Intuitive Surgical Inc. (NASDAQ:ISRG)

The financial data reveals a generally positive trajectory in profitability measures over the observed quarters.

Return on Assets (ROA)

ROA was not reported initially for the earliest quarters but commenced at 9.5% in March 2020. Following this, there was a notable increase, peaking at 13.2% in September 2021. Post-peak, ROA exhibited a gradual decline to just above 10% by December 2022. Since then, it has remained relatively stable with a mild upward trend, reaching approximately 12.93% by June 2025. This indicates improved efficiency in asset utilization over time, with some volatility around the 2021 peak.

Financial Leverage

Financial leverage has shown minimal variation across the periods. Starting around 1.16 in March 2020, it decreased slightly to a low of 1.12 in June 2025. The leverage ratio mostly oscillated between 1.12 and 1.17, indicating a consistently low and stable use of debt relative to equity throughout the observed timeframe. This stability suggests a conservative financial structure with limited reliance on external financing.

Return on Equity (ROE)

ROE data beginning in March 2020 showed an initial figure of 10.9%, followed by a period of increase to a high of approximately 14.97% in September 2021. Subsequently, ROE declined slightly but remained robust, ranging between 11.7% and 14.61% through June 2025. The trend reflects strong and sustained profitability from the equity perspective, implying effective management of shareholder capital.

Overall, the data suggests a solid increase in profitability metrics (both ROA and ROE) peaking around late 2021, followed by a period of stabilization. The consistent financial leverage ratio implies steady financial policy regarding borrowing. The trends denote improved operational performance and efficient capital management over the examined years.

Net Profit Margin

The net profit margin demonstrates an overall declining trend from the peak of 31.43% in the third quarter of 2020 to a low around 20.4% in the first quarter of 2023. Subsequently, the margin gradually improves, rising steadily to approximately 28.51% by the final quarter of 2025. This pattern indicates a period of margin compression followed by a recovery phase, suggesting fluctuations in profitability possibly due to changes in cost structure, pricing strategies, or market conditions.

Asset Turnover

Asset turnover shows a gradual improvement from 0.39 in the mid-2020 periods, increasing steadily to a peak of 0.49 in the second quarter of 2023. After this peak, asset turnover slightly declines and stabilizes around 0.44-0.45 towards the end of 2025. This indicates enhanced efficiency in using assets to generate revenue during the initial upward trend, followed by a period of modest stabilization, reflecting consistent asset utilization in recent periods.

Financial Leverage

Financial leverage remains relatively stable throughout the entire timeframe, fluctuating narrowly between approximately 1.12 and 1.17. There is no significant upward or downward trend, indicating a consistent approach to utilizing debt relative to equity. This stability suggests prudent management of capital structure without aggressive changes in leverage.

Return on Equity (ROE)

ROE experiences an initial rise from around 10.9% in early 2020 to a peak of nearly 14.97% in the third quarter of 2020. After this peak, it undergoes a decline to approximately 11.7% by early 2023, followed by a gradual and steady recovery reaching about 14.61% by the end of the 2025 period. This behavior mirrors the net profit margin trend, indicating that profitability fluctuations have a significant impact on shareholder returns, while relatively stable financial leverage provides a steady base for the equity returns.

Net Profit Margin

The net profit margin shows an initial presence beginning in the first quarter of 2021, where it starts at 24.33% and rises to a peak of 31.43% in the third quarter of 2021. Following this peak, a declining trend is observed through 2022, reaching a low of 20.4% by the first quarter of 2023. From this low point, the margin recovers steadily, reaching 28.51% by the fourth quarter of 2024, and sustaining around this level through the middle of 2025. Overall, the net profit margin demonstrates a cyclical pattern with a strong rebound after the early 2023 trough.

Asset Turnover

Asset turnover begins to be reported in the first quarter of 2021 at 0.39 and shows a gradual increase through the end of 2022, peaking at 0.49 in the second quarter of 2023. Thereafter, a subtle decline occurs, stabilizing close to 0.45 toward mid-2025. The trend suggests an improving efficiency in utilizing assets to generate sales during 2021 and early 2023, followed by a slight moderation but overall stability in asset utilization efficiency in the most recent periods.

Return on Assets (ROA)

The return on assets follows a similar pattern to the net profit margin and asset turnover, with data starting in the first quarter of 2021 at 9.5%. The measure improves notably until the third quarter of 2021, reaching 13.2%. A decline is then observable through to the third quarter of 2022, dropping to a low of approximately 10.05%. Since that point, ROA steadily increases, reaching approximately 12.93% by the end of the analyzed period in mid-2025. This improvement reflects enhanced profitability relative to the asset base after a mid-period dip.

Summary of Trends

The financial indicators collectively reveal an initial phase of growth in profitability and asset efficiency during 2021, followed by a period of contraction peaking in late 2022 to early 2023. Subsequent recovery across all metrics is noted, with net profit margin and ROA demonstrating strong rebounds by late 2024 and early 2025. Asset turnover shows a more modest recovery and stabilization, indicating consistent asset utilization efficiency in the later periods. The data suggests successful operational adjustments or favorable market conditions contributing to improving financial performance following a mid-period downturn.