Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Abiomed Inc., consolidated statement of comprehensive income
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
The financial performance between 2017 and 2022 is characterized by a period of rapid growth in net income followed by a contraction and increased volatility in comprehensive income components. The most significant expansion occurred between 2017 and 2019, after which profitability experienced a downward trajectory, culminating in a substantial decrease in the final reported year.
- Net Income Trends
- A strong upward trend was observed from 2017 to 2019, with net income rising from 52,116 thousand US$ to a peak of 259,016 thousand US$. Following this peak, net income fluctuated, declining in 2020, recovering slightly in 2021, and then decreasing significantly to 136,505 thousand US$ by March 31, 2022.
- Other Comprehensive Income (OCI) Volatility
- Other comprehensive income exhibited high volatility and lacked a consistent directional trend. The most positive impact occurred in 2018 with a gain of 16,402 thousand US$, whereas the most significant negative impact was recorded in 2022 with a loss of 15,715 thousand US$. This volatility is primarily driven by foreign currency translation and unrealized gains or losses on securities.
- Foreign Currency and Derivative Impacts
- Foreign currency translation results shifted inconsistently between gains and losses throughout the period, indicating sensitivity to exchange rate fluctuations. Derivative instruments, for which data is available starting in 2020, transitioned from a gain of 3,999 thousand US$ in 2020 to consistent losses in 2021 and 2022.
- Marketable Securities Performance
- Unrealized gains and losses on marketable securities remained relatively muted until 2022, when a sharp decline to a loss of 8,092 thousand US$ was recorded. This represents the largest single-year loss for this item within the analyzed timeframe.
- Comprehensive Income Analysis
- Comprehensive income closely mirrored the trajectory of net income, peaking in 2019 at 248,531 thousand US$. While net income remained the primary driver of comprehensive income, the negative OCI in 2022 exacerbated the decline in total comprehensive income, which fell to 120,790 thousand US$.
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