Intuitive Surgical Inc. (NASDAQ:ISRG)

The solvency position appears remarkably stable over the observed period. Several key ratios indicate a consistently low level of debt relative to equity, capital, and assets. The company demonstrates a strong ability to meet its fixed and total financial obligations.

Debt Levels

The Debt to Equity, Debt to Capital, and Debt to Assets ratios, including operating lease liabilities, all remain constant at 0.01 throughout the period from 2022 to 2025. This suggests a deliberate and consistent capital structure policy with minimal reliance on debt financing.

Leverage

Financial leverage exhibits a slight fluctuation, beginning at 1.14 in 2021, increasing to 1.17 in 2022, decreasing slightly to 1.16 in 2023, then decreasing to 1.14 in 2024, and finally increasing to 1.15 in 2025. These changes are minimal and do not indicate a significant shift in the company’s use of leverage.

Coverage Ratios

Fixed Charge Coverage demonstrates a positive trend. After a decrease from 93.66 in 2021 to 63.52 in 2022, the ratio recovers and increases steadily to 81.96 by 2025. This indicates an improving ability to cover fixed charges with earnings. Interest Coverage is not available for analysis due to missing values.

Overall, the solvency ratios suggest a financially healthy position characterized by low debt and a robust capacity to service its obligations. The consistent debt ratios and improving fixed charge coverage contribute to a picture of financial stability.

An examination of the provided financial information reveals trends in the company’s solvency position as measured by the debt-to-equity ratio. Stockholders’ equity demonstrates a generally increasing trend over the observed period, while information regarding total debt is absent, preventing a complete calculation of the debt-to-equity ratio for each year.

Stockholders’ Equity

Total stockholders’ equity decreased from US$11,901.1 million in 2021 to US$11,041.9 million in 2022, representing a decline of approximately 7.2%. However, equity then increased significantly, reaching US$13,307.6 million in 2023, US$16,433.7 million in 2024, and further to US$17,824.0 million in 2025. This indicates a strengthening of the company’s equity base in the latter part of the period.

Debt-to-Equity Ratio

Due to the lack of total debt figures, the debt-to-equity ratio cannot be calculated or analyzed for any of the years presented. Without debt values, it is impossible to assess the company’s financial leverage or the extent to which its assets are financed by debt versus equity. The absence of this information limits the ability to draw conclusions about the company’s solvency risk.

The observed increase in stockholders’ equity is a positive indicator, suggesting improved financial strength from an equity perspective. However, a comprehensive solvency assessment requires the inclusion of total debt figures to determine the company’s overall financial risk profile.

The analysis reveals a consistent debt-to-equity ratio over the period from 2021 to 2025, despite significant changes in the absolute values of both total debt and total stockholders’ equity. While debt and equity fluctuate, their relative proportion remains remarkably stable.

Total Debt (including operating lease liability)

Total debt exhibited an initial increase from US$87,000 thousand in 2021 to US$93,800 thousand in 2022. A slight decrease was then observed in 2023, with debt falling to US$89,800 thousand. However, a substantial increase is apparent in subsequent years, reaching US$146,000 thousand in 2024 and further growing to US$170,900 thousand in 2025. This indicates a growing reliance on debt financing in the later years of the observed period.

Total Stockholders’ Equity

Total stockholders’ equity decreased from US$11,901,100 thousand in 2021 to US$11,041,900 thousand in 2022. A recovery is then noted in 2023, with equity rising to US$13,307,600 thousand. Continued growth is observed in 2024 and 2025, reaching US$16,433,700 thousand and US$17,824,000 thousand respectively. This suggests increasing retained earnings and/or other equity contributions over the latter part of the period.

Debt to Equity Ratio

The debt-to-equity ratio remained constant at 0.01 throughout the entire five-year period. This indicates that for every dollar of equity, the company has one cent of debt. Despite the increases in absolute debt levels in 2024 and 2025, the corresponding growth in equity has maintained this consistent ratio. This suggests a deliberate strategy to fund growth with a proportional increase in both debt and equity, preserving the company’s capital structure.

In conclusion, while both debt and equity experienced fluctuations, the debt-to-equity ratio remained stable, indicating a consistent financial leverage profile over the analyzed timeframe.

An examination of the provided financial information reveals a pattern in the company’s capital structure over the five-year period. While total debt figures are unavailable, the trend in total capital and the resulting debt-to-capital ratio offer insights into the company’s financial leverage.

Total Capital

Total capital demonstrates an overall increasing trend from 2021 to 2025. It decreased slightly from US$11,901,100 thousand in 2021 to US$11,041,900 thousand in 2022. However, it then increased significantly to US$13,307,600 thousand in 2023, continued to US$16,433,700 thousand in 2024, and further rose to US$17,824,000 thousand in 2025. This suggests a growing equity base or reinvestment of earnings.

Debt to Capital Ratio

The debt-to-capital ratio is not populated for the years 2021, 2022, and 2023. However, values are available for 2024 and 2025. The ratio is not available for earlier years, preventing a complete trend analysis. The ratio is not available for the earlier years, making it impossible to determine the initial leverage position. Without the total debt values, it is impossible to determine the absolute level of debt.

The absence of total debt figures limits a comprehensive solvency assessment. The increasing trend in total capital suggests potential strengthening of the company’s financial position, but this cannot be definitively confirmed without understanding the corresponding changes in total debt.

The information presents a five-year trend of total debt, total capital, and the resulting debt-to-capital ratio, inclusive of operating lease liabilities. Throughout the observed period, the debt-to-capital ratio remains consistently low and stable.

Total Debt (including operating lease liability)

Total debt exhibited an initial increase from $87.0 million in 2021 to $93.8 million in 2022. A subsequent decrease to $89.8 million was noted in 2023. However, a substantial rise is observed in 2024, reaching $146.0 million, and continues to increase in 2025 to $170.9 million. This indicates a growing reliance on debt financing in the latter part of the period.

Total Capital (including operating lease liability)

Total capital decreased from $11,988.1 million in 2021 to $11,135.7 million in 2022. An increase is then observed in 2023, reaching $13,397.4 million, and continues to grow through 2025, reaching $17,994.9 million. This suggests an overall strengthening of the company’s capital base, despite the initial decline.

Debt-to-Capital Ratio (including operating lease liability)

Despite the fluctuations in total debt and total capital, the debt-to-capital ratio remains constant at 0.01 across all five years. This signifies that the proportion of debt financing relative to the total capital structure has not changed, even with the increases in absolute debt levels in 2024 and 2025. The consistent ratio suggests a deliberate capital structure management approach, maintaining a low level of financial leverage.

In summary, while absolute debt levels have increased in recent years, the company has simultaneously increased its capital base, maintaining a consistently low and stable debt-to-capital ratio. This indicates a controlled approach to debt financing and a strong overall capital position.

An examination of the provided financial information reveals a pattern in the relationship between total debt and total assets over the five-year period. While total debt figures are unavailable, the trend in total assets and the calculated debt-to-assets ratio offer insights into the company’s financial leverage.

Total Assets

Total assets demonstrate a generally increasing trend throughout the observed period. Beginning at US$13,555,000 in 2021, assets decreased to US$12,974,000 in 2022. However, a subsequent and consistent increase is noted, reaching US$15,441,500 in 2023, US$18,743,200 in 2024, and culminating in US$20,458,700 in 2025. This indicates a growing asset base over the latter portion of the analyzed timeframe.

Debt-to-Assets Ratio

The debt-to-assets ratio is not populated for the years 2021, 2022, and 2023. However, the ratio is available for 2024 and 2025. The ratio is not available for the earlier years, preventing a comprehensive trend analysis. The absence of debt figures for the initial period limits the ability to assess the company’s leverage position during those years. Without the debt values, it is impossible to determine the extent to which asset growth is financed by debt or retained earnings.

The increasing asset base suggests potential growth and expansion. However, a complete assessment of the company’s solvency position requires the inclusion of total debt figures for all periods. The lack of this information hinders a thorough understanding of the company’s financial risk and its ability to meet its long-term obligations.

The relationship between total debt, including operating lease liability, and total assets has remained remarkably stable over the observed five-year period. While both debt and assets have increased in absolute terms, the resulting ratio has remained consistent at approximately 0.01.

Total Debt (including operating lease liability)

Total debt exhibited an initial increase from US$87,000 thousand in 2021 to US$93,800 thousand in 2022. A slight decrease was then noted in 2023, with debt falling to US$89,800 thousand. However, a substantial increase is observed in 2024, reaching US$146,000 thousand, and continuing to rise to US$170,900 thousand in 2025. This suggests a more aggressive financing strategy in recent years.

Total Assets

Total assets decreased from US$13,555,000 thousand in 2021 to US$12,974,000 thousand in 2022. A significant recovery and subsequent growth is then apparent, with assets increasing to US$15,441,500 thousand in 2023, US$18,743,200 thousand in 2024, and finally reaching US$20,458,700 thousand in 2025. This indicates a period of asset accumulation and expansion.

Debt to Assets Ratio

Despite the fluctuations in both total debt and total assets, the debt to assets ratio has remained constant at 0.01 throughout the entire period. This indicates that the company’s leverage has not changed significantly, and that any increases in debt have been proportionally matched by increases in assets. The consistent ratio suggests a stable capital structure and a deliberate approach to financing growth.

The consistent debt to assets ratio, despite increasing absolute debt levels, implies that the company is effectively utilizing debt to finance asset growth. Further investigation into the specific assets acquired and the terms of the debt would provide a more comprehensive understanding of the company’s financial health.

An analysis of the provided financial information reveals a generally stable financial leverage position over the five-year period from December 31, 2021, to December 31, 2025. Total assets exhibited an increasing trend throughout the period, while stockholders’ equity also demonstrated growth, though with some fluctuation. The financial leverage ratio remained relatively consistent, indicating a steady reliance on financial obligations relative to equity.

Total Assets

Total assets decreased from US$13,555,000 thousand in 2021 to US$12,974,000 thousand in 2022. Subsequently, a consistent upward trend is observed, reaching US$15,441,500 thousand in 2023, US$18,743,200 thousand in 2024, and culminating at US$20,458,700 thousand in 2025. This suggests a period of asset accumulation following the initial decline.

Total Stockholders’ Equity

Total stockholders’ equity followed a similar pattern to total assets, decreasing from US$11,901,100 thousand in 2021 to US$11,041,900 thousand in 2022. An increase is then noted, rising to US$13,307,600 thousand in 2023, US$16,433,700 thousand in 2024, and US$17,824,000 thousand in 2025. The growth in equity contributes to the overall financial strength of the entity.

Financial Leverage

The financial leverage ratio experienced minor fluctuations throughout the period. It began at 1.14 in 2021, increased to 1.17 in 2022, then decreased slightly to 1.16 in 2023. A further decrease to 1.14 is observed in 2024, followed by a slight increase to 1.15 in 2025. These values indicate a relatively stable level of financial leverage, suggesting the entity consistently utilizes a similar proportion of debt financing relative to equity.

Overall, the observed trends suggest a company that is growing its asset base and equity while maintaining a consistent approach to financial leverage. The slight variations in the leverage ratio do not appear to indicate a significant shift in the company’s financing strategy.

The information presents trends in earnings before interest and tax (EBIT) from 2021 to 2025. Interest expense and the resulting interest coverage ratio are not populated within the provided information.

EBIT Trend

EBIT decreased from US$1,890.3 million in 2021 to US$1,606.8 million in 2022, representing a decline of approximately 15.0%. A subsequent increase was observed in 2023, with EBIT reaching US$1,958.9 million. This upward trend continued through 2024 and 2025, with EBIT increasing to US$2,673.8 million and US$3,311.4 million respectively. The period from 2022 to 2025 demonstrates a substantial overall increase in EBIT.

Without information on interest expense, a comprehensive assessment of the company’s ability to meet its interest obligations is not possible. The absence of interest expense figures prevents the calculation and analysis of the interest coverage ratio. Therefore, conclusions regarding the company’s solvency based on its ability to cover interest payments cannot be drawn from the current information.

Interest Coverage Ratio

The interest coverage ratio is not available for any of the reported years. This limits the ability to evaluate the company’s capacity to service its debt. A complete analysis would require the inclusion of annual interest expense figures.

Future analysis should include interest expense to provide a complete picture of the company’s solvency position and its ability to comfortably cover its interest obligations.

The company’s fixed charge coverage exhibited fluctuations over the five-year period. Earnings before fixed charges and taxes, the numerator in the calculation, demonstrated an initial decline followed by a consistent upward trajectory. Simultaneously, fixed charges, representing the company’s obligations requiring periodic payments, increased steadily throughout the period.

Earnings Before Fixed Charges and Tax

Earnings before fixed charges and tax decreased from US$1,910.7 million in 2021 to US$1,632.5 million in 2022, representing a decline of approximately 14.5%. However, subsequent years showed consistent growth, reaching US$1,985.7 million in 2023, US$2,707.7 million in 2024, and US$3,352.3 million in 2025. This indicates a strengthening ability to cover fixed obligations over the latter part of the analyzed period.

Fixed Charges

Fixed charges increased consistently from US$20.4 million in 2021 to US$40.9 million in 2025. This represents a cumulative increase of 100.5% over the five-year period. The consistent rise suggests an increasing level of financial obligations requiring periodic payments.

Fixed Charge Coverage Ratio

The fixed charge coverage ratio decreased significantly from 93.66 in 2021 to 63.52 in 2022, mirroring the decline in earnings before fixed charges and tax. The ratio then began to recover, increasing to 74.09 in 2023, 79.87 in 2024, and 81.96 in 2025. While the ratio experienced an initial setback, the subsequent increases suggest an improving capacity to meet fixed financial obligations. Despite the recovery, the ratio did not return to the level observed in 2021.

Overall, the company demonstrated a fluctuating but ultimately improving ability to cover its fixed charges. The initial decline in coverage was reversed by substantial growth in earnings, although fixed charge obligations also increased during the period. The upward trend in the fixed charge coverage ratio in the later years suggests a strengthening financial position with respect to fixed obligations.