Return on Equity (ROE)
since 2005
Calculation
Abiomed Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 9.08% | = | 100 | × | 136,505) | ÷ | 1,503,326) |
| Mar 31, 2021 | 16.96% | = | 100 | × | 225,525) | ÷ | 1,329,675) |
| Mar 31, 2020 | 19.05% | = | 100 | × | 203,009) | ÷ | 1,065,466) |
| Mar 31, 2019 | 27.65% | = | 100 | × | 259,016) | ÷ | 936,890) |
| Mar 31, 2018 | 16.27% | = | 100 | × | 112,170) | ÷ | 689,524) |
| Mar 31, 2017 | 11.53% | = | 100 | × | 52,116) | ÷ | 452,071) |
| Mar 31, 2016 | 10.34% | = | 100 | × | 38,147) | ÷ | 368,775) |
| Mar 31, 2015 | 38.99% | = | 100 | × | 113,688) | ÷ | 291,560) |
| Mar 31, 2014 | 4.37% | = | 100 | × | 7,351) | ÷ | 168,353) |
| Mar 31, 2013 | 10.95% | = | 100 | × | 15,014) | ÷ | 137,080) |
| Mar 31, 2012 | 1.18% | = | 100 | × | 1,495) | ÷ | 126,297) |
| Mar 31, 2011 | -11.22% | = | 100 | × | (11,755) | ÷ | 104,743) |
| Mar 31, 2010 | -17.62% | = | 100 | × | (19,024) | ÷ | 107,956) |
| Mar 31, 2009 | -27.24% | = | 100 | × | (31,597) | ÷ | 115,983) |
| Mar 31, 2008 | -43.73% | = | 100 | × | (40,930) | ÷ | 93,594) |
| Mar 31, 2007 | -22.84% | = | 100 | × | (27,881) | ÷ | 122,095) |
| Mar 31, 2006 | -42.38% | = | 100 | × | (29,449) | ÷ | 69,488) |
| Mar 31, 2005 | -4.17% | = | 100 | × | (2,342) | ÷ | 56,179) |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$ in thousands
The financial trajectory from 2005 to 2022 is characterized by a transition from significant operational losses to sustained profitability, followed by a period of rapid growth and a subsequent normalization of returns on equity.
- Profitability and Net Income Trends
- A prolonged period of negative earnings is observed between 2005 and 2011, with losses peaking in 2006 and 2008. A pivotal shift occurred in 2012, marking the first year of positive net income. Profitability accelerated sharply between 2014 and 2019, with net income rising from 7.35 million USD to a peak of 259.02 million USD. From 2020 to 2022, net income exhibited volatility, ending the period at 136.51 million USD.
- Stockholders' Equity Expansion
- Equity growth remained modest during the loss-making years, fluctuating between 56.18 million USD and 126.30 million USD from 2005 to 2012. Starting in 2014, a sustained upward trend in the equity base is evident, reflecting significant capital accumulation. This growth accelerated after 2017, with stockholders' equity expanding from 452.07 million USD to 1.50 billion USD by 2022.
- Return on Equity (ROE) Dynamics
- ROE mirrored the net income trends, remaining negative from 2005 to 2011, with lows reaching -43.73% in 2008. Following the transition to profitability in 2012, ROE experienced a substantial surge, peaking at 38.99% in 2015. A second peak of 27.65% occurred in 2019. However, a downward trend in ROE is observed from 2020 to 2022, falling to 9.08%. This decline is attributable to the equity base increasing at a faster rate than net income growth during the final three years of the analyzed period.
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Comparison to Competitors
Abiomed Inc., ROE, long-term trends, comparison to competitors
| Abiomed Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2022 | 9.08% | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Mar 31, 2021 | 16.96% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Mar 31, 2020 | 19.05% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Mar 31, 2019 | 27.65% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Mar 31, 2018 | 16.27% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Mar 31, 2017 | 11.53% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Mar 31, 2016 | 10.34% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Mar 31, 2015 | 38.99% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Mar 31, 2014 | 4.37% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Mar 31, 2013 | 10.95% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Mar 31, 2012 | 1.18% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Mar 31, 2011 | -11.22% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Mar 31, 2010 | -17.62% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Mar 31, 2009 | -27.24% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Mar 31, 2008 | -43.73% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Mar 31, 2007 | -22.84% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Mar 31, 2006 | -42.38% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Mar 31, 2005 | -4.17% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Health Care Equipment & Services)
Abiomed Inc., ROE, long-term trends, comparison to sector (health care equipment & services)
| Abiomed Inc. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2022 | 9.08% | 18.40% |
| Mar 31, 2021 | 16.96% | 17.28% |
| Mar 31, 2020 | 19.05% | 15.80% |
| Mar 31, 2019 | 27.65% | 15.85% |
| Mar 31, 2018 | 16.27% | 13.28% |
| Mar 31, 2017 | 11.53% | 12.21% |
| Mar 31, 2016 | 10.34% | 10.70% |
| Mar 31, 2015 | 38.99% | 11.84% |
| Mar 31, 2014 | 4.37% | 13.81% |
| Mar 31, 2013 | 10.95% | 14.22% |
| Mar 31, 2012 | 1.18% | 17.99% |
| Mar 31, 2011 | -11.22% | 17.02% |
| Mar 31, 2010 | -17.62% | 17.62% |
| Mar 31, 2009 | -27.24% | 19.50% |
| Mar 31, 2008 | -43.73% | 17.63% |
| Mar 31, 2007 | -22.84% | 20.02% |
| Mar 31, 2006 | -42.38% | 16.70% |
| Mar 31, 2005 | -4.17% | 16.22% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Health Care)
Abiomed Inc., ROE, long-term trends, comparison to industry (health care)
| Abiomed Inc. | Health Care | |
|---|---|---|
| Mar 31, 2022 | 9.08% | 24.82% |
| Mar 31, 2021 | 16.96% | 25.44% |
| Mar 31, 2020 | 19.05% | 16.70% |
| Mar 31, 2019 | 27.65% | 23.30% |
| Mar 31, 2018 | 16.27% | 21.27% |
| Mar 31, 2017 | 11.53% | 13.77% |
| Mar 31, 2016 | 10.34% | 18.53% |
| Mar 31, 2015 | 38.99% | 18.52% |
| Mar 31, 2014 | 4.37% | 19.17% |
| Mar 31, 2013 | 10.95% | 18.81% |
| Mar 31, 2012 | 1.18% | 18.20% |
| Mar 31, 2011 | -11.22% | 15.90% |
| Mar 31, 2010 | -17.62% | 14.85% |
| Mar 31, 2009 | -27.24% | 20.14% |
| Mar 31, 2008 | -43.73% | 20.29% |
| Mar 31, 2007 | -22.84% | 17.87% |
| Mar 31, 2006 | -42.38% | 20.49% |
| Mar 31, 2005 | -4.17% | 18.28% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).