Common-Size Income Statement
Intuitive Surgical Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends between 2021 and 2025. Revenue composition remained relatively stable, with product revenue consistently representing approximately 84% of total revenue and service revenue accounting for the remaining 16%. However, significant shifts occurred within the expense structure and profitability metrics over the five-year period.
- Revenue and Cost of Revenue
- Revenue remained constant at 100% of revenue across all periods, as expected in a common-size statement. Cost of revenue as a percentage of revenue exhibited a consistent upward trend, increasing from -30.68% in 2021 to -34.00% in 2025. This indicates increasing costs associated with generating revenue.
- Gross Profit
- As a consequence of the rising cost of revenue, gross profit as a percentage of revenue experienced a gradual decline, moving from 69.32% in 2021 to 66.00% in 2025. This suggests a diminishing margin on each dollar of revenue generated.
- Operating Expenses
- Operating expenses, encompassing selling, general and administrative expenses and research and development, initially increased significantly from -37.43% in 2021 to -42.09% in 2022. However, these expenses began to decrease in subsequent years, reaching -36.73% in 2025. The decrease in selling, general and administrative expenses was more pronounced than the decrease in research and development expenses.
- Income from Operations
- Income from operations as a percentage of revenue decreased from 31.89% in 2021 to a low of 24.80% in 2023, before recovering to 29.27% in 2025. This fluctuation reflects the combined impact of gross profit trends and operating expense management.
- Net Income and Profitability
- Net income as a percentage of revenue followed a similar pattern to income from operations, declining from 30.26% in 2021 to 21.61% in 2022, then increasing to 28.58% in 2025. The income tax expense percentage fluctuated, contributing to the net income volatility. Net income attributable to Intuitive Surgical, Inc. mirrored this trend, moving from 29.85% to 28.38% over the period.
- Interest and Other Income
- Interest and other income, net, showed an increasing trend as a percentage of revenue, rising from 1.21% in 2021 to 3.64% in 2025. This contributed positively to income before taxes, particularly in the later years.
Overall, the period demonstrates a company navigating increasing costs of revenue, initially escalating operating expenses, and fluctuating tax rates. While profitability experienced a dip in 2022 and 2023, it showed signs of recovery towards the end of the analyzed period, potentially due to expense control measures and increased interest income.
AI Ask an analyst for more