Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Intuitive Surgical Inc., income tax expense (benefit), continuing operations

US$ in thousands

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 315,200 350,400 158,800 34,200 82,000
State 32,800 49,200 17,300 21,500 26,500
Foreign 74,400 48,100 50,100 26,900 18,000
Current income tax expense 422,400 447,700 226,200 82,600 126,500
Federal (122,400) (188,800) (21,400) 23,800 8,500
State (25,100) (16,400) 500 1,600 3,200
Foreign (133,300) 19,900 (43,100) 32,200 (17,800)
Deferred income tax expense (benefit) (280,800) (185,300) (64,000) 57,600 (6,100)
Income tax expense 141,600 262,400 162,200 140,200 120,400

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Intuitive Surgical Inc. current income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Intuitive Surgical Inc. deferred income tax expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intuitive Surgical Inc. income tax expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Effective Income Tax Rate (EITR)

Intuitive Surgical Inc., effective income tax rate (EITR) reconciliation

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 7.23% 16.33% 8.58% 11.62% 8.01%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intuitive Surgical Inc. effective income tax rate increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Intuitive Surgical Inc., components of deferred tax assets and liabilities

US$ in thousands

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Intangible assets 420,900 342,800 369,100 321,800 362,300
Capitalized research and development expenditures 306,400 172,500 4,800 — —
Research and development credits 193,200 156,700 98,500 76,300 56,100
Share-based compensation expense 135,100 121,300 110,900 101,100 95,600
Swiss tax credits 122,400 — — — —
Expenses deducted in later years for tax purposes 55,900 57,500 38,400 29,300 25,000
Lease liabilities 16,500 16,600 15,200 12,000 17,000
Net operating losses 2,800 6,400 9,700 27,700 5,100
Net unrealized losses on available-for-sale securities and other 9,200 45,500 5,300 — 5,300
Gross deferred tax assets 1,262,400 919,300 651,900 568,200 566,400
Valuation allowance (269,800) (168,600) (104,600) (81,400) (57,200)
Deferred tax assets 992,600 750,700 547,300 486,800 509,200
Property, plant, and equipment (60,300) (64,100) (79,400) (91,100) (58,300)
Right-of-use assets (11,800) (11,800) (12,300) (8,400) (17,000)
Intangible assets (9,800) (9,300) (9,700) (10,100) (8,300)
Other (200) (1,000) (5,100) (13,200) —
Deferred tax liabilities (82,100) (86,200) (106,500) (122,800) (83,600)
Net deferred tax assets (liabilities) 910,500 664,500 440,800 364,000 425,600

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intuitive Surgical Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intuitive Surgical Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Intuitive Surgical Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Intuitive Surgical Inc., deferred tax assets and liabilities, classification

US$ in thousands

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 910,500 664,600 441,400 367,700 425,600
Deferred tax liabilities — 100 600 3,700 —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Intuitive Surgical Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Intuitive Surgical Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Intuitive Surgical Inc., adjustments to financial statements

US$ in thousands

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Less: Noncurrent deferred tax assets, net 910,500 664,600 441,400 367,700 425,600
Total assets (adjusted) 14,531,000 12,309,400 13,113,600 10,801,200 9,307,600
Adjustment to Total Liabilities
Total liabilities (as reported) 2,044,200 1,861,400 1,603,500 1,409,800 1,448,500
Less: Noncurrent deferred tax liabilities, net — 100 600 3,700 —
Total liabilities (adjusted) 2,044,200 1,861,300 1,602,900 1,406,100 1,448,500
Adjustment to Total Intuitive Surgical, Inc. Stockholders’ Equity
Total Intuitive Surgical, Inc. stockholders’ equity (as reported) 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Less: Net deferred tax assets (liabilities) 910,500 664,500 440,800 364,000 425,600
Total Intuitive Surgical, Inc. stockholders’ equity (adjusted) 12,397,100 10,377,400 11,460,300 9,367,500 7,838,200
Adjustment to Net Income Attributable To Intuitive Surgical, Inc.
Net income attributable to Intuitive Surgical, Inc. (as reported) 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Add: Deferred income tax expense (benefit) (280,800) (185,300) (64,000) 57,600 (6,100)
Net income attributable to Intuitive Surgical, Inc. (adjusted) 1,517,200 1,137,000 1,640,600 1,118,200 1,373,200

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Intuitive Surgical Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Intuitive Surgical Inc., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 25.24% 21.25% 29.85% 24.33% 30.80%
Adjusted net profit margin 21.30% 18.27% 28.73% 25.66% 30.66%
Total Asset Turnover
Reported total asset turnover 0.46 0.48 0.42 0.39 0.46
Adjusted total asset turnover 0.49 0.51 0.44 0.40 0.48
Financial Leverage
Reported financial leverage 1.16 1.17 1.14 1.15 1.18
Adjusted financial leverage 1.17 1.19 1.14 1.15 1.19
Return on Equity (ROE)
Reported ROE 13.51% 11.98% 14.32% 10.90% 16.69%
Adjusted ROE 12.24% 10.96% 14.32% 11.94% 17.52%
Return on Assets (ROA)
Reported ROA 11.64% 10.19% 12.58% 9.50% 14.17%
Adjusted ROA 10.44% 9.24% 12.51% 10.35% 14.75%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intuitive Surgical Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intuitive Surgical Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Intuitive Surgical Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Intuitive Surgical Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Intuitive Surgical Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Intuitive Surgical Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Profitability Ratio
Net profit margin1 25.24% 21.25% 29.85% 24.33% 30.80%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,517,200 1,137,000 1,640,600 1,118,200 1,373,200
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Profitability Ratio
Adjusted net profit margin2 21.30% 18.27% 28.73% 25.66% 30.66%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 1,798,000 ÷ 7,124,100 = 25.24%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 1,517,200 ÷ 7,124,100 = 21.30%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intuitive Surgical Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Total Asset Turnover

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Activity Ratio
Total asset turnover1 0.46 0.48 0.42 0.39 0.46
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Adjusted total assets 14,531,000 12,309,400 13,113,600 10,801,200 9,307,600
Activity Ratio
Adjusted total asset turnover2 0.49 0.51 0.44 0.40 0.48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 7,124,100 ÷ 15,441,500 = 0.46

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 7,124,100 ÷ 14,531,000 = 0.49

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intuitive Surgical Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Solvency Ratio
Financial leverage1 1.16 1.17 1.14 1.15 1.18
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 14,531,000 12,309,400 13,113,600 10,801,200 9,307,600
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 12,397,100 10,377,400 11,460,300 9,367,500 7,838,200
Solvency Ratio
Adjusted financial leverage2 1.17 1.19 1.14 1.15 1.19

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 15,441,500 ÷ 13,307,600 = 1.16

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 14,531,000 ÷ 12,397,100 = 1.17

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Intuitive Surgical Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjusted Return on Equity (ROE)

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Profitability Ratio
ROE1 13.51% 11.98% 14.32% 10.90% 16.69%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,517,200 1,137,000 1,640,600 1,118,200 1,373,200
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 12,397,100 10,377,400 11,460,300 9,367,500 7,838,200
Profitability Ratio
Adjusted ROE2 12.24% 10.96% 14.32% 11.94% 17.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,798,000 ÷ 13,307,600 = 13.51%

2 Adjusted ROE = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,517,200 ÷ 12,397,100 = 12.24%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Intuitive Surgical Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Assets (ROA)

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Profitability Ratio
ROA1 11.64% 10.19% 12.58% 9.50% 14.17%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,517,200 1,137,000 1,640,600 1,118,200 1,373,200
Adjusted total assets 14,531,000 12,309,400 13,113,600 10,801,200 9,307,600
Profitability Ratio
Adjusted ROA2 10.44% 9.24% 12.51% 10.35% 14.75%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 1,798,000 ÷ 15,441,500 = 11.64%

2 Adjusted ROA = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total assets
= 100 × 1,517,200 ÷ 14,531,000 = 10.44%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Intuitive Surgical Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.