Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Intuitive Surgical Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,596,933) | 1,187,823) | 1,700,018) | 1,149,207) | 1,415,357) | |
| Invested capital2 | 7,159,800) | 5,396,200) | 4,517,800) | 4,486,200) | 3,346,500) | |
| Performance Ratio | ||||||
| ROIC3 | 22.30% | 22.01% | 37.63% | 25.62% | 42.29% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Abbott Laboratories | 8.87% | 10.96% | 11.30% | 8.01% | 6.47% | |
| Cigna Group | 5.63% | 8.53% | 6.88% | 9.84% | 6.50% | |
| CVS Health Corp. | 7.17% | 3.13% | 7.01% | 6.63% | 5.97% | |
| Elevance Health Inc. | 9.35% | 10.17% | 11.14% | 8.67% | 9.75% | |
| Humana Inc. | 9.02% | 10.50% | 10.35% | 17.73% | 16.04% | |
| Medtronic PLC | 5.89% | 7.02% | 5.59% | 6.20% | 7.51% | |
| Shockwave Medical Inc. | 25.35% | 38.37% | -4.08% | -70.24% | -31.36% | |
| UnitedHealth Group Inc. | 14.59% | 13.68% | 13.51% | 13.84% | 13.91% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,596,933 ÷ 7,159,800 = 22.30%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Intuitive Surgical Inc. ROIC deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Decomposition of ROIC
Intuitive Surgical Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the decrease in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
Intuitive Surgical Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,596,933) | 1,187,823) | 1,700,018) | 1,149,207) | 1,415,357) | |
| Add: Cash operating taxes2 | 423,020) | 448,291) | 226,657) | 82,150) | 126,940) | |
| Net operating profit before taxes (NOPBT) | 2,019,953) | 1,636,114) | 1,926,675) | 1,231,357) | 1,542,298) | |
| Revenue | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | 4,478,500) | |
| Add: Increase (decrease) in deferred revenue | 53,400) | 24,300) | 31,700) | 17,100) | 37,900) | |
| Adjusted revenue | 7,177,500) | 6,246,500) | 5,741,800) | 4,375,500) | 4,516,400) | |
| Profitability Ratio | ||||||
| OPM3 | 28.14% | 26.19% | 33.56% | 28.14% | 34.15% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Abbott Laboratories | 16.84% | 20.24% | 20.37% | 16.05% | 14.97% | |
| Cigna Group | 3.57% | 5.39% | 4.69% | 7.72% | 5.38% | |
| CVS Health Corp. | 3.82% | 2.45% | 4.32% | 4.79% | 4.69% | |
| Elevance Health Inc. | 5.39% | 5.61% | 6.54% | 6.03% | 6.47% | |
| Humana Inc. | 3.64% | 4.33% | 4.49% | 6.64% | 5.73% | |
| Medtronic PLC | 19.63% | 19.15% | 16.48% | 17.88% | 22.11% | |
| Shockwave Medical Inc. | 25.29% | 25.51% | -2.64% | -93.91% | -115.00% | |
| UnitedHealth Group Inc. | 9.14% | 9.13% | 8.33% | 9.15% | 8.41% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 2,019,953 ÷ 7,177,500 = 28.14%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Intuitive Surgical Inc. OPM deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Turnover of Capital (TO)
Intuitive Surgical Inc., TO calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | 4,478,500) | |
| Add: Increase (decrease) in deferred revenue | 53,400) | 24,300) | 31,700) | 17,100) | 37,900) | |
| Adjusted revenue | 7,177,500) | 6,246,500) | 5,741,800) | 4,375,500) | 4,516,400) | |
| Invested capital1 | 7,159,800) | 5,396,200) | 4,517,800) | 4,486,200) | 3,346,500) | |
| Efficiency Ratio | ||||||
| TO2 | 1.00 | 1.16 | 1.27 | 0.98 | 1.35 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Abbott Laboratories | 0.67 | 0.71 | 0.69 | 0.57 | 0.55 | |
| Cigna Group | 2.26 | 2.09 | 1.90 | 1.70 | 1.62 | |
| CVS Health Corp. | 2.64 | 2.60 | 2.22 | 1.96 | 1.83 | |
| Elevance Health Inc. | 2.44 | 2.33 | 2.14 | 2.13 | 1.86 | |
| Humana Inc. | 3.48 | 3.18 | 2.70 | 3.48 | 3.41 | |
| Medtronic PLC | 0.44 | 0.46 | 0.42 | 0.41 | 0.42 | |
| Shockwave Medical Inc. | 1.09 | 1.54 | 1.36 | 0.74 | 0.27 | |
| UnitedHealth Group Inc. | 2.01 | 1.95 | 2.04 | 1.96 | 2.05 | |
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).
1 Invested capital. See details »
2 2023 Calculation
TO = Adjusted revenue ÷ Invested capital
= 7,177,500 ÷ 7,159,800 = 1.00
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Intuitive Surgical Inc. TO deteriorated from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Intuitive Surgical Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,596,933) | 1,187,823) | 1,700,018) | 1,149,207) | 1,415,357) | |
| Add: Cash operating taxes2 | 423,020) | 448,291) | 226,657) | 82,150) | 126,940) | |
| Net operating profit before taxes (NOPBT) | 2,019,953) | 1,636,114) | 1,926,675) | 1,231,357) | 1,542,298) | |
| Tax Rate | ||||||
| CTR3 | 20.94% | 27.40% | 11.76% | 6.67% | 8.23% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Abbott Laboratories | 21.67% | 23.97% | 20.05% | 12.92% | 21.15% | |
| Cigna Group | 30.27% | 24.44% | 23.01% | 24.93% | 25.68% | |
| CVS Health Corp. | 29.07% | 50.90% | 27.09% | 29.36% | 30.33% | |
| Elevance Health Inc. | 28.75% | 22.11% | 20.37% | 32.42% | 18.95% | |
| Humana Inc. | 28.91% | 23.74% | 14.62% | 23.28% | 17.80% | |
| Medtronic PLC | 32.28% | 19.53% | 18.59% | 14.72% | 19.30% | |
| Shockwave Medical Inc. | 7.67% | 2.32% | — | — | — | |
| UnitedHealth Group Inc. | 20.64% | 23.25% | 20.32% | 22.88% | 19.29% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 423,020 ÷ 2,019,953 = 20.94%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Intuitive Surgical Inc. CTR increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |