Abiomed Inc. (NASDAQ:ABMD)

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit a downward trend from 2017 through 2021. The reported ratio decreases from 0.81 in 2017 to a low of 0.57 in 2021, before showing a slight recovery to 0.62 in 2022. The adjusted ratio follows a similar trajectory, declining from 0.85 in 2017 to 0.57 in 2021, and increasing to 0.62 in 2022. This indicates a gradual decline in asset utilization efficiency over the period, with some improvement occurring in the latest year.

Current Ratio

The company's liquidity position, as reflected by the current ratio, demonstrates a generally increasing trend. Reported current ratio values rise from 4.7 in 2017 to 7.05 in 2022, with minor fluctuations, including a dip in 2020. The adjusted current ratio shows a more pronounced upward movement, increasing from 5.6 in 2017 to 8.87 in 2022. These figures suggest strengthening short-term liquidity and an improving ability to cover current liabilities.

Debt to Equity and Debt to Capital Ratios

The adjusted debt to equity ratio declines over time, starting at 0.06 in 2017 and reducing to near zero (0.00) by 2021, with a slight increase back to 0.01 in 2022. Similarly, the adjusted debt to capital ratio decreases from 0.05 in 2017 to 0.00 in 2021, slightly rising to 0.01 in 2022. These trends indicate a consistent reduction in financial leverage and reliance on debt financing, resulting in a very low debt burden by the end of the period.

Financial Leverage

Both reported and adjusted financial leverage ratios show a modest decreasing trend over the period, moving from approximately 1.22 in 2017 to near 1.1 in 2022. The steady, slight decline suggests a gradual reduction in the extent to which assets are financed by equity and debt combined, aligning with the observed decrease in debt ratios.

Net Profit Margin

The net profit margin displays significant variability. The reported margin increases markedly from 11.7% in 2017 to a peak of 33.66% in 2019 but then declines to 13.23% by 2022. The adjusted margin follows a similar pattern, rising from 16.43% in 2017 to a high of 31.54% in 2019, then dropping to 12.09% in 2022. These fluctuations may indicate cyclical influences on profitability or exceptional items impacting earnings during these years.

Return on Equity (ROE)

ROE shows an increasing trend from 2017 to 2019, with reported figures rising from 11.53% to 27.65%. After 2019, ROE is in decline, falling to 9.08% by 2022. Adjusted ROE values mirror this pattern, increasing sharply to 27.68% in 2018 and 2019, before decreasing to 8.21% in 2022. This reflects a period of strong profitability followed by a reduction in equity returns in more recent years.

Return on Assets (ROA)

ROA trends align closely with ROE and net margin movements. Reported ROA increases from 9.47% in 2017 to 24.57% in 2019, after which it decreases steadily to 8.16% in 2022. The adjusted ROA similarly rises initially and then falls, reaching 7.51% in the latest period. These patterns suggest that asset profitability peaked around 2019 and experienced diminished returns thereafter.

Overall Insights

The data reflects a decline in operational efficiency related to asset usage as indicated by falling total asset turnover ratios until a modest recovery in 2022. Liquidity steadily strengthens, evidenced by increasing current ratios. Financial leverage and indebtedness have decreased, leading to a more conservative capital structure. Profitability metrics such as net profit margin, ROE, and ROA exhibit a significant rise up to 2019, followed by a marked reduction through 2022. This could suggest challenges impacting profitability in recent years despite improved liquidity and lower financial risk.

Revenue Trends

Revenue showed a consistent upward trajectory over the six-year period. Starting at approximately $445 million in 2017, it increased steadily each year, reaching over $1 billion by 2022. The growth rate appeared to slow somewhat between 2020 and 2021 but rebounded strongly in 2022.

Total Assets Trends

Total assets grew significantly during the analyzed period, more than tripling from around $550 million in 2017 to over $1.67 billion by 2022. The increase year-over-year was steady and relatively robust, indicating ongoing investments and asset acquisitions.

Reported Total Asset Turnover

This ratio exhibited a declining trend from 0.81 in 2017 to a low of 0.57 in 2021, followed by a slight recovery to 0.62 in 2022. The decreasing asset turnover suggests that asset growth outpaced revenue growth, implying reduced efficiency in utilizing assets to generate revenue, especially in 2021. However, the slight improvement in 2022 indicates a modest recovery in asset utilization efficiency.

Adjusted Revenue and Assets

Adjusted revenue closely mirrored reported revenue trends, with a steady increase from about $447 million in 2017 to approximately $1.03 billion in 2022. Adjusted total assets also showed a strong increase from about $523 million to $1.66 billion across the same timeframe.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio followed a pattern similar to the reported ratio, declining from 0.85 in 2017 to 0.57 in 2021 and recovering slightly to 0.62 in 2022. This parallel trend confirms a consistent decline in efficiency of asset use in revenue generation when adjusted for accounting considerations, followed by a partial rebound in the final year.

Overall Insights

The data reflect strong growth in both revenue and total assets over the period, with assets growing at a faster pace relative to revenue, resulting in a decline in asset turnover ratios. The decline in turnover ratio suggests a potential challenge in maintaining asset efficiency. The modest recovery in 2022 could indicate efforts or changes improving asset utilization. Continuous monitoring of asset turnover will be important to assess future efficiency improvements relative to asset base expansion.

The analysis of the current assets and current liabilities over the six-year period reveals several notable trends regarding liquidity and financial health.

Current Assets

There is a steady upward trend in current assets from 2017 to 2022. The value increased from approximately 327 million US dollars in 2017 to nearly 976 million US dollars in 2022, indicating substantial growth in the company's short-term assets available to cover liabilities.

Current Liabilities

Current liabilities also increased over the period but at a much slower rate compared to current assets. Starting from about 70 million US dollars in 2017, the liabilities rose to approximately 138 million US dollars by 2022. This suggests improved management of obligations or a controlled growth in short-term liabilities.

Reported Current Ratio

The reported current ratio shows consistent improvement, increasing from 4.7 in 2017 to 7.05 in 2022, which indicates an increasingly favorable liquidity position. However, there was a slight dip in 2020 to 4.82, possibly reflecting short-term pressures or unusual transactions during that year, followed by recovery.

Adjusted Current Assets and Liabilities

The adjusted figures for current assets and liabilities follow a pattern similar to the reported values, with assets increasing from approximately 327 million to 977 million and liabilities from about 58 million to 110 million between 2017 and 2022. This adjustment may account for reclassifications or corrections providing a refined view of liquidity.

Adjusted Current Ratio

The adjusted current ratio consistently exceeds the reported ratio, indicating a stronger liquidity position after adjustments. Starting at 5.6 in 2017, it peaks at 8.87 in 2022, showing a marked and sustained improvement. The ratio dipped in 2020 to 5.74, mirroring the reported ratio trend, but recovered strongly in subsequent years.

Overall, the data suggests a solid and improving liquidity stance over the period under review. The company's ability to meet short-term obligations has strengthened significantly, as indicated by both reported and adjusted current ratios. The fluctuations observed around 2020 may warrant further investigation to understand external or operational factors affecting that period.

The financial data reveals noteworthy trends in the company’s capital structure over the analyzed periods ending March 31 from 2017 through 2022.

Total Debt

The reported total debt value of $16.3 million is only available for the year ending March 31, 2017, with no subsequent data. This limits direct comparison of reported debt over time.

Stockholders’ Equity

Stockholders’ equity has demonstrated a consistent and strong upward trend across the six-year period. Beginning at approximately $452 million in 2017, equity nearly doubled by 2022, reaching over $1.5 billion. This indicates sustained accumulation of retained earnings and/or capital infusion, reflecting improving net asset strength.

Reported Debt to Equity Ratio

Available only for 2017, the reported debt to equity ratio is low at 0.04, implying a conservative use of debt relative to equity during that year.

Adjusted Total Debt

Adjusted total debt figures are available for all years, showing a significant decline from about $23.8 million in 2017 to a low of $6.1 million in 2021, before a slight increase to $9.5 million in 2022. This overall downward movement signals deliberate efforts to reduce leverage or improved debt management practices.

Adjusted Stockholders’ Equity

This metric parallels the growth pattern of reported stockholders’ equity, rising from approximately $430 million in 2017 to $1.52 billion by 2022. The steady increase reinforces the company’s strengthening financial base on an adjusted basis as well.

Adjusted Debt to Equity Ratio

The ratio comprehensively illustrates a declining leverage profile, dropping from 0.06 in 2017 to effectively zero in 2021, then slightly rising to 0.01 in 2022. The low and decreasing adjusted leverage ratios underscore a conservative capital structure with minimal reliance on debt financing relative to equity.

In summary, the company has exhibited robust growth in equity alongside a marked reduction in debt levels, resulting in an increasingly conservative financial leverage posture. These trends suggest a focus on strengthening balance sheet resilience and lowering financial risk over the analyzed period.

The financial data reveals several notable trends in the company's capital structure and debt management over the period from 2017 to 2022.

Total Capital

Total capital has demonstrated consistent growth, increasing from approximately $468 million in 2017 to over $1.5 billion in 2022. This steady upward trend indicates a significant expansion of the company’s financial base and capacity over the six-year period.

Adjusted Total Capital

Adjusted total capital follows a similar increasing trajectory, beginning at around $453 million in 2017 and reaching approximately $1.53 billion in 2022. The close alignment with total capital values suggests reliability in the adjustment methods applied and reinforces the trend of capital growth.

Total Debt and Adjusted Total Debt

Total debt data is only available for 2017, showing a value of roughly $16.3 million, with no reported values for subsequent years. In contrast, adjusted total debt is available for the entire period and shows a fluctuating yet generally declining trend, starting at about $23.8 million in 2017, decreasing to a low of $6.1 million in 2021, and slightly increasing again to approximately $9.5 million in 2022. This suggests an overall reduction in debt levels after 2017, with some minor fluctuations.

Debt to Capital Ratios

The reported debt to capital ratio for 2017 stands at 0.03, indicating a very low level of debt relative to capital. Adjusted debt to capital ratios show a decreasing trend from 0.05 in 2017 to near-zero levels in 2021, followed by a minimal uptick to 0.01 in 2022. This declining ratio over time highlights an improved capital structure with reduced reliance on debt financing.

Overall, the data illustrates a strengthening financial position characterized by substantial capital growth paired with effective debt management leading to low leverage ratios. The company appears to maintain a conservative approach toward debt, ensuring capital expansion is not accompanied by disproportionate increases in debt levels.

Total Assets

Total assets exhibit a consistent upward trend over the six-year period, starting from approximately $550 million in 2017 and increasing steadily to over $1.67 billion by 2022. This reflects sustained growth in the company's asset base, with an accelerated increase observed particularly between 2020 and 2022.

Stockholders’ Equity

Stockholders’ equity also shows continuous growth from around $452 million in 2017 to approximately $1.5 billion in 2022. The growth rate in equity aligns closely with that of total assets, indicating the company's expanding net asset value and likely retained earnings or capital injections over the period.

Reported Financial Leverage

The reported financial leverage ratio decreases gradually from 1.22 in 2017 to 1.11 in 2022. This downward trend signifies a slight reduction in the use of debt relative to equity, suggesting a strengthening equity position or more conservative liability management over time.

Adjusted Total Assets

Adjusted total assets mirror the pattern of reported total assets, rising steadily from approximately $523 million in 2017 to over $1.66 billion in 2022. The adjusted figures consistently remain slightly lower than the reported total assets, but both series follow a comparable growth trajectory, indicating adjustments do not materially alter the trend of asset expansion.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increases from about $430 million in 2017 to roughly $1.52 billion in 2022. The adjusted equity values track closely with reported equity, maintaining the pattern of solid equity growth with a gradual improvement in capital strength.

Adjusted Financial Leverage

Adjusted financial leverage similarly declines from 1.22 in 2017 to 1.09 in 2022, consistent with the reported leverage ratio. This suggests a conservative capital structure trend when considering adjustments, reinforcing the observation of decreasing reliance on debt over time.

Revenue Trends

The revenue demonstrates a consistent upward trajectory throughout the observed periods, increasing from approximately $445 million in 2017 to over $1 billion by 2022. This steady growth reflects expanding business operations or increased market demand over the six years.

Net Income Trends

Reported net income steadily increased from 2017 through 2019, peaking at around $259 million in 2019, followed by a decline in 2020 and 2022, with a slight recovery in 2021. This pattern indicates some volatility in profitability despite rising revenue, especially notable after 2019.

Profit Margin Analysis

The reported net profit margin improved significantly from 11.7% in 2017 to a peak of 33.66% in 2019, then declined sharply to 13.23% by 2022. This suggests that while profitability margins were optimized by 2019, operational or cost factors may have adversely impacted margins in subsequent years.

Adjusted Net Income and Margin

Adjusted net income follows a similar trend, increasing consistently until 2019, with minor fluctuations thereafter. The adjusted net profit margin also peaked near 31.5% in 2019 and declined to about 12% by 2022. This indicates that adjustments for certain items do not significantly alter the overall profitability trend, illustrating a genuine decrease in net profitability starting from 2020.

Overall Insights

The company experienced robust revenue growth over the six-year period; however, net profitability exhibited volatility, with a peak around 2019 followed by a downward trend. Both reported and adjusted metrics corroborate this pattern. The decline in profit margins in 2020 and beyond may point to increased costs or other operational challenges impacting profitability despite rising revenues.

The financial data indicates several notable trends in profitability and equity for the analyzed periods.

Net Income

Net income exhibited significant growth from 2017 through 2019, rising from 52,116 thousand USD to a peak of 259,016 thousand USD. However, this was followed by a decrease in 2020 to 203,009 thousand USD, a slight recovery in 2021 to 225,525 thousand USD, and then a notable decline to 136,505 thousand USD in 2022. This pattern suggests a period of strong profitability growth followed by volatility and a downward trend in the most recent year.

Stockholders’ Equity

Stockholders’ equity consistently increased year-over-year, starting at 452,071 thousand USD in 2017 and reaching 1,503,326 thousand USD in 2022. This steady growth reflects ongoing capital accumulation or retained earnings, indicating a strengthening financial base over time.

Reported Return on Equity (ROE)

Reported ROE followed an upward trend from 11.53% in 2017 to a maximum of 27.65% in 2019. It then declined to 19.05% in 2020, further dropping to 16.96% in 2021 and reaching a low of 9.08% in 2022. This decline in ROE contrasts with the rising equity base, suggesting that recent profitability gains have not kept pace with equity growth, thereby reducing efficiency in generating returns for shareholders.

Adjusted Net Income

Adjusted net income showed growth from 73,447 thousand USD in 2017 to a peak of 259,631 thousand USD in 2021. Contrary to net income, adjusted net income remained relatively stable from 2019 to 2020 and only slightly increased in 2021 before sharply declining to 124,975 thousand USD in 2022. This trend indicates that adjustments to net income smooth some volatility but still reflect a recent profitability downturn.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity mirrored the trend seen in reported equity with consistent growth from 429,625 thousand USD in 2017 to 1,522,476 thousand USD in 2022. This suggests that adjustments did not significantly alter the trajectory of equity accumulation.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE showed a strong rise from 17.1% in 2017 to a high of 27.68% in 2018 and maintained a relatively high level through 2019 (27.66%) and 2020 (23.24%). However, it declined in 2021 to 19.28% and sharply decreased in 2022 to 8.21%. This pattern aligns with reported ROE, confirming a recent reduction in profitability efficiency when adjusted for non-recurring items.

Overall, the data reveals a growth phase from 2017 to 2019 characterized by rising income and strong ROE, followed by a period of declining profitability metrics and returns starting in 2020 and becoming more pronounced by 2022. Despite increasing equity levels, the company’s ability to generate returns on that equity has weakened significantly in the latest period under review.

The financial data reveals several notable trends in the company’s performance and asset management over the analyzed periods.

Net Income

The net income exhibited a general upward trend from 2017 to 2021, increasing substantially from 52,116 thousand US dollars to a peak of 225,525 thousand US dollars in 2021. However, a significant decline occurred in 2022, with net income falling to 136,505 thousand US dollars, representing a notable contraction compared to the previous year.

Total Assets

Total assets consistently increased throughout the period, growing from 550,414 thousand US dollars in 2017 to 1,673,393 thousand US dollars in 2022. This steady asset growth illustrates continued investment and expansion in the company's asset base.

Reported Return on Assets (ROA)

Reported ROA increased from 9.47% in 2017 to a peak of 24.57% in 2019, indicating improved profitability relative to asset size during this timeframe. Subsequently, ROA declined to 8.16% by 2022, reflecting a reduction in asset efficiency or profitability despite growing total assets.

Adjusted Net Income

Adjusted net income showed a robust increase from 73,447 thousand US dollars in 2017 to a high of 259,631 thousand US dollars in 2021. Similar to reported net income, adjusted net income dropped markedly to 124,975 thousand US dollars in 2022, indicating the impact of adjustments did not mitigate the decline in profitability witnessed in the final year.

Adjusted Total Assets

Adjusted total assets increased steadily from 523,435 thousand US dollars in 2017 to 1,663,465 thousand US dollars in 2022, mirroring the trend seen in reported total assets. This continuous asset growth suggests consistent enhancement of the underlying asset base when considering adjusted measures.

Adjusted Return on Assets (Adjusted ROA)

Adjusted ROA rose sharply from 14.03% in 2017 to a peak of 24.5% in 2019, reflecting strong adjusted profitability relative to assets. From 2019, there was a gradual decline in adjusted ROA, which steepened in the final reported year to 7.51% in 2022. This declining trend signifies reduced returns on the asset base when adjustments are accounted for.

In summary, the company experienced strong growth and improving profitability ratios up to 2019, followed by a period of declining returns on assets and reduced net income in 2022 despite continuing asset growth. The weakening profitability metrics in recent years may warrant further investigation into operational challenges or market conditions affecting earnings generation relative to the expanding asset base.