Intuitive Surgical Inc. (NASDAQ:ISRG)

The solvency position, as indicated by the provided financial ratios, demonstrates a generally stable profile over the observed period spanning from March 31, 2022, to December 31, 2025. Financial leverage exhibits a modest fluctuation, remaining within a relatively narrow range throughout the analyzed timeframe.

Financial Leverage

Financial leverage began at 1.13 in March 2022 and gradually increased to 1.17 by December 2022. This represents a peak in leverage during the period. Subsequently, leverage decreased slightly to 1.16 in March 2023, before stabilizing around 1.17 for the subsequent three quarters. A downward trend is then observed, with leverage decreasing to 1.13 by March 2024. It remains relatively stable at 1.13 and 1.14 through December 2024, before increasing slightly to 1.15 by December 2025. The overall fluctuation remains contained, suggesting a consistent approach to financing.

The absence of values for Debt to Equity, Debt to Capital, and Debt to Assets limits a comprehensive assessment of the company’s solvency. However, the observed trend in financial leverage suggests that the company maintains a moderate level of debt relative to its equity and capital structure. The slight increase in leverage towards the end of the period warrants continued monitoring, though it does not appear to represent a significant shift in the company’s financial risk profile based solely on this metric.

In conclusion, the available solvency indicators suggest a stable financial structure with a consistent, moderate level of financial leverage. Further analysis incorporating the missing ratios would provide a more complete picture of the company’s solvency position.

An examination of the provided financial information reveals a consistent upward trend in total stockholders’ equity over the analyzed period, spanning from March 31, 2022, to December 31, 2025. The debt to equity ratio, however, is not fully populated, limiting a complete assessment of the company’s solvency position. Where available, the ratio demonstrates fluctuations, but generally remains low, suggesting a conservative capital structure.

Stockholders’ Equity Trend

Total stockholders’ equity began at 12,102,300 (in thousands of US dollars) as of March 31, 2022, and increased to 17,824,000 by December 31, 2025. This represents a substantial increase over the period, indicating retained earnings and/or equity issuances have contributed to growth in the equity base. The most significant increases occurred between September 30, 2023, and March 31, 2025.

Debt to Equity Ratio Analysis

The debt to equity ratio is absent for the majority of the observed period. This absence hinders a comprehensive solvency analysis. The lack of debt figures prevents calculation of the ratio for most quarters. Without consistent debt values, it is difficult to determine if the equity growth is being leveraged with debt or if the company is primarily funded by equity.

The observed increase in stockholders’ equity, coupled with the limited availability of debt information, suggests the company maintains a relatively strong equity position. However, a complete solvency assessment requires consistent debt figures to accurately calculate and analyze the debt to equity ratio over time. Further investigation into the reasons for the missing debt values is recommended.

Ratio Fluctuations (Limited View)

While a full trend is unavailable, the limited debt to equity ratio values suggest a low level of financial leverage. This indicates the company relies more on equity financing than debt financing. The absence of data for most periods prevents a detailed analysis of the relationship between debt and equity.

The Debt to Capital ratio exhibits a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While initial values are unavailable, a clear pattern emerges from the latter half of 2022 through 2025. The ratio demonstrates fluctuations but ultimately shows a significant rise, indicating a growing reliance on debt financing relative to total capital.

Initial Phase (Late 2022 - Early 2023)

From September 30, 2022, to March 31, 2023, the Debt to Capital ratio increased from 0.62 to 0.67. This suggests a moderate increase in debt levels or a contraction in total capital during this period.

Accelerated Increase (Mid 2023 - Early 2024)

A more pronounced increase is observed between June 30, 2023, and March 31, 2024, with the ratio climbing from 0.72 to 0.78. This indicates a more substantial shift towards debt financing or a more significant decrease in the capital base.

Continued Growth (2024)

Throughout 2024, the ratio continued its upward trajectory, reaching 0.85 by December 31, 2024. This consistent growth suggests a deliberate strategy to leverage debt or a continued decline in equity or other capital components.

Recent Fluctuations (2025)

The first half of 2025 shows a slight decrease to 0.81 by June 30, 2025, followed by a rebound to 0.84 by December 31, 2025. These fluctuations suggest potential adjustments in the capital structure, but the overall trend remains positive, indicating a continued, albeit potentially moderated, increase in debt relative to capital.

In summary, the Debt to Capital ratio demonstrates a clear upward trend over the analyzed timeframe. The rate of increase varies, with a notable acceleration in 2023 and 2024, followed by minor fluctuations in 2025. This suggests a growing reliance on debt financing as a component of the company’s capital structure.

An examination of the provided financial information reveals a generally increasing trend in total assets over the analyzed period, from March 31, 2022, through December 31, 2025. The debt to assets ratio, however, exhibits a more complex pattern, initially unavailable but becoming increasingly defined as the period progresses.

Debt to Assets Ratio - Overall Trend

The debt to assets ratio is not reported for the first three quarters of 2022. Beginning with December 31, 2022, the ratio is calculated and demonstrates a generally increasing trend through June 30, 2024. From June 30, 2024, to December 31, 2025, the ratio fluctuates, with a decrease observed in September 30, 2025, followed by a slight increase by the end of the period.

Debt to Assets Ratio - Specific Observations

The ratio increased from 0.08 in December 2022 to approximately 0.11 by June 2024. This suggests a relative increase in debt financing compared to asset growth during this period. The ratio peaked at 0.12 in December 2024 before decreasing to 0.10 in September 2025, and then rising slightly to 0.11 in December 2025. This fluctuation indicates potential shifts in the company’s capital structure or asset composition.

The observed increase in the debt to assets ratio through mid-2024 warrants further investigation to determine the reasons behind the increased leverage. The subsequent fluctuations suggest a dynamic approach to debt management, potentially influenced by investment opportunities or changes in financing conditions. The ratio remains relatively low throughout the analyzed period, indicating a conservative overall debt position despite the increasing trend.

Asset Growth and Ratio Impact

Total assets increased from $13,678,400 thousand in March 2022 to $20,458,700 thousand in December 2025, representing a substantial overall growth. The debt to assets ratio’s behavior is therefore viewed in the context of this significant asset expansion. While debt increased in absolute terms, the asset base grew at a faster rate initially, but the rate of asset growth slowed relative to debt in the period leading up to June 2024.

The financial leverage ratio for the analyzed period demonstrates a generally stable pattern with minor fluctuations. Initially, the ratio exhibits a slight increasing trend from March 31, 2022, to December 31, 2022, before stabilizing and then decreasing slightly towards the end of the observed timeframe.

Overall Trend

The financial leverage ratio generally remained between 1.13 and 1.17 throughout the period. This indicates a relatively consistent level of debt financing compared to equity. The ratio’s movement suggests a minor shift in the company’s capital structure over time, but not a dramatic one.

Initial Increase (Mar 31, 2022 – Dec 31, 2022)

From March 31, 2022 (1.13) to December 31, 2022 (1.17), the ratio increased by 0.04. This suggests a moderate increase in financial leverage during this period, potentially due to increased debt financing or a decrease in stockholders’ equity. However, the increase is incremental.

Stabilization and Slight Decrease (Dec 31, 2022 – Mar 31, 2025)

Following the peak in December 2022, the ratio stabilized around 1.16-1.17 for several quarters. A slight downward trend is then observed, reaching 1.12 by March 31, 2025. This indicates a potential reduction in reliance on debt financing or an increase in equity. The ratio then increases slightly to 1.15 by December 31, 2025.

Recent Period (Sep 30, 2024 – Dec 31, 2025)

In the most recent six quarters, the ratio has fluctuated between 1.14 and 1.15. This suggests a period of relative stability in the company’s financial leverage position. The slight increase in the final period may warrant further investigation to determine the underlying cause.

Overall, the observed financial leverage ratio suggests a moderate and relatively stable reliance on debt financing. The fluctuations within the period are minor and do not indicate a significant shift in the company’s capital structure.