Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Abiomed Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Abiomed Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Abiomed Inc., profitability 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).
The financial performance over the observed periods reveals distinct trends in profitability and return metrics.
- Gross Profit Margin
- The gross profit margin exhibits a gradual downward trend starting from above 83% in mid-2017, consistently declining to a range slightly above 81% by late 2022. This indicates a slight decrease in production efficiency or increased cost of goods sold relative to sales over time, although the margin remains relatively stable overall above 80%.
- Operating Profit Margin
- Operating profit margin shows an initial upward trajectory from approximately 21.5% in mid-2017 to nearly 30.5% by late 2019, suggesting improved operating efficiency and cost management. Following this peak, the margin declines significantly during 2021 to about 13.6%-15.6%, signaling possible increases in operating expenses or reduced operating income during that period. By late 2022, the margin demonstrates a recovery trend rising back to around 24%, indicating operational improvements.
- Net Profit Margin
- The net profit margin experiences substantial fluctuations, rising from around 16% in mid-2017 to a peak above 33% around early 2019. This sharp increase highlights improved overall profitability possibly driven by both operational gains and favorable non-operating factors. Subsequently, the margin decreases to the low teens during 2021 before recovering to approximately 25% by late 2022. The volatility suggests varying impacts from tax, interest, or other extraordinary items during the periods.
- Return on Equity (ROE)
- ROE increases steadily from approximately 13.5% in mid-2017 to a high of nearly 28% by early 2019, reflective of strong shareholder returns and effective use of equity capital. However, the ratio diminishes to below 10% in early 2022, indicating reduced profitability relative to equity, before demonstrating a slight rebound approaching 17% by the last recorded quarter. This pattern parallels the operating and net profit margin fluctuations, emphasizing a period of financial stress followed by recovery.
- Return on Assets (ROA)
- The ROA follows a similar trend to ROE, increasing from roughly 11.7% in mid-2017 to a peak above 24% by early 2019, signaling efficient asset utilization to generate profits. A decline ensues, with ROA dropping to just above 8% by early 2022, highlighting a substantial decrease in asset profitability. A recovery occurs thereafter, with ROA rising to around 15.7% by late 2022, indicating improved asset management and profitability in the recent periods.
Overall, the data reflects a period of strong profitability and efficient financial performance peaking around early 2019, followed by a marked downturn during 2020 and 2021, potentially linked to external market conditions or internal challenges. The latter part of the timeline shows signs of financial recovery, with improving margins and returns by the end of 2022.
Return on Sales
Return on Investment
Gross Profit Margin
Abiomed Inc., gross profit margin 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) | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
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
Gross profit margin = 100
× (Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022)
÷ (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the periods from mid-2017 to late 2022. Overall, both revenue and gross profit demonstrate growth with some fluctuations, while the gross profit margin shows a gradual decline.
- Revenue
- Revenue exhibits a consistent upward trend from June 30, 2017, to September 30, 2022. Starting at approximately US$132.5 million, revenue increases steadily, peaking near US$277.1 million in December 2021. Although there are minor declines in certain quarters, notably in early 2020 and mid to late 2022, the overall growth trajectory remains positive, suggesting strong sales expansion over the analyzed periods.
- Gross Profit
- Gross profit follows a similar pattern to revenue, increasing from around US$110.6 million in June 2017 to a peak of approximately US$224.5 million in December 2021. Periods of growth are interspersed with some declines, particularly visible in early 2020 and mid-2022. Despite these fluctuations, the gross profit effectively doubles over the course of the timeframe, indicating improved operational profitability before expenses.
- Gross Profit Margin
- The gross profit margin exhibits a subtle but steady downward trend throughout the periods. Starting at approximately 83.7% in mid-2017, the margin gradually decreases to around 81.3% by the third quarter of 2022. This decline suggests that although revenue and gross profit are increasing in absolute terms, the cost of goods sold or related expenses may be rising at a somewhat faster pace, mildly compressing profitability at the gross level.
In summary, the data indicates robust growth in revenue and gross profit, reflecting successful business expansion or sales performance improvements. However, the slightly declining gross profit margin points to an increasing cost structure or pricing pressures that could warrant further analysis. The financial progression also shows occasional periods of softness, which might correspond to broader economic influences or company-specific events.
Operating Profit Margin
Abiomed Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Income (loss) from operations | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
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
Operating profit margin = 100
× (Income (loss) from operationsQ2 2023
+ Income (loss) from operationsQ1 2023
+ Income (loss) from operationsQ4 2022
+ Income (loss) from operationsQ3 2022)
÷ (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operational income of the company has exhibited fluctuations throughout the analyzed quarters. Initially, the income from operations demonstrated a generally positive trend, increasing from approximately 33 million US dollars in mid-2017 to peak values exceeding 70 million US dollars in the fourth quarter of 2020. However, a notable decrease occurred in the second quarter of 2021, with operational income turning negative, followed by a resilient recovery in subsequent quarters, stabilizing around 58 to 66 million US dollars by late 2022.
Revenue showed a clear upward trajectory over the period from June 2017 to September 2022. Starting at approximately 132 million US dollars, revenue rose consistently, peaking above 277 million US dollars towards the end of 2021. Despite slight declines observed in the first and third quarters of 2022, revenue maintained levels above 260 million US dollars, indicating sustained growth overall.
The operating profit margin generally improved from mid-2017 through early 2020, increasing from roughly 21.5% to just above 30%. This upward trend reflects enhanced operational efficiency or improved cost management. From early 2020 onwards, the margin experienced a downturn, falling below 20% during mid-2021 and reaching a low of around 13.6% in early 2022. A recovery phase ensued in mid to late 2022, with margins rebounding to above 23%. This volatility suggests external or internal challenges impacting profitability during that period, followed by corrective measures or improved market conditions.
- Income (loss) from operations
- Increased gradually until early 2021, faced a significant negative impact in mid-2021, and recovered subsequently.
- Revenue
- Exhibited a consistent growth trend over the full period, with minor declines during some 2022 quarters.
- Operating profit margin
- Improved steadily until early 2020, decreased sharply during 2021 and early 2022, then showed signs of recovery later in 2022.
Net Profit Margin
Abiomed Inc., net profit margin 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) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
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 profit margin = 100
× (Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022)
÷ (RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance demonstrates notable fluctuations across the observed quarterly periods, particularly in net income, revenue, and net profit margin.
- Net Income (Loss)
- The net income exhibits considerable variability over time. Starting at 37,374 thousand US dollars in mid-2017, it declines significantly to 13,446 thousand by the end of 2017, followed by a sharp increase reaching a peak of 90,066 thousand in mid-2018. Subsequently, net income experiences intermittent ups and downs, with some quarters showing considerable decreases, such as a loss of 26,525 thousand in mid-2021, before rising sharply again to 106,133 thousand in late 2022. Overall, the trend suggests episodic profitability with occasional underperformance or losses.
- Revenue
- Revenue shows a general upward trend over the entire period, beginning at 132,468 thousand US dollars in mid-2017 and reaching a high of 277,149 thousand by late 2021. Although some quarters display minor declines or slower growth, such as a dip in revenue in mid-2020 and mid-2022, the overall pattern indicates a sustained increase in revenue generation. The revenue growth appears relatively steady, supporting the company’s increasing sales capability over time.
- Net Profit Margin
- The net profit margin percentage displays fluctuations consistent with the net income pattern. Initially, it ranges between approximately 16% to 19%, then rises sharply to exceed 30% in late 2018 and early 2019, indicating efficient profitability during these quarters. Following this peak, the margin decreases to levels around 13-16% through 2021 and early 2022, reflecting reduced profit efficiency relative to revenue. Toward the end of the period, there is a recovery, with the margin improving to nearly 25%, suggesting better cost control or profitability factors returning.
In summary, while revenue generally trends upward, net income and net profit margin exhibit higher volatility. The company experiences periods of strong profitability interspersed with quarters of lower income or losses. The recovery of profit margins toward the end of the timeframe may indicate improved financial management or operational efficiency following recent downturns. Monitoring factors influencing these oscillations is essential for sustaining profitability with rising revenue levels.
Return on Equity (ROE)
Abiomed Inc., ROE 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) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
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
ROE = 100
× (Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the financial performance reveals several notable trends over the examined periods. Net income exhibited significant fluctuations, with periods of strong profitability interspersed with occasional declines. Initially, net income showed an upward trajectory, peaking notably in mid-2018, indicating a phase of robust earnings generation. This was followed by a period of volatility, with net income declining sharply in late 2019 and early 2021, including a negative figure in mid-2021, suggesting challenges such as elevated costs or revenue reductions. However, net income recovered strongly towards the end of the timeframe, reaching the highest level in late 2022, reflecting a resilient turnaround.
Stockholders’ equity demonstrated a consistent upward trend throughout, indicating steady growth in the company’s net assets. The equity base expanded notably from mid-2017 to late 2022, nearly tripling in size, which suggests effective capital accumulation either through retained earnings or additional capital infusions. This steady increase in equity provides a solid foundation for financial stability and potential future investments.
Return on Equity (ROE) presented a pattern that loosely corresponded to the fluctuations in net income but also reflected broader efficiency and profitability dynamics. ROE generally trended upward from 2017 through early 2019, reaching a peak toward the end of 2018 and early 2019, indicating enhanced profitability relative to equity during this period. Subsequently, ROE declined significantly during 2020 and early 2021, reaching its lowest levels in late 2021, which aligns with the periods of net income weakness. The recovery of ROE in the final quarters indicates improved utilization of equity to generate earnings, approaching mid-range levels by late 2022.
- Net Income (Loss)
- Displayed considerable variability with a significant peak in June 2018 and a trough in June 2021. Despite some quarters with decreased profitability, the overall trend by the end of the period shows strong recovery, culminating in the highest quarterly net income recorded in September 2022.
- Stockholders’ Equity
- Exhibited consistent growth without any periods of decline, indicating steady accumulation of shareholder value and financial strengthening. The increase almost tripled equity over the five-year span, reflecting positive retained earnings and possibly capital contributions.
- Return on Equity (ROE)
- Showed improvement up to early 2019 followed by a downturn in 2020 and 2021, aligning with the declines in net income during these periods. The subsequent recovery in ROE suggests enhanced profitability efficiency in later periods, though not reaching earlier peak values by the end of the timeline.
In summary, the company demonstrated solid equity expansion and overall resilience in profitability despite intermittent downturns. The variations in net income and ROE indicate sensitivity to certain operational or market factors, while the equity growth signals a strong balance sheet foundation supporting ongoing business activities.
Return on Assets (ROA)
Abiomed Inc., ROA 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) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
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
ROA = 100
× (Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income Trend
- The net income exhibits considerable variability across the periods observed. Initial values ranged between approximately $13 million to $90 million from mid-2017 through mid-2018, with a notable peak around June 2018. Following this, fluctuations persist with several quarters showing sharp increases and decreases. A pronounced dip into negative territory occurred around mid-2021, marking an unusual loss compared to prior positive earnings. Subsequently, net income recovered and rose to the highest levels recorded in the dataset by late 2022, exceeding $100 million. This pattern indicates alternating periods of growth and contraction, highlighting volatility in profitability.
- Total Assets Growth
- Total assets steadily increased over the entire timeframe, beginning from approximately $652 million in mid-2017 and advancing to nearly $1.7 billion by late 2022. This represents a more than twofold rise, reflecting consistent asset accumulation and expansion. There are no evident periods of contraction in total assets, suggesting ongoing investment or retention of resources despite fluctuations in earnings.
- Return on Assets (ROA) Fluctuations
- The return on assets follows a rising trend from 2017 through early 2019, reaching values above 24%, indicating improved efficiency in asset utilization during this period. Post this peak, ROA generally declines, reaching a low in the range of approximately 8% through 2021 and early 2022. Towards the end of the series, ROA again shows an upward trend, increasing to around 16%. These movements mirror the variations in net income and suggest periods of reduced and improved profitability relative to asset base.
- Overall Insights
- The company demonstrates sustained growth in asset base while experiencing notable swings in net income and asset profitability. The negative net income point in 2021 represents an abnormal event within an otherwise positive earnings trajectory. The general increase in ROA towards the end indicates a recovery phase and potential operational efficiencies. Continuous asset growth provides a solid foundation for future performance, although the volatility in earnings suggests sensitivity to market conditions or operational challenges during certain quarters.