Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Abiomed Inc., ROIC calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 140,811) | 259,982) | 239,725) | 253,605) | 159,878) | 79,888) | |
| Invested capital2 | 693,367) | 737,876) | 594,867) | 497,537) | 273,719) | 226,723) | |
| Performance Ratio | |||||||
| ROIC3 | 20.31% | 35.23% | 40.30% | 50.97% | 58.41% | 35.24% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Abbott Laboratories | 10.96% | 11.30% | 8.01% | 6.47% | — | — | |
| Cigna Group | 8.53% | 6.88% | 9.84% | 6.50% | — | — | |
| CVS Health Corp. | 3.13% | 7.01% | 6.63% | 5.97% | — | — | |
| Elevance Health Inc. | 10.17% | 11.14% | 8.67% | 9.75% | — | — | |
| Humana Inc. | 10.50% | 10.35% | 17.73% | 16.04% | — | — | |
| Intuitive Surgical Inc. | 22.01% | 37.63% | 25.62% | 42.29% | — | — | |
| Medtronic PLC | 7.02% | 5.59% | 6.20% | 7.51% | 3.82% | — | |
| Shockwave Medical Inc. | 38.37% | -4.08% | -70.24% | -31.36% | — | — | |
| UnitedHealth Group Inc. | 13.68% | 13.51% | 13.84% | 13.91% | — | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 140,811 ÷ 693,367 = 20.31%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Abiomed Inc. ROIC deteriorated from 2020 to 2021 and from 2021 to 2022. |
Decomposition of ROIC
Abiomed Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2022 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Abiomed Inc., OPM calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 140,811) | 259,982) | 239,725) | 253,605) | 159,878) | 79,888) | |
| Add: Cash operating taxes2 | 51,674) | 33,340) | 20,943) | 12,089) | 5,738) | 13,626) | |
| Net operating profit before taxes (NOPBT) | 192,485) | 293,322) | 260,668) | 265,694) | 165,616) | 93,514) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Add: Increase (decrease) in deferred revenue | 2,040) | 5,175) | 2,754) | 1,423) | 4,475) | 1,717) | |
| Adjusted revenue | 1,033,793) | 852,697) | 843,637) | 770,855) | 598,224) | 447,021) | |
| Profitability Ratio | |||||||
| OPM3 | 18.62% | 34.40% | 30.90% | 34.47% | 27.68% | 20.92% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Abbott Laboratories | 20.24% | 20.37% | 16.05% | 14.97% | — | — | |
| Cigna Group | 5.39% | 4.69% | 7.72% | 5.38% | — | — | |
| CVS Health Corp. | 2.45% | 4.32% | 4.79% | 4.69% | — | — | |
| Elevance Health Inc. | 5.61% | 6.54% | 6.03% | 6.47% | — | — | |
| Humana Inc. | 4.33% | 4.49% | 6.64% | 5.73% | — | — | |
| Intuitive Surgical Inc. | 26.19% | 33.56% | 28.14% | 34.15% | — | — | |
| Medtronic PLC | 19.15% | 16.48% | 17.88% | 22.11% | 22.57% | — | |
| Shockwave Medical Inc. | 25.51% | -2.64% | -93.91% | -115.00% | — | — | |
| UnitedHealth Group Inc. | 9.13% | 8.33% | 9.15% | 8.41% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 192,485 ÷ 1,033,793 = 18.62%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Abiomed Inc. OPM improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Turnover of Capital (TO)
Abiomed Inc., TO calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Add: Increase (decrease) in deferred revenue | 2,040) | 5,175) | 2,754) | 1,423) | 4,475) | 1,717) | |
| Adjusted revenue | 1,033,793) | 852,697) | 843,637) | 770,855) | 598,224) | 447,021) | |
| Invested capital1 | 693,367) | 737,876) | 594,867) | 497,537) | 273,719) | 226,723) | |
| Efficiency Ratio | |||||||
| TO2 | 1.49 | 1.16 | 1.42 | 1.55 | 2.19 | 1.97 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Abbott Laboratories | 0.71 | 0.69 | 0.57 | 0.55 | — | — | |
| Cigna Group | 2.09 | 1.90 | 1.70 | 1.62 | — | — | |
| CVS Health Corp. | 2.60 | 2.22 | 1.96 | 1.83 | — | — | |
| Elevance Health Inc. | 2.33 | 2.14 | 2.13 | 1.86 | — | — | |
| Humana Inc. | 3.18 | 2.70 | 3.48 | 3.41 | — | — | |
| Intuitive Surgical Inc. | 1.16 | 1.27 | 0.98 | 1.35 | — | — | |
| Medtronic PLC | 0.46 | 0.42 | 0.41 | 0.42 | 0.42 | — | |
| Shockwave Medical Inc. | 1.54 | 1.36 | 0.74 | 0.27 | — | — | |
| UnitedHealth Group Inc. | 1.95 | 2.04 | 1.96 | 2.05 | — | — | |
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).
1 Invested capital. See details »
2 2022 Calculation
TO = Adjusted revenue ÷ Invested capital
= 1,033,793 ÷ 693,367 = 1.49
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Abiomed Inc. TO deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Effective Cash Tax Rate (CTR)
Abiomed Inc., CTR calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 140,811) | 259,982) | 239,725) | 253,605) | 159,878) | 79,888) | |
| Add: Cash operating taxes2 | 51,674) | 33,340) | 20,943) | 12,089) | 5,738) | 13,626) | |
| Net operating profit before taxes (NOPBT) | 192,485) | 293,322) | 260,668) | 265,694) | 165,616) | 93,514) | |
| Tax Rate | |||||||
| CTR3 | 26.85% | 11.37% | 8.03% | 4.55% | 3.46% | 14.57% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Abbott Laboratories | 23.97% | 20.05% | 12.92% | 21.15% | — | — | |
| Cigna Group | 24.44% | 23.01% | 24.93% | 25.68% | — | — | |
| CVS Health Corp. | 50.90% | 27.09% | 29.36% | 30.33% | — | — | |
| Elevance Health Inc. | 22.11% | 20.37% | 32.42% | 18.95% | — | — | |
| Humana Inc. | 23.74% | 14.62% | 23.28% | 17.80% | — | — | |
| Intuitive Surgical Inc. | 27.40% | 11.76% | 6.67% | 8.23% | — | — | |
| Medtronic PLC | 19.53% | 18.59% | 14.72% | 19.30% | 59.94% | — | |
| Shockwave Medical Inc. | 2.32% | — | — | — | — | — | |
| UnitedHealth Group Inc. | 23.25% | 20.32% | 22.88% | 19.29% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 51,674 ÷ 192,485 = 26.85%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Abiomed Inc. CTR increased from 2020 to 2021 and from 2021 to 2022. |