Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
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Long-term Activity Ratios (Summary)
Intuitive Surgical Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals several notable trends in asset utilization and efficiency metrics.
- Net Fixed Asset Turnover
- This ratio shows a declining trend from 2.76 in 2020 to 1.80 in 2024, indicating a decrease in how efficiently the net fixed assets generate revenue. The sharpest declines occur from 2022 onward, reflecting potential challenges in asset productivity or increasing asset base not yet fully leveraged for revenue generation.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similarly, when considering operating leases and right-of-use assets, this turnover ratio also decreases from 2.66 in 2020 to 1.75 in 2024. This parallel trend suggests that lease assets are proportionally contributing to the decline in turnover efficiency, indicating a broader issue with fixed asset utilization.
- Total Asset Turnover
- The total asset turnover ratio exhibits a slight improvement from 0.39 in 2020 to a peak of 0.48 in 2022, followed by a modest decline to 0.45 by 2024. This indicates an initial improvement in using total assets to generate revenue, but with some reduction in efficiency in the latter years, which may be related to the asset turnover trends observed in fixed assets.
- Equity Turnover
- Equity turnover shows a consistent increase from 0.45 in 2020 to 0.56 in 2022, suggesting improved efficiency in generating sales from shareholders' equity. However, this metric slightly decreases to 0.51 by 2024, hinting at a reduced pace in equity efficiency but still remaining above the 2020 level.
Overall, the data indicates a declining efficiency in fixed asset utilization, particularly apparent after 2021, while total asset and equity turnover ratios suggest relatively stable or slightly improved efficiency with some recent decreases. These patterns may point to changes in asset structure, investment strategies, or market conditions impacting the company’s operational efficiency.
Net Fixed Asset Turnover
Intuitive Surgical Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property, plant, and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant, and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue exhibits a consistent upward trend over the analyzed five-year period. Starting at approximately 4.36 billion in 2020, revenue increased to about 5.71 billion in 2021, followed by continued growth to 6.22 billion in 2022. The upward momentum accelerated in the subsequent years, reaching approximately 7.12 billion in 2023 and further increasing to 8.35 billion by the end of 2024. This reflects a strong and steady expansion in sales or service delivery.
- Property, Plant, and Equipment, Net
- Net fixed assets showed significant growth during the same period. Beginning at roughly 1.58 billion in 2020, the asset base expanded to 1.88 billion in 2021, then substantially increased to 2.37 billion in 2022. The increase became more pronounced in the later years, reaching 3.54 billion in 2023 and nearly 4.65 billion by the end of 2024. This suggests considerable investment in long-term physical assets, possibly indicating capacity expansion or modernization efforts.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a declining trend throughout the period reviewed. Initially, the ratio was 2.76 in 2020 and slightly improved to 3.04 in 2021. However, from 2022 onwards, the ratio declined progressively to 2.62, then 2.01 in 2023, and further down to 1.8 by 2024. This decline indicates that the company is generating less revenue per unit of fixed assets over time, which may reflect either increased investment in assets ahead of returning revenue growth or decreasing efficiency in asset utilization.
- Overall Insights
- The data indicates a pattern of robust revenue growth accompanied by substantial capital investment in fixed assets. However, the declining net fixed asset turnover ratio suggests that the increased investment in property, plant, and equipment has not yet translated proportionally into higher revenue generation efficiency. This could be characteristic of a growth phase where capital expenditures are front-loaded relative to revenue realization, or it might signal a need to assess asset utilization strategies to improve efficiency going forward.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Intuitive Surgical Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property, plant, and equipment, net | ||||||
| Operating lease right-of-use assets (reported as Intangible and other assets, net) | ||||||
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals a strong upward trend in revenue, with consistent annual growth over the five-year period. Revenue increased from approximately 4.36 billion US dollars in 2020 to 8.35 billion US dollars in 2024, indicating more than a 90% overall rise. This demonstrates significant expansion in the company’s sales and market demand.
Simultaneously, there is a marked increase in property, plant, and equipment (PPE) net values, including operating lease right-of-use assets. The net PPE grew from about 1.64 billion US dollars in 2020 to 4.78 billion US dollars in 2024, nearly tripling over the period. This substantial investment in fixed assets suggests an ongoing strategy to support growth through capacity expansion or modernization of facilities.
Conversely, the net fixed asset turnover ratio, which measures revenue generated per dollar of net fixed assets, shows a declining trend. It decreased from 2.66 in 2020 to 1.75 in 2024. Despite higher asset levels contributing to increased revenue, this ratio's reduction indicates that revenue generation per unit of fixed asset investment has weakened over time. This could imply diminishing efficiency in asset utilization or the initial phase of newly acquired assets not yet producing their full revenue potential.
- Revenue
- Strong and steady increase, nearly doubling over five years, signaling robust growth.
- Property, Plant, and Equipment
- Significant capital investment, with net assets almost tripling, reflecting expansion efforts.
- Net Fixed Asset Turnover Ratio
- Declining trend, suggesting reduced efficiency or lag in revenue generation relative to asset increase.
Total Asset Turnover
Intuitive Surgical Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's performance over the five-year period from 2020 to 2024.
- Revenue
- Revenue demonstrates a consistent upward trajectory throughout the period. Starting at approximately 4.36 billion US dollars in 2020, it increases each year, reaching about 8.35 billion US dollars in 2024. This exhibits strong and sustained growth in the company's ability to generate sales, with the most substantial increments occurring in the later years, indicating accelerating revenue expansion.
- Total Assets
- Total assets show a generally increasing pattern, with some fluctuations. Beginning at roughly 11.17 billion US dollars in 2020, the asset base rises to about 13.55 billion in 2021 but then dips slightly to approximately 12.97 billion in 2022. After this dip, total assets increase significantly, reaching 15.44 billion in 2023 and continuing upward to 18.74 billion in 2024. This pattern suggests active asset management with possible divestitures or asset revaluation in 2022, followed by aggressive asset accumulation or investment afterward.
- Total Asset Turnover
- The total asset turnover ratio, which indicates how efficiently the company utilizes its assets to generate revenue, improves from 0.39 in 2020 to a peak of 0.48 in 2022. However, after 2022, the ratio declines slightly to 0.46 in 2023 and further to 0.45 in 2024. While the company maintained a generally efficient use of assets, the slight decline in recent years suggests that asset growth may be outpacing revenue increases, potentially indicating diminishing returns on new investments or changes in asset composition.
Overall, the company experiences robust revenue growth accompanied by a significant expansion of its asset base. The efficiency of asset utilization improves initially but shows some moderation in later years. These trends highlight strong operational growth and sizeable capital deployment, with some indications of evolving asset productivity that may warrant further attention.
Equity Turnover
Intuitive Surgical Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total Intuitive Surgical, Inc. stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Revenue ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The data reveals several notable trends in the financial performance and position over the five-year period analyzed.
- Revenue
- There is a consistent upward trend in revenue from 2020 to 2024. Revenue increased from $4,358,400 thousand in 2020 to $8,352,100 thousand in 2024, showing steady growth each year. This reflects a compounded increase of nearly 92% over the five years, indicating robust expansion in sales or service volume.
- Total Stockholders’ Equity
- Total equity increased from $9,731,500 thousand in 2020 to $16,433,700 thousand in 2024, showing significant growth in the company’s net assets. The increase is not as smooth as revenue growth, with a slight decline noted in 2022 compared to 2021, but the general trend is upward. The equity growth suggests reinvested earnings or additional capital contributions supporting the company’s financial foundation.
- Equity Turnover
- The equity turnover ratio shows some variability but remains relatively stable within the range of 0.45 to 0.56. The ratio improves from 0.45 in 2020 to a peak of 0.56 in 2022, indicating that the company was utilizing its equity more efficiently to generate revenue during that period. However, in subsequent years, this efficiency slightly decreases to 0.51 by 2024, which could be attributed to faster growth in equity compared to revenue growth in those years.
Overall, the financial data suggests that the company has experienced strong revenue growth supported by increasing equity levels. The equity turnover ratio implies that although equity has grown significantly, its conversion into revenue has varied, peaking around 2022 and then moderating. These patterns may reflect strategic investments boosting equity, with revenue gains progressively following.