Intuitive Surgical Inc. (NASDAQ:ISRG)

Net Fixed Asset Turnover

The net fixed asset turnover ratio displays a declining trend over the analyzed periods. Starting from 2.76, the ratio slightly increased to a peak of 3.16 before steadily decreasing each quarter to reach 1.82 by the most recent period. This consistent decline suggests a reduced efficiency in generating revenue from fixed assets, indicating potential underutilization or increased investment in fixed assets without proportional revenue growth.

Total Asset Turnover

The total asset turnover ratio exhibits a gradual upward trend initially, rising from 0.39 to 0.49 over several quarters. However, after reaching this peak, it slightly declines and stabilizes around 0.44 to 0.45 in the later periods. This pattern suggests improved overall asset utilization up to a point, followed by a plateau and minor reduction, which may indicate a maturation phase in asset use efficiency.

Equity Turnover

Equity turnover shows a pattern similar to total asset turnover. The ratio increases steadily from 0.45 to a high of 0.57, indicating enhanced activity in leveraging equity to generate revenue. Subsequently, a gentle decline commences, settling around 0.51 in the final quarters. This trend points to a peak in equity utilization efficiency followed by a modest tapering, possibly reflecting changes in capital structure or revenue generation capacity relative to equity.

Revenue Trends

The company's revenue displays a recurring seasonal pattern with some fluctuations each quarter. Initially, in early 2020, revenue declined from $1,099,500 thousand in March to $852,100 thousand in June but recovered in subsequent quarters, reaching $1,329,100 thousand by December 2020. A notable increase followed through 2021, where revenue peaked at $1,550,700 thousand in December. The growth trend continued into 2022 and 2023, reaching $1,925,300 thousand in December 2023, before accelerating strongly into 2024 with quarterly revenues climbing from $1,890,600 thousand in March to $2,413,500 thousand in December. The latest reported quarter in March 2025 shows a slight dip to $2,253,400 thousand but remains significantly higher compared to previous years.

Property, Plant, and Equipment (Net)

Net property, plant, and equipment steadily increased throughout the period analyzed, evidencing ongoing capital investments. Starting just above $1.369 billion in March 2020, the asset base consistently expanded each quarter, reaching nearly $2.988 billion by December 2023. This expansion continued through 2024, with values increasing from approximately $3.800 billion in June to about $4.646 billion in December, and further up to nearly $4.799 billion in the latest quarter, March 2025. The trend suggests sustained capital expenditures possibly aligned with growth strategies or capacity enhancement.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, available from September 2020 onwards, displays a declining trend over the period. Initially, the ratio rose from 2.76 in September 2020 to a peak of 3.16 in December 2020, indicating efficient use of fixed assets relative to revenue generated. However, beginning in 2021, the ratio progressively declined each quarter, moving down from 3.04 in March 2021 to 1.82 by December 2024. The ratio slightly rebounded to 1.82 in the latest quarter (March 2025). This decreasing turnover rate, concurrent with rising fixed assets and increasing revenue, may imply that while the asset base is expanding rapidly, revenue growth has not kept pace proportionally, leading to less efficient utilization of fixed assets.

Overall Insights

The financial data indicates robust growth in revenue alongside substantial investment in property, plant, and equipment. While total revenues more than doubled from early 2020 to late 2024, the expanding asset base grew at an even faster rate, as reflected in the declining fixed asset turnover ratio. This pattern may highlight a strategic emphasis on capacity building or upgrade of assets, potentially preparing for future growth despite the diminishing efficiency ratio in the short term. Monitoring the trajectory of this ratio relative to revenue will be crucial to assess ongoing operational efficiency and return on capital investments.

The revenue of the company demonstrates a general upward trend over the observed periods, with some volatility in specific quarters. Starting at approximately $1,099,500 thousand in March 2020, revenue dropped significantly in the following quarter but quickly recovered and exhibited steady growth through 2021 and 2022. The growth continued into 2023 and 2024, reaching a peak of $2,413,500 thousand in December 2024, before declining somewhat to $2,253,400 thousand in March 2025. This trend indicates a strong expansion in sales with some fluctuations likely due to seasonality or market conditions.

Total assets have consistently increased from $9,891,100 thousand in March 2020 to $19,220,400 thousand in March 2025. The growth in assets is relatively steady, reflecting ongoing investment and possibly expansions or acquisitions. The total asset base nearly doubled in this period, indicating the company has been significantly scaling its operations or investing in capital assets.

Total asset turnover ratios are only available from the third quarter of 2020. The ratio remained stable at 0.39 through Q3 and Q4 of 2020, indicating consistent usage of assets in generating revenue. From 2021 onward, the turnover ratio improved, reaching as high as 0.49 in March 2023, suggesting greater efficiency in asset utilization. Although the ratio shows a slight decline after this peak, falling to approximately 0.44-0.45 by early 2025, it remains higher than the initial values, indicating overall improved operational efficiency compared to the start of the period.

In summary, the financial data reveal robust revenue growth aligned with a near doubling of total assets over five years. This has been accompanied by an improvement in asset turnover ratios, pointing to increased efficiency in using assets to generate revenue. The slight decline in asset turnover ratios toward the end of the period may warrant monitoring to ensure continued operational effectiveness as the company scales.

Revenue Trend

Strong growth with occasional quarterly fluctuations; nearly doubled over five years.

Total Assets

Consistent increase, nearly doubling from under $10 billion to over $19 billion, suggesting expansion or capital investment.

Asset Turnover Ratio

Improved from 0.39 to a peak of 0.49, then declined slightly but remained above initial levels, indicating better asset utilization over time.

Revenue Trends

The revenue exhibits a generally upward trajectory over the observed periods, increasing from $1,099,500 thousand in March 2020 to reaching a peak of $2,413,500 thousand in December 2024, followed by a slight decrease to $2,253,400 thousand in March 2025. Initial quarters in 2020 show volatility, with a dip in June 2020 followed by recovery and growth through 2021. Post-2021, there is a steady and consistent growth pattern in revenue, with minor fluctuations in late 2023 and early 2025.

Total Stockholders’ Equity

The total stockholders' equity measured in thousands of US dollars demonstrates a steady increase from $8,506,700 thousand as of March 2020 to $17,106,400 thousand by March 2025. The growth is continuous without any significant reversals, though some deceleration is noted in the sequence between June 2022 and December 2022, where equity declines slightly before resuming an upward trend in 2023. This suggests ongoing capital accumulation or retained earnings, reflecting positive shareholder value development.

Equity Turnover Ratio Analysis

The equity turnover ratio, observable from September 2020 onwards, begins at 0.45 and shows a moderate increasing trend peaking at 0.57 by March 2023. After reaching this peak, the ratio experiences a gradual decline, stabilizing around 0.5 to 0.51 from late 2023 to early 2025. This indicates a period of improving efficiency in generating revenues from equity until early 2023, followed by a slight reduction in turnover effectiveness, potentially implying either slower revenue growth relative to equity or increased equity levels not immediately matched by revenue increases.

Overall Financial Insights

The data indicates a company exhibiting steady revenue growth and enhancing equity base across the five-year span, showing financial stability and expansion capacity. The rise in equity turnover ratio until early 2023 supports improved operational efficiency, while its subsequent slight decline calls for monitoring to maintain revenue growth relative to equity. The post-2023 revenue surge aligns with increasing equity, although equity turnover's moderation suggests a more cautious approach to leveraging shareholder equity for revenue generation going forward.