Intuitive Surgical Inc. (NASDAQ:ISRG)

Return on Assets (ROA)

The ROA exhibited an overall upward trend over the five-year period. It started at 9.5% in 2020, increased significantly to 12.58% in 2021, then experienced a decline to 10.19% in 2022. Subsequently, it rose again to 11.64% in 2023 and continued to improve, reaching 12.39% in 2024. This pattern indicates fluctuating yet generally improving efficiency in asset utilization over time.

Financial Leverage

The financial leverage ratio remained relatively stable throughout the period, ranging narrowly between 1.14 and 1.17. It started at 1.15 in 2020, decreased slightly to 1.14 in 2021, rose to a peak of 1.17 in 2022, then slightly declined again to 1.16 in 2023 and 1.14 in 2024. This suggests a consistent capital structure with minimal changes in debt levels relative to equity.

Return on Equity (ROE)

ROE demonstrated a pattern similar to ROA, reflecting variations in profitability. It rose from 10.9% in 2020 to a peak of 14.32% in 2021, decreased to 11.98% in 2022, and subsequently increased to 13.51% in 2023 and 14.13% in 2024. The fluctuations indicate variable profitability, but with a general trend of improvement by the end of the period.

Net Profit Margin

The net profit margin exhibits fluctuations over the periods analyzed. It increased notably from 24.33% in 2020 to a peak of 29.85% in 2021. However, it then declined sharply to 21.25% in 2022 before recovering moderately to 25.24% in 2023 and further improving to 27.81% in 2024. This pattern indicates some volatility in profitability, with a significant dip followed by a steady rebound.

Asset Turnover

Asset turnover shows a generally positive trend from 2020 to 2022, rising from 0.39 to 0.48, indicating more efficient use of assets to generate sales. In 2023, a slight decline to 0.46 occurs, followed by a marginal further decrease to 0.45 in 2024. Overall, asset utilization improved initially but experienced stabilization and slight reduction in the latter years.

Financial Leverage

Financial leverage remains relatively stable throughout the periods, fluctuating minimally between 1.14 and 1.17. This suggests the company maintained a consistent capital structure with limited variation in the extent to which debt is used to finance assets.

Return on Equity (ROE)

ROE shows an upward trend overall, starting at 10.9% in 2020 and increasing to a high of 14.32% in 2021. After a decline to 11.98% in 2022, ROE rose again to 13.51% in 2023 and further to 14.13% in 2024. The trend mirrors the net profit margin pattern to some extent, reflecting fluctuations in profitability but a general improvement in generating returns on equity over time.

Tax Burden

The tax burden ratio demonstrates variability over the analyzed period, beginning at 0.88 in 2020, peaking at 0.93 in 2023, and then declining to 0.87 in 2024. This indicates fluctuations in the proportion of earnings retained after taxes, with the highest retention observed in 2023 and a slight decrease afterward.

Interest Burden

The interest burden remains constant at a ratio of 1 throughout the period, suggesting consistent management of interest expenses relative to earnings before interest and taxes, with no observable impact on profitability from interest costs.

EBIT Margin

The EBIT margin shows notable fluctuations, reaching its peak of 32.69% in 2021 and experiencing a trough at 25.47% in 2022. Subsequently, the margin improves, recovering to 31.84% by 2024. This pattern reflects variability in operating profitability, with a significant dip in 2022 followed by a recovery phase.

Asset Turnover

Asset turnover improved from 0.39 in 2020 to a peak of 0.48 in 2022, suggesting enhanced efficiency in utilizing assets to generate sales. A slight decline to 0.45 by 2024 indicates a modest reduction in asset utilization efficiency after 2022.

Financial Leverage

Financial leverage remains relatively stable, fluctuating narrowly between 1.14 and 1.17. This stability implies a consistent capital structure with little change in reliance on debt over equity during the period under review.

Return on Equity (ROE)

The ROE trend mirrors variations in other profitability metrics, starting at 10.9% in 2020, rising to 14.32% in 2021, followed by a decline to 11.98% in 2022. It then increases again to reach 14.13% by 2024. This pattern indicates periodic changes in the efficiency of generating profits from shareholders' equity, influenced by shifts in profitability components such as EBIT margin and asset turnover.

Net Profit Margin

The net profit margin exhibits fluctuations over the observed period. Starting at 24.33% in 2020, it increased notably to 29.85% in 2021, indicating improved profitability in that year. However, the margin decreased substantially to 21.25% in 2022, suggesting a dip in profit efficiency relative to revenue. Subsequently, a recovery is observed in 2023 and 2024, with margins rising to 25.24% and 27.81%, respectively, pointing to an overall upward trend after the 2022 decline.

Asset Turnover

The asset turnover ratio shows a general upward trend from 0.39 in 2020 to a peak of 0.48 in 2022, indicating increasing efficiency in utilizing assets to generate sales. In the following years, 2023 and 2024, the ratio slightly declines to 0.46 and 0.45, respectively. Although there is a minor reduction, the values remain higher than the initial 2020 figure, reflecting sustained improvement in asset utilization compared to the starting point.

Return on Assets (ROA)

ROA demonstrates a positive trajectory overall. It begins at 9.5% in 2020 and rises sharply to 12.58% in 2021. A decline follows in 2022 to 10.19%, mirroring the trend observed in net profit margin. Subsequently, ROA improves again to 11.64% in 2023 and further to 12.39% in 2024. This pattern suggests a recovery in the company's ability to generate profits from its assets after the 2022 downturn, with performance in 2024 approaching the peak levels seen in 2021.

The financial metrics indicate several noteworthy trends over the five-year period. The tax burden ratio fluctuated, starting at 0.88 in 2020, increasing to a peak of 0.93 in 2023 before declining slightly to 0.87 in 2024. This suggests some variability in the effective tax rate or tax expenses relative to pre-tax income across the years.

The interest burden remained constant at a ratio of 1 throughout the entire period, indicating that interest expenses have not impacted earnings before tax, implying the absence of interest-bearing debt or negligible interest costs.

The EBIT margin displayed fluctuation as well, beginning at 27.55% in 2020 and reaching a high of 32.69% in 2021. It then declined to 25.47% in 2022, followed by moderate recovery to 27.23% in 2023 and a further rise to 31.84% in 2024. This pattern reflects variations in operating efficiency and profitability at the operating income level.

Asset turnover improved from 0.39 in 2020 to a peak of 0.48 in 2022, indicating increasing efficiency in utilizing assets to generate sales. After 2022, this ratio slightly decreased to 0.46 in 2023 and 0.45 in 2024, which may suggest a stabilization or minor reduction in asset utilization efficiency.

The return on assets (ROA) correlated with the trends in EBIT margin and asset turnover, beginning at 9.5% in 2020 and climbing to a peak of 12.58% in 2021. It then decreased to 10.19% in 2022, followed by incremental improvements to 11.64% in 2023 and 12.39% in 2024. This indicates an overall positive but variable ability to generate net income from the company's asset base over the period analyzed.

Tax Burden

The tax burden ratio demonstrates variability across the observed periods. Starting at 0.88 in 2020, it increased to a peak of 0.93 in 2023, followed by a slight decline to 0.87 in 2024. This indicates fluctuations in the effective tax rate impacting net income.

Interest Burden

The interest burden ratio remains consistently at 1 throughout the periods, indicating the absence of interest expenses or the maintenance of earnings before interest and taxes equal to earnings before taxes without any interest cost impact.

EBIT Margin

The EBIT margin experienced notable fluctuations. It rose from 27.55% in 2020 to a high of 32.69% in 2021, then decreased to 25.47% in 2022. Subsequently, there was a recovery to 27.23% in 2023, followed by a significant increase to 31.84% in 2024. Overall, this reflects variability in operational profitability with a strong rebound towards the end of the period.

Net Profit Margin

Net profit margin generally follows the pattern seen in the EBIT margin but with more pronounced changes. It increased from 24.33% in 2020 to a high of 29.85% in 2021, then dropped sharply to 21.25% in 2022. This margin improved to 25.24% in 2023 and further increased to 27.81% in 2024. This suggests that despite the fluctuations, the company managed to regain profitability levels closer to earlier higher margins by the end of the analysis period.