Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Abiomed Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally exhibited a declining trend from mid-2017 through early 2021, decreasing from around 5.12 to a low near 4.3. This decline reflects reduced efficiency in generating revenue from net fixed assets during that period. However, from early 2021 onward, the ratio showed a noticeable recovery, climbing steadily to reach approximately 5.5 by late 2022, suggesting improved utilization or productivity of fixed assets in recent quarters.
- Total Asset Turnover
- The total asset turnover ratio showed relative stability with some fluctuations over the analyzed periods. Initially, between mid-2017 and early 2018, the ratio increased slightly from about 0.73 to near 0.79, indicating a modest improvement in the efficiency of total asset use. Following this period, the ratio trended downward, reaching lows around 0.57 in early 2021, suggesting declining efficiency. From then to late 2022, the ratio remained relatively flat, hovering near the 0.62–0.63 range, indicating a plateau in asset utilization efficiency.
- Equity Turnover
- Equity turnover demonstrated a pattern similar to total asset turnover. Starting at roughly 0.84 in mid-2017, the ratio increased slightly to approximately 0.89 by mid-2018, signaling increased revenue generated per unit of equity. Subsequently, the ratio declined steadily, bottoming out near 0.64 in early 2021. Thereafter, it experienced a mild recovery, stabilizing close to 0.69–0.7 through late 2022, indicating a moderate rebound in equity utilization efficiency.
Net Fixed Asset Turnover
Abiomed Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revenue | 265,921) | 277,149) | 269,850) | 261,176) | 248,142) | 252,585) | 241,245) | 231,663) | 209,764) | 164,850) | 206,659) | 221,584) | 204,974) | 207,666) | 207,081) | 200,563) | 181,778) | 180,010) | 174,436) | 154,022) | 132,823) | 132,468) | |||||||
| Property and equipment, net | 195,157) | 198,478) | 202,490) | 196,880) | 197,184) | 198,234) | 197,129) | 179,364) | 175,582) | 170,346) | 164,931) | 162,060) | 157,896) | 151,654) | 145,005) | 138,455) | 134,065) | 127,324) | 117,167) | 107,977) | 97,697) | 92,804) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.50 | 5.32 | 5.10 | 5.10 | 4.94 | 4.72 | 4.30 | 4.53 | 4.57 | 4.68 | 5.10 | 5.19 | 5.20 | 5.26 | 5.31 | 5.32 | 5.15 | 5.04 | 5.07 | 5.04 | 5.17 | 5.12 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 4.26 | 4.47 | 4.76 | 5.18 | 5.17 | 5.00 | 4.81 | 4.79 | 4.56 | 4.23 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 36.19 | 36.14 | 36.07 | 36.22 | 36.17 | 35.81 | 34.94 | 34.54 | 34.17 | 34.94 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 2.35 | 2.49 | 2.62 | 2.73 | 2.83 | 3.00 | 3.04 | 3.16 | 3.13 | 2.86 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 5.82 | 5.88 | 5.85 | 6.05 | 6.13 | 6.12 | 5.77 | 5.56 | 5.64 | 5.72 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 31.60 | 31.35 | 31.81 | 33.07 | 32.33 | 32.16 | 31.81 | 31.77 | 30.94 | 30.76 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q2 2023 Calculation
Net fixed asset turnover
= (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
÷ Property and equipment, net
= (265,921 + 277,149 + 269,850 + 261,176)
÷ 195,157 = 5.50
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue displayed an overall increasing trend from mid-2017 through late 2021, with periodic fluctuations. Starting at approximately 132.5 million USD in June 2017, revenue reached a peak of about 277.1 million USD by December 2021. However, there was a notable decline in mid-2020, where revenue dropped to around 164.9 million USD, followed by a sharp recovery and continued growth through 2021. In early 2022, revenue slightly decreased again to approximately 266 million USD by September 2022.
- Property and Equipment, Net
- The net value of property and equipment steadily increased over the entire period, moving from 92.8 million USD in June 2017 to a high of nearly 202.5 million USD in June 2022. There were minor fluctuations observed toward the end of the period, with a slight decline to around 195.2 million USD by September 2022. This pattern indicates consistent investment in fixed assets with a small downtrend in the most recent quarter.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio demonstrated a relatively stable performance with ratios generally oscillating around 5.0. Initially, the ratio was approximately 5.12 in mid-2017 and experienced minor variations over the years. It dipped to a low near 4.3 in early 2021, signaling decreased efficiency in using fixed assets to generate revenue during that time. Afterwards, it recovered steadily, surpassing the earlier figures and reaching about 5.5 by September 2022, indicating improved asset utilization efficiency.
- Insights and Overall Patterns
- The data indicates a firm commitment to expanding fixed assets, likely supporting the revenue growth observed over the period. The dip in revenue in mid-2020 coincides with a period of reduced asset turnover efficiency, possibly reflecting external challenges impacting operational performance. The recovery in both revenue and turnover ratio post-2020 suggests resilience and improved operational efficiency. The steady increase of property and equipment alongside increased revenue and improving asset turnover also points to effective capital deployment and potentially successful business expansion efforts.
Total Asset Turnover
Abiomed Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revenue | 265,921) | 277,149) | 269,850) | 261,176) | 248,142) | 252,585) | 241,245) | 231,663) | 209,764) | 164,850) | 206,659) | 221,584) | 204,974) | 207,666) | 207,081) | 200,563) | 181,778) | 180,010) | 174,436) | 154,022) | 132,823) | 132,468) | |||||||
| Total assets | 1,696,544) | 1,703,636) | 1,673,393) | 1,592,877) | 1,530,034) | 1,458,394) | 1,494,359) | 1,428,434) | 1,327,974) | 1,249,512) | 1,216,462) | 1,196,611) | 1,124,348) | 1,125,060) | 1,054,346) | 957,116) | 887,165) | 812,039) | 786,375) | 719,602) | 694,653) | 652,217) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 0.63 | 0.62 | 0.62 | 0.63 | 0.64 | 0.64 | 0.57 | 0.57 | 0.60 | 0.64 | 0.69 | 0.70 | 0.73 | 0.71 | 0.73 | 0.77 | 0.78 | 0.79 | 0.76 | 0.76 | 0.73 | 0.73 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 0.55 | 0.56 | 0.59 | 0.62 | 0.61 | 0.60 | 0.57 | 0.57 | 0.55 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.51 | 1.46 | 1.51 | 1.48 | 1.47 | 1.42 | 1.41 | 1.35 | 1.33 | 1.29 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 0.48 | 0.49 | 0.48 | 0.46 | 0.44 | 0.43 | 0.42 | 0.42 | 0.42 | 0.39 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 0.33 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.32 | 0.29 | 0.29 | 0.30 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 1.23 | 1.18 | 1.31 | 1.29 | 1.32 | 1.33 | 1.34 | 1.30 | 1.29 | 1.27 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q2 2023 Calculation
Total asset turnover
= (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
÷ Total assets
= (265,921 + 277,149 + 269,850 + 261,176)
÷ 1,696,544 = 0.63
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue exhibits a general upward trend over the observed periods, increasing from approximately $132.5 million in mid-2017 to a peak of around $277 million by the end of 2021. Despite some fluctuations, the growth is relatively steady. Notably, there was a significant dip in revenue in mid-2020, dropping to about $165 million from levels exceeding $200 million in the previous quarters. However, revenue recovered strongly thereafter, continuing its ascent into 2021. The most recent quarter shows a slight decrease compared to the previous quarter, with revenue at around $266 million.
- Total Assets Analysis
- Total assets have consistently increased throughout the periods, rising from approximately $652 million at mid-2017 to about $1.7 billion by late 2022. The growth trend is steady, with no notable declines, indicating ongoing asset accumulation or investment. This consistent growth in total assets suggests an expansion in the company's asset base over the analyzed timeframe.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which indicates how efficiently the company uses its assets to generate revenue, shows a declining trend over the reported quarters. Starting at around 0.73 in mid-2017, the ratio gradually decreased, reaching lows near 0.57 in early 2021. This suggests reduced efficiency in asset utilization during this period. Thereafter, the ratio sees a moderate recovery to approximately 0.63 by late 2022, indicating a slight improvement in asset usage efficiency, though it remains below the initial levels recorded in 2017.
- Summary of Financial Patterns
- The observed financial data reveals strong organic revenue growth alongside steady growth in total assets, signaling business expansion. However, the decreasing total asset turnover ratio over much of the period reflects that revenue growth has not kept pace proportionally with asset growth, implying a potential decline in operational efficiency or the absorption of assets that have not yet fully contributed to revenue. The dip and recovery in revenue during 2020 likely reflect external or operational challenges, with subsequent recovery pointing to resilience. Overall, the company has grown in size and revenue, though with some fluctuations in efficiency metrics.
Equity Turnover
Abiomed Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revenue | 265,921) | 277,149) | 269,850) | 261,176) | 248,142) | 252,585) | 241,245) | 231,663) | 209,764) | 164,850) | 206,659) | 221,584) | 204,974) | 207,666) | 207,081) | 200,563) | 181,778) | 180,010) | 174,436) | 154,022) | 132,823) | 132,468) | |||||||
| Stockholders’ equity | 1,539,787) | 1,536,196) | 1,503,326) | 1,432,938) | 1,384,563) | 1,307,522) | 1,329,675) | 1,261,441) | 1,182,409) | 1,101,848) | 1,065,466) | 1,046,863) | 991,457) | 1,002,593) | 936,890) | 851,530) | 792,954) | 723,359) | 689,524) | 632,482) | 604,886) | 567,044) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | 0.70 | 0.69 | 0.69 | 0.70 | 0.70 | 0.72 | 0.64 | 0.64 | 0.68 | 0.72 | 0.79 | 0.80 | 0.83 | 0.80 | 0.82 | 0.87 | 0.87 | 0.89 | 0.86 | 0.86 | 0.83 | 0.84 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 1.08 | 1.12 | 1.19 | 1.26 | 1.25 | 1.26 | 1.20 | 1.23 | 1.19 | 1.11 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 4.31 | 4.27 | 4.29 | 4.22 | 4.13 | 3.97 | 3.80 | 3.71 | 3.65 | 3.65 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 0.56 | 0.57 | 0.56 | 0.53 | 0.50 | 0.49 | 0.48 | 0.48 | 0.48 | 0.45 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 0.59 | 0.59 | 0.60 | 0.60 | 0.61 | 0.61 | 0.59 | 0.55 | 0.56 | 0.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 4.19 | 4.10 | 4.14 | 4.19 | 4.18 | 4.06 | 3.98 | 3.95 | 3.92 | 3.94 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q2 2023 Calculation
Equity turnover
= (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
÷ Stockholders’ equity
= (265,921 + 277,149 + 269,850 + 261,176)
÷ 1,539,787 = 0.70
2 Click competitor name to see calculations.
The company experienced a generally upward trend in revenue over the observed periods, with some fluctuations. From mid-2017 to early 2020, revenue showed consistent growth, increasing from approximately $132 million to over $221 million. However, a notable decline occurred in the second quarter of 2020, with revenue dropping to about $165 million, likely reflecting external adverse conditions impacting sales. After this dip, revenue resumed its growth trajectory, reaching a peak around $277 million by the end of 2021, before slightly declining again toward the last recorded period in late 2022.
Stockholders’ equity demonstrated a steady and continuous increase throughout the entire timeframe. Starting at approximately $567 million in mid-2017, equity grew robustly to nearly $1.54 billion by the third quarter of 2022. This consistent growth indicates sustained capital accumulation and possible retained earnings, signaling a strengthening financial foundation over the years.
- Equity Turnover Ratio
- The equity turnover ratio, reflecting how efficiently the company utilizes its equity to generate revenue, showed a declining trend overall. It started around 0.84 in mid-2017 and gradually decreased to approximately 0.7 by late 2022. This decline suggests that revenue growth did not keep pace proportionally with increases in stockholders’ equity, indicating a reduction in operational efficiency in terms of equity usage over time.
In summary, while the company grew substantially in both revenue and equity, the decreasing equity turnover ratio may warrant attention regarding capital utilization efficiency. The temporary revenue decline observed in 2020 was significant but followed by recovery and continued growth. The growth pattern in stockholders’ equity reflects a strengthening equity base, which may support future business activities.