9.57% in 2022. This pattern indicates that while the company achieved strong profitability relative to equity in 2019, profitability substantially weakened in subsequent years.

Return on Assets (ROA)

The reported ROA trends similarly to ROE, climbing from 9.47% in 2017 to 24.57% in 2019, then declining to 8.16% by 2022. Adjusted ROA figures are consistently higher than reported ROA, showing a peak at 25.35% in 2019 and a decline to 8.55% in 2022. This reflects a substantial decline in the company's profitability relative to its asset base after 2019.

Overall, the data suggest that the company experienced improvements in asset efficiency and profitability up to 2019, but both metrics have deteriorated in the subsequent years. Financial leverage remained relatively steady, indicating consistent capital structure management. The adjustments for goodwill slightly enhance the profitability ratios but do not significantly change the observed trends.

Total Assets

The reported total assets show a consistent upward trend from 550,414 thousand US dollars in 2017 to 1,673,393 thousand US dollars in 2022. The adjusted total assets, which exclude goodwill, follow a similar pattern, rising from 519,369 thousand US dollars in 2017 to 1,596,607 thousand US dollars in 2022. This indicates overall growth in asset base over the six-year period, with the gap between reported and adjusted assets suggesting the presence of a substantial goodwill component that has remained relatively stable in proportion.

Total Asset Turnover

The reported total asset turnover ratio declined steadily from 0.81 in 2017 to a low of 0.57 in 2021 before rebounding slightly to 0.62 in 2022. Similarly, the adjusted total asset turnover ratio showed a downward trend from 0.86 in 2017 to 0.60 in 2021, then a modest improvement to 0.65 in 2022. This trend reflects a decreasing efficiency in generating revenue from the asset base over most of the period, with some recovery in the most recent year.

Insights on Asset and Efficiency Trends

The steady increase in the asset base alongside declining asset turnover ratios suggests that asset growth outpaced revenue growth during the period. The improvement in asset turnover ratios in the final year may indicate either a stabilization in revenue growth relative to assets or improved asset utilization. The consistent difference between reported and adjusted figures implies that goodwill remains a significant but steady component of total assets.

Total Assets

There is a consistent upward trend in both reported and adjusted total assets from 2017 through 2022. Reported total assets increased from approximately 550 million to over 1.67 billion US dollars, reflecting significant asset growth. Adjusted total assets, which exclude goodwill, followed a similar trajectory, increasing from about 519 million to nearly 1.6 billion US dollars. This pattern suggests steady expansion and accumulation of tangible or other non-goodwill assets over the observed period.

Stockholders' Equity

Reported stockholders' equity also demonstrated steady growth, rising from roughly 452 million in 2017 to over 1.5 billion US dollars by 2022. Adjusted stockholders' equity values, excluding goodwill, increased in parallel, from approximately 421 million to about 1.43 billion US dollars. This indicates that the company's net worth, both including and excluding goodwill, expanded consistently over the six-year period.

Financial Leverage

Reported financial leverage ratios slightly declined over time, moving from 1.22 in 2017 to 1.11 in 2022. Adjusted financial leverage showed a similar small downward trend, decreasing from 1.23 to 1.12 during the same timeframe. These reductions indicate a modest decrease in the degree to which the company relied on debt relative to equity, suggesting a gradual improvement in the financial structure and potentially reduced financial risk.

Overall Insights

The data reveal a pattern of consistent growth in asset base and equity, accompanied by a gradual reduction in financial leverage. The close alignment between reported and adjusted figures implies that goodwill adjustments have a limited impact on the overall financial position, maintaining proportional relationships. The firm appears to be strengthening its financial foundation over the period analyzed.

Stockholders’ Equity Trends

The reported stockholders’ equity exhibited a consistent upward trend over the six-year period, increasing from approximately 452 million USD in 2017 to about 1.5 billion USD by 2022. This represents a more than threefold increase. The adjusted stockholders’ equity followed a similar pattern, starting slightly lower at around 421 million USD in 2017 and rising steadily to approximately 1.43 billion USD by 2022. The adjustment appears to reduce equity values consistently across all years, but the overall growth trend remains strong and uninterrupted.

Return on Equity (ROE) Behavior

The reported return on equity demonstrated variability, increasing from 11.53% in 2017 to a peak of 27.65% in 2019. After reaching this peak, the reported ROE declined to 19.05% in 2020, further dropped to 16.96% in 2021, and then sharply decreased to 9.08% by 2022. Adjusted ROE values closely parallel the reported ROE, showing slightly higher percentages in some years. The adjusted ROE peaked similarly in 2019 at 28.64%, followed by a decline to 19.64% in 2020 and further reductions in 2021 and 2022 to 18.03% and 9.57% respectively.

Insights

The steady increase in both reported and adjusted stockholders’ equity indicates sustained growth in the company’s net asset base over the examined period. The divergence in ROE values, with a pronounced peak in 2019 followed by a consistent decline through 2022, suggests that while the company expanded its equity base, the efficiency in generating returns on that equity decreased substantially after 2019. The close alignment between reported and adjusted metrics implies that the adjustments, presumably related to goodwill, have a relatively modest impact on overall equity and profitability measurements.

Total Assets

The reported total assets exhibited a consistent upward trend over the period from March 31, 2017, to March 31, 2022. The value increased from $550,414 thousand in 2017 to $1,673,393 thousand in 2022, representing substantial growth. Similarly, the adjusted total assets, which presumably exclude goodwill or other intangible assets, showed a parallel increase from $519,369 thousand in 2017 to $1,596,607 thousand in 2022. Both reported and adjusted total assets reflected a strong asset base expansion, though the adjusted figures are slightly lower, indicating the presence of goodwill or similar adjustments affecting the reported figures.

Return on Assets (ROA)

Reported ROA experienced fluctuations throughout the six-year period. It increased significantly from 9.47% in 2017 to a peak of 24.57% in 2019, before declining steadily to 8.16% in 2022. This pattern suggests a period of strong profitability relative to asset base around 2019, followed by a gradual decrease in asset efficiency. The adjusted ROA followed a similar trajectory, rising from 10.03% in 2017 to a high of 25.35% in 2019, then declining to 8.55% in 2022. The slightly higher values in adjusted ROA compared to reported ROA imply that the adjustments (such as removal of goodwill) enhance the perceived profitability of the company's assets. Overall, the data reveals a peak performance in asset returns in 2019 with subsequent diminishing returns in later years despite continued growth in total asset values.