Intuitive Surgical Inc. (NASDAQ:ISRG)

Debt Ratios

The company's debt-related ratios, including debt to equity, debt to capital, and debt to assets, all maintain an extremely low and stable level of 0.01 across the five-year period from 2020 to 2024. This consistency indicates a minimal reliance on debt financing and suggests conservative financial management with very low financial risk associated with debt obligations. Including operating lease liabilities in these calculations does not materially alter the ratios, reinforcing the negligible impact of lease liabilities on overall leverage.

Financial Leverage

Financial leverage ratios remain relatively stable throughout the observed period, fluctuating slightly between 1.14 and 1.17. The lowest value recorded is 1.14 (in 2021 and 2024), and the highest is 1.17 (in 2022). This narrow range implies a consistent capital structure with limited use of debt or other leverage, further underscoring the company's conservative financial approach.

Interest and Fixed Charge Coverage

Interest coverage data is not available; however, fixed charge coverage ratios show variability over time. The coverage increased substantially from 58.48 in 2020 to a peak of 93.66 in 2021, representing a strong capacity to cover fixed obligations in that year. Subsequently, it declined to 63.52 in 2022 before recovering to 74.09 in 2023 and further rising to 79.87 in 2024. These fluctuations may reflect changes in operating earnings or fixed charges but generally indicate a strong ability to meet fixed financial commitments comfortably.

Overall Observations

The overall financial profile indicates a low-leverage entity with stable capital structure and strong fixed charge coverage. The company appears to prioritize financial stability and low debt exposure, which may reduce risk but potentially limits financial flexibility for expansion through debt financing. The stability in debt ratios alongside strong fixed charge coverage suggests conservative management and a solid capacity to meet ongoing financial obligations without strain.

The financial data over the reviewed period from 2020 to 2024 reveals noteworthy trends primarily concerning shareholders’ equity, as other metrics such as total debt and debt to equity ratio are absent or unreported.

Total Intuitive Surgical, Inc. stockholders’ equity (US$ in thousands)

The stockholders’ equity has demonstrated an overall upward trend throughout the period. Starting at approximately 9.73 billion in 2020, it increased significantly to about 11.90 billion in 2021. Though there was a slight decline in 2022 to approximately 11.04 billion, the equity recovered strongly in the following years, reaching 13.31 billion in 2023 and further growing to an estimated 16.43 billion by the end of 2024.

This pattern indicates a generally strengthening equity base, reflecting either retained earnings accumulation, equity injections, or asset revaluations contributing to shareholder value enhancement over the considered timeline. The dip in 2022 suggests a possible period of reduced profitability, dividend payments, share repurchases, or other equity reductions, but the subsequent rebound points to resilience and growth thereafter.

Due to the absence of data on total debt and the debt to equity ratio, it is not possible to assess the company’s leverage or capital structure risk or trends in this context.

Overall, the available data point to a solid improvement in the company's equity position with increasing shareholder investment or retained wealth over the five-year span.

Total Debt (including operating lease liability)

The total debt exhibited a general upward trend over the five-year period. Starting at $79,900 thousand in 2020, the debt increased steadily through 2021 and 2022, reaching $93,800 thousand. There was a slight decrease in 2023 to $89,800 thousand, followed by a pronounced increase to $146,000 thousand in 2024, marking the highest level in the observed period.

Total Stockholders’ Equity

The stockholders’ equity showed consistent growth annually, beginning at $9,731,500 thousand in 2020. It rose notably in 2021 to $11,901,100 thousand, then experienced a decrease in 2022 to $11,041,900 thousand. Subsequently, equity increased again in 2023 to $13,307,600 thousand and further to $16,433,700 thousand in 2024, indicating a strong overall upward trajectory despite the transient dip in 2022.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio remained remarkably stable at 0.01 throughout all five years. This consistency illustrates that despite increases in both debt and equity, the proportional relationship between total debt and stockholders’ equity has been maintained without substantial fluctuation.

Overall Analysis

The data reflects a company managing its financial structure prudently, with a low and stable debt to equity ratio suggesting a conservative approach to leveraging. The significant growth in stockholders’ equity relative to the increase in debt indicates strengthening capitalization. The noticeable spike in debt in the final year, while not significantly altering leverage ratios, may warrant closer examination to understand its drivers and implications for future financial strategy.

The financial data over the indicated periods reveals evolving capital structure dynamics, although some information remains unavailable. Total capital presents a clear upward trajectory, increasing steadily from approximately $9.73 billion in 2020 to roughly $16.43 billion by 2024. This growth suggests ongoing expansion or investment activities.

The absence of recorded total debt values across all periods prevents precise calculation and analysis of leverage via the debt to capital ratio. Consequently, it is not possible to assess the company's reliance on debt financing or changes in financial risk associated with debt levels.

Overall, the primary observable trend is a consistent and significant increase in total capital over the five-year span, indicating potential strengthening of the company’s equity base or accumulation of invested capital. The lack of debt data constitutes a limitation for a comprehensive assessment of the balance sheet and financial leverage.

Total Debt (including operating lease liability)

The total debt showed a rising trend from 2020 through 2024, increasing from $79,900 thousand in 2020 to $146,000 thousand in 2024. This represents an approximate 82.7% increase over the five-year period. Notably, there was a gradual increase from 2020 to 2022, followed by a slight decrease in 2023 before a significant jump in 2024.

Total Capital (including operating lease liability)

Total capital exhibited fluctuations with an overall upward trajectory. It increased from $9,811,400 thousand in 2020 to $11,988,100 thousand in 2021, then declined to $11,135,700 thousand in 2022. From 2022 onwards, there was a notable recovery and growth, reaching $16,579,700 thousand by 2024. The growth from 2022 to 2024 reflects a strong capital expansion during this period.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio remained consistently low and stable at 0.01 throughout the entire period from 2020 to 2024. Despite the increases observed in total debt and total capital, the ratio indicates that debt remains a very small portion of the overall capital structure. This suggests a conservative financial leverage stance with limited reliance on debt financing.

The data presents a partial view of the financial status over a five-year period. Total assets show a consistent growth trend from 2020 to 2024. Specifically, total assets increased from approximately 11.2 billion USD in 2020 to about 18.7 billion USD in 2024. This represents a growth of over 67% across the period, indicating a significant expansion of the company's asset base.

There is no reported data for total debt or the debt to assets ratio during the same period, which limits the ability to analyze leverage or capital structure changes. The absence of debt figures means it is not possible to assess the company's financial risk or its use of debt financing to support asset growth.

Overall, the observable data suggests a substantial growth in asset size, which may imply business expansion or increased investment. However, without debt information, further analysis of financial stability or leverage is constrained.

The financial data reveals several notable trends in the capital structure and asset growth over the five-year period.

Total debt (including operating lease liability)

The level of total debt shows a gradual increase from 79,900 thousand US dollars in 2020 to 93,800 thousand in 2022, reflecting a moderate rise. However, there is a slight decline in 2023 to 89,800 thousand, followed by a significant jump to 146,000 thousand in 2024. This last increase marks a substantial change in leverage approach or financing activity in the most recent year.

Total assets

Assets demonstrate consistent growth throughout the period, rising from 11,168,900 thousand US dollars in 2020 to 18,743,200 thousand in 2024. Despite a slight dip in 2022, the overall trend is strong and positive, with notable acceleration in asset accumulation particularly between 2023 and 2024.

Debt to assets ratio (including operating lease liability)

Despite increases in both debt and assets, the debt to assets ratio remains stable at approximately 0.01 across all years. This constancy suggests that debt is being managed proportionally to asset growth, maintaining a very low leverage level relative to total assets.

In summary, the entity has experienced robust asset growth accompanied by a measured increase in debt until 2023, followed by a pronounced rise in debt in 2024. Nevertheless, the overall capital structure remains conservatively leveraged, as indicated by the stable and very low debt-to-asset ratio. This pattern points to an ongoing strategy of asset expansion supported by manageable borrowing levels, keeping financial risk at a low level across the observed timeframe.

The financial data for Intuitive Surgical Inc. over the five-year period from 2020 to 2024 shows several notable trends and patterns in the company's asset base, equity, and leverage.

Total Assets

Total assets exhibited a rising trend overall, increasing from approximately $11.2 billion in 2020 to about $18.7 billion in 2024. There was a slight dip observed in 2022 when assets decreased to $12.9 billion from $13.6 billion in 2021, but this was followed by a significant recovery and further growth in the subsequent years. This pattern suggests periods of contraction and expansion in asset holdings, with a strong accumulation of assets by the end of 2024.

Total Stockholders’ Equity

Stockholders' equity also grew considerably, rising from around $9.7 billion in 2020 to approximately $16.4 billion in 2024. Similar to total assets, equity experienced a decline in 2022, dropping from $11.9 billion in 2021 to $11.0 billion, before regaining momentum and increasing substantially thereafter. This indicates that the company’s net worth increased progressively despite temporary setbacks, reflecting either retained earnings growth, successful capital management, or additional equity issuance in later years.

Financial Leverage

Financial leverage remained relatively stable and low throughout the period, fluctuating narrowly between a ratio of 1.14 and 1.17. This consistency indicates a stable financing structure with moderate reliance on debt relative to equity. The relatively low leverage ratio suggests a conservative approach to financial risk, maintaining a strong equity base compared to liabilities.

In summary, the company demonstrated consistent growth in both assets and equity from 2020 to 2024, with a temporary contraction evident in 2022. Despite these fluctuations, the financial leverage ratio remained steady, pointing to prudent financial management and a balanced capital structure over the analyzed timeframe.

Earnings before interest and tax (EBIT)

The EBIT demonstrates a generally positive trend over the five-year period, rising from $1,207,000 thousand in 2020 to $2,673,800 thousand in 2024. There is a marked increase in 2021 to $1,890,300 thousand, followed by a slight decline in 2022 to $1,606,800 thousand. However, EBIT recovered in 2023, reaching $1,958,900 thousand and then substantially increased in 2024, showing strong profitability growth.

Interest expense

No data is available for interest expense throughout the period, indicating either an absence of interest costs or undisclosed figures.

Interest coverage

Interest coverage ratios are not reported for any of the years, which limits the ability to assess the company's capacity to cover interest obligations through operating earnings.

The financial data reveals several notable trends over the five-year period ending December 31, 2024.

Earnings before fixed charges and tax

This metric exhibits volatility with an overall upward trend. After rising significantly from 1,228,000 thousand US dollars in 2020 to a peak of 1,910,700 thousand US dollars in 2021, earnings declined to 1,632,500 thousand US dollars in 2022. Subsequently, they recovered to 1,985,700 thousand US dollars in 2023 and achieved a substantial increase to 2,707,700 thousand US dollars in 2024, marking the highest value in the period.

Fixed charges

Fixed charges show a gradual increase throughout the period. Starting at 21,000 thousand US dollars in 2020, they remained relatively stable in 2021 at 20,400 thousand US dollars, then increased consistently in the following years to reach 33,900 thousand US dollars in 2024. This upward movement indicates growing fixed financial obligations.

Fixed charge coverage ratio

The fixed charge coverage ratio displays considerable fluctuations. It was exceptionally high at 58.48 in 2020 and surged to an even higher level of 93.66 in 2021. The ratio declined markedly to 63.52 in 2022, followed by moderate improvements in 2023 (74.09) and 2024 (79.87). Despite the decline after 2021, the coverage ratio remains well above typical benchmarks, suggesting strong ability to cover fixed charges with earnings throughout the period.

Overall, the data indicates that earnings before fixed charges and tax experienced variability but with strong growth by the end of the period. Fixed charges have gradually increased, which could imply higher debt or lease obligations. The fixed charge coverage ratio's high values across all years reflect a solid capacity to meet fixed financial obligations, despite some fluctuation after 2021. The upward trajectory in earnings combined with manageable growth in fixed charges portrays a generally improving financial position relative to fixed cost coverage.