Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Abiomed Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Abiomed Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Abiomed Inc. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Abiomed Inc. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Abiomed Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Abiomed Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Abiomed Inc., gross profit margin 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) | |||||||
| Gross profit | 843,595) | 685,615) | 689,578) | 639,865) | 495,168) | 374,677) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 81.76% | 80.90% | 82.01% | 83.16% | 83.40% | 84.14% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | 51.54% | 52.21% | 50.49% | 52.46% | — | — | |
| Cigna Group | 12.44% | 12.41% | 14.43% | 15.57% | — | — | |
| CVS Health Corp. | 16.62% | 17.48% | 18.01% | 17.41% | — | — | |
| Danaher Corp. | 60.21% | 60.95% | 55.98% | 55.74% | — | — | |
| Elevance Health Inc. | 16.79% | 17.09% | 19.71% | 18.77% | — | — | |
| Intuitive Surgical Inc. | 67.44% | 69.32% | 65.65% | 69.45% | — | — | |
| Medtronic PLC | 67.98% | 65.19% | 67.41% | 70.04% | 69.77% | — | |
| UnitedHealth Group Inc. | 24.09% | 23.60% | 25.62% | 23.19% | — | — | |
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 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 843,595 ÷ 1,031,753 = 81.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Abiomed Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Operating Profit Margin
Abiomed Inc., operating profit margin 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) | |||||||
| Income from operations | 140,720) | 229,557) | 249,219) | 224,812) | 157,137) | 90,138) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 13.64% | 27.09% | 29.64% | 29.22% | 26.47% | 20.24% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | 19.16% | 19.56% | 15.48% | 14.21% | — | — | |
| Cigna Group | 4.69% | 4.60% | 5.12% | 5.31% | — | — | |
| CVS Health Corp. | 2.41% | 4.54% | 5.19% | 4.69% | — | — | |
| Danaher Corp. | 27.61% | 25.35% | 18.99% | 18.25% | — | — | |
| Elevance Health Inc. | 4.94% | 5.15% | 4.97% | 5.49% | — | — | |
| Humana Inc. | 4.11% | 3.80% | 6.56% | 4.96% | — | — | |
| Intuitive Surgical Inc. | 25.35% | 31.89% | 24.09% | 30.69% | — | — | |
| Medtronic PLC | 18.15% | 14.89% | 16.57% | 20.51% | 22.20% | — | |
| UnitedHealth Group Inc. | 8.83% | 8.40% | 8.76% | 8.19% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Health Care Equipment & Services | 6.79% | 7.20% | 7.31% | 7.11% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Health Care | 13.11% | 13.07% | 10.36% | 12.35% | — | — | |
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 2022 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 140,720 ÷ 1,031,753 = 13.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Abiomed Inc. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Abiomed Inc., net profit margin 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 income | 136,505) | 225,525) | 203,009) | 259,016) | 112,170) | 52,116) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 13.23% | 26.61% | 24.14% | 33.66% | 18.89% | 11.70% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | 15.88% | 16.42% | 12.99% | 11.56% | — | — | |
| Cigna Group | 3.72% | 3.11% | 5.31% | 3.35% | — | — | |
| CVS Health Corp. | 1.29% | 2.72% | 2.68% | 2.59% | — | — | |
| Danaher Corp. | 22.91% | 21.84% | 16.36% | 16.80% | — | — | |
| Elevance Health Inc. | 3.87% | 4.46% | 3.78% | 4.66% | — | — | |
| Humana Inc. | 3.03% | 3.54% | 4.43% | 4.20% | — | — | |
| Intuitive Surgical Inc. | 21.25% | 29.85% | 24.33% | 30.80% | — | — | |
| Medtronic PLC | 15.90% | 11.97% | 16.56% | 15.16% | 10.36% | — | |
| UnitedHealth Group Inc. | 6.25% | 6.06% | 6.03% | 5.76% | — | — | |
| Net Profit Margin, Sector | |||||||
| Health Care Equipment & Services | 5.09% | 5.42% | 5.46% | 5.09% | — | — | |
| Net Profit Margin, Industry | |||||||
| Health Care | 10.17% | 10.82% | 7.69% | 10.13% | — | — | |
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 2022 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 136,505 ÷ 1,031,753 = 13.23%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Abiomed Inc. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Abiomed Inc., ROE 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 income | 136,505) | 225,525) | 203,009) | 259,016) | 112,170) | 52,116) | |
| Stockholders’ equity | 1,503,326) | 1,329,675) | 1,065,466) | 936,890) | 689,524) | 452,071) | |
| Profitability Ratio | |||||||
| ROE1 | 9.08% | 16.96% | 19.05% | 27.65% | 16.27% | 11.53% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Abbott Laboratories | 18.90% | 19.75% | 13.71% | 11.86% | — | — | |
| Cigna Group | 14.86% | 11.39% | 16.81% | 11.26% | — | — | |
| CVS Health Corp. | 5.84% | 10.54% | 10.35% | 10.39% | — | — | |
| Danaher Corp. | 14.39% | 14.24% | 9.17% | 9.94% | — | — | |
| Elevance Health Inc. | 16.59% | 16.93% | 13.77% | 15.15% | — | — | |
| Humana Inc. | 18.33% | 18.24% | 24.53% | 22.49% | — | — | |
| Intuitive Surgical Inc. | 11.98% | 14.32% | 10.90% | 16.69% | — | — | |
| Medtronic PLC | 9.59% | 7.01% | 9.44% | 9.25% | 6.12% | — | |
| UnitedHealth Group Inc. | 25.87% | 24.09% | 23.52% | 24.02% | — | — | |
| ROE, Sector | |||||||
| Health Care Equipment & Services | 15.23% | 14.96% | 14.51% | 13.87% | — | — | |
| ROE, Industry | |||||||
| Health Care | 22.36% | 22.87% | 16.00% | 21.03% | — | — | |
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 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 136,505 ÷ 1,503,326 = 9.08%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Abiomed Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Abiomed Inc., ROA 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 income | 136,505) | 225,525) | 203,009) | 259,016) | 112,170) | 52,116) | |
| Total assets | 1,673,393) | 1,494,359) | 1,216,462) | 1,054,346) | 786,375) | 550,414) | |
| Profitability Ratio | |||||||
| ROA1 | 8.16% | 15.09% | 16.69% | 24.57% | 14.26% | 9.47% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Abbott Laboratories | 9.31% | 9.40% | 6.20% | 5.43% | — | — | |
| Cigna Group | 4.63% | 3.46% | 5.44% | 3.28% | — | — | |
| CVS Health Corp. | 1.82% | 3.39% | 3.11% | 2.98% | — | — | |
| Danaher Corp. | 8.55% | 7.73% | 4.79% | 4.85% | — | — | |
| Elevance Health Inc. | 5.86% | 6.26% | 5.28% | 6.21% | — | — | |
| Humana Inc. | 6.52% | 6.61% | 9.63% | 9.31% | — | — | |
| Intuitive Surgical Inc. | 10.19% | 12.58% | 9.50% | 14.17% | — | — | |
| Medtronic PLC | 5.54% | 3.87% | 5.28% | 5.16% | 3.40% | — | |
| UnitedHealth Group Inc. | 8.19% | 8.15% | 7.81% | 7.96% | — | — | |
| ROA, Sector | |||||||
| Health Care Equipment & Services | 5.87% | 5.80% | 5.54% | 5.16% | — | — | |
| ROA, Industry | |||||||
| Health Care | 8.30% | 8.19% | 5.42% | 7.18% | — | — | |
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 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 136,505 ÷ 1,673,393 = 8.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Abiomed Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |