Stock Analysis on Net
Stock Analysis on Net
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Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Intuitive Surgical Inc., adjustment to net income attributable to Intuitive Surgical, Inc.

US$ in thousands

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Intuitive Surgical, Inc. (as reported) 1,379,300  1,127,900  660,000  735,900  588,800 
Add: Available-for-sale investments, net change, net of tax 30,200  1,500  (2,700) (4,400) (4,000)
Net income attributable to Intuitive Surgical, Inc. (adjusted) 1,409,500  1,129,400  657,300  731,500  584,800 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Intuitive Surgical Inc., adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 30.80% 30.29% 21.09% 27.21% 24.69%
Adjusted net profit margin 31.47% 30.33% 21.01% 27.05% 24.53%
Return on Equity (ROE)
Reported ROE 16.69% 16.89% 13.97% 12.74% 13.63%
Adjusted ROE 17.06% 16.91% 13.91% 12.66% 13.54%
Return on Assets (ROA)
Reported ROA 14.17% 14.37% 11.46% 11.34% 12.00%
Adjusted ROA 14.48% 14.39% 11.42% 11.28% 11.92%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Intuitive Surgical Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Intuitive Surgical Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Intuitive Surgical Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Net Profit Margin

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,379,300  1,127,900  660,000  735,900  588,800 
Revenue 4,478,500  3,724,200  3,128,900  2,704,400  2,384,400 
Profitability Ratio
Net profit margin1 30.80% 30.29% 21.09% 27.21% 24.69%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,409,500  1,129,400  657,300  731,500  584,800 
Revenue 4,478,500  3,724,200  3,128,900  2,704,400  2,384,400 
Profitability Ratio
Adjusted net profit margin2 31.47% 30.33% 21.01% 27.05% 24.53%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 1,379,300 ÷ 4,478,500 = 30.80%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 1,409,500 ÷ 4,478,500 = 31.47%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Intuitive Surgical Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,379,300  1,127,900  660,000  735,900  588,800 
Total Intuitive Surgical, Inc. stockholders’ equity 8,263,800  6,678,800  4,725,200  5,777,800  4,319,500 
Profitability Ratio
ROE1 16.69% 16.89% 13.97% 12.74% 13.63%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,409,500  1,129,400  657,300  731,500  584,800 
Total Intuitive Surgical, Inc. stockholders’ equity 8,263,800  6,678,800  4,725,200  5,777,800  4,319,500 
Profitability Ratio
Adjusted ROE2 17.06% 16.91% 13.91% 12.66% 13.54%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).

2019 Calculations

1 ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,379,300 ÷ 8,263,800 = 16.69%

2 Adjusted ROE = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,409,500 ÷ 8,263,800 = 17.06%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Intuitive Surgical Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,379,300  1,127,900  660,000  735,900  588,800 
Total assets 9,733,200  7,846,700  5,758,000  6,486,900  4,907,300 
Profitability Ratio
ROA1 14.17% 14.37% 11.46% 11.34% 12.00%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 1,409,500  1,129,400  657,300  731,500  584,800 
Total assets 9,733,200  7,846,700  5,758,000  6,486,900  4,907,300 
Profitability Ratio
Adjusted ROA2 14.48% 14.39% 11.42% 11.28% 11.92%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).

2019 Calculations

1 ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 1,379,300 ÷ 9,733,200 = 14.17%

2 Adjusted ROA = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 1,409,500 ÷ 9,733,200 = 14.48%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Intuitive Surgical Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.