Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
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Profitability Ratios (Summary)
Intuitive Surgical Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a period of fluctuation followed by improvement. Initial declines in key margins between 2021 and 2022 were partially recovered in subsequent years, with 2023 showing stabilization and 2024 and 2025 exhibiting positive trends. Overall, the company demonstrates a consistently profitable profile, though with some volatility in operational efficiency.
- Gross Profit Margin
- The gross profit margin experienced a decrease from 69.32% in 2021 to 67.44% in 2022, followed by a further decline to 66.39% in 2023. A slight recovery to 67.46% occurred in 2024, but this was followed by a decrease to 66.00% in 2025. This suggests potential pressures on cost of goods sold or pricing strategies.
- Operating Profit Margin
- The operating profit margin showed a more pronounced decline from 31.89% in 2021 to 25.35% in 2022. It remained relatively stable at 24.80% in 2023 before increasing to 28.12% in 2024 and further to 29.27% in 2025. This indicates improved operational efficiency and cost control in the later periods.
- Net Profit Margin
- Similar to the operating margin, the net profit margin decreased from 29.85% in 2021 to 21.25% in 2022. A recovery began in 2023, reaching 25.24%, and continued through 2024 (27.81%) and 2025 (28.38%). This suggests that improvements in operational performance are translating to bottom-line profitability.
- Return on Equity (ROE)
- Return on equity followed a similar pattern to the profit margins, declining from 14.32% in 2021 to 11.98% in 2022. It then increased steadily to 13.51% in 2023, 14.13% in 2024, and 16.02% in 2025, indicating increasing efficiency in generating profits from shareholder investments.
- Return on Assets (ROA)
- The return on assets also decreased from 12.58% in 2021 to 10.19% in 2022, before recovering to 11.64% in 2023, 12.39% in 2024, and 13.96% in 2025. This demonstrates improved efficiency in utilizing assets to generate earnings, mirroring the trends observed in ROE.
In summary, the period began with a decline in profitability across all measured ratios. However, a clear upward trend emerges from 2023 onwards, suggesting successful implementation of strategies to improve operational efficiency and overall profitability. The increasing ROE and ROA indicate a more effective use of both equity and assets in generating returns.
Return on Sales
Return on Investment
Gross Profit Margin
Intuitive Surgical Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally stable pattern over the five-year period, with some fluctuation. While initially decreasing, it demonstrated a degree of recovery before stabilizing at a slightly lower level than the beginning of the period. Gross profit increased consistently year-over-year, while revenue also showed consistent growth, influencing the observed margin behavior.
- Gross Profit Margin Trend
- The gross profit margin began at 69.32% in 2021. A decrease was observed in 2022 to 67.44%, followed by a further decline to 66.39% in 2023. The margin then increased slightly in 2024 to 67.46%, before decreasing again to 66.00% in 2025. This suggests some volatility in the cost of goods sold relative to revenue.
- Gross Profit Growth
- Gross profit increased from US$3,958,500 thousand in 2021 to US$6,642,300 thousand in 2025, representing a cumulative growth of approximately 67.7%. The largest year-over-year increase occurred between 2023 and 2024, with an increase of US$904,700 thousand.
- Revenue Growth
- Revenue also demonstrated consistent growth, rising from US$5,710,100 thousand in 2021 to US$10,064,700 thousand in 2025, a cumulative increase of approximately 76.2%. Similar to gross profit, the most substantial year-over-year revenue growth occurred between 2023 and 2024, increasing by US$1,227,900 thousand.
The consistent growth in both gross profit and revenue indicates a healthy business trajectory. However, the slight downward trend in the gross profit margin, despite increasing gross profit, warrants further investigation into potential cost pressures or pricing dynamics. The stabilization of the margin in the later years suggests these factors may be reaching a new equilibrium.
Operating Profit Margin
Intuitive Surgical Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited fluctuations over the five-year period. Initial performance showed a decline followed by a recovery and subsequent growth. Income from operations increased overall, but not consistently year-over-year, impacting the operating profit margin.
- Operating Profit Margin Trend
- The operating profit margin began at 31.89% in 2021. A decrease was observed in 2022, falling to 25.35%. This downward trend continued, albeit at a slower pace, with a margin of 24.80% reported in 2023. A recovery commenced in 2024, with the margin increasing to 28.12%. This positive momentum continued into 2025, reaching 29.27%.
- Relationship to Revenue
- Revenue demonstrated consistent growth throughout the period, increasing from US$5,710.1 million in 2021 to US$10,064.7 million in 2025. While revenue growth was consistent, the operating profit margin did not mirror this pattern identically. The initial decline in margin suggests that revenue growth was not translating directly into proportional profit growth, potentially due to increased operating expenses. The subsequent margin improvement indicates improved operational efficiency or pricing power as revenue continued to rise.
- Income from Operations
- Income from operations increased from US$1,821.0 million in 2021 to US$2,945.5 million in 2025. However, the year-over-year changes were not uniform. A decrease was noted between 2021 and 2022, followed by increases in 2023 and substantial growth in both 2024 and 2025. This variability in income from operations directly influenced the fluctuations in the operating profit margin.
The operating profit margin’s performance suggests a period of initial challenges followed by a strengthening of operational profitability as revenue scaled. The company demonstrated an ability to improve its margin despite significant revenue growth, indicating effective cost management or pricing strategies in the later years of the observed period.
Net Profit Margin
Intuitive Surgical Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Profit Margin, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the five-year period. Initial observations reveal a decrease followed by a recovery and stabilization towards the end of the analyzed timeframe.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 29.85%. A notable decline was observed in 2022, with the margin decreasing to 21.25%. Subsequently, the margin began to recover, increasing to 25.24% in 2023. This upward trend continued into 2024, reaching 27.81%, and further improved to 28.38% in 2025. This indicates a strengthening of profitability as a percentage of revenue in the later years of the period.
The decrease in net profit margin in 2022 suggests potential increases in the cost of revenue or operating expenses relative to revenue. The subsequent recovery in 2023, 2024, and 2025 indicates successful cost management or increased pricing power, or a combination of both. The stabilization around 28% in the final two years suggests a mature and consistent profitability level.
- Relationship to Revenue
- While the net profit margin fluctuated, revenue consistently increased throughout the period. The initial decline in margin did not prevent revenue growth, and the subsequent margin improvement coincided with accelerating revenue increases. This suggests that the company was able to maintain growth even during periods of lower profitability and capitalize on opportunities as profitability improved.
The observed trend in net profit margin, coupled with consistent revenue growth, suggests a generally healthy financial performance. The company demonstrated resilience in recovering from a temporary dip in profitability and ultimately achieved a stable and relatively high net profit margin.
Return on Equity (ROE)
Intuitive Surgical Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | ||||||
| Total Intuitive Surgical, Inc. stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROE, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a fluctuating pattern over the five-year period. Net income attributable to Intuitive Surgical, Inc. and Total Intuitive Surgical, Inc. stockholders’ equity both influenced the observed ROE trends.
- Overall Trend
- The ROE initially decreased, then stabilized, and ultimately increased over the observed period. Starting at 14.32% in 2021, the ROE declined to 11.98% in 2022. A recovery began in 2023, with the ROE reaching 13.51%, followed by a further increase to 14.13% in 2024. The most significant increase occurred between 2024 and 2025, with the ROE rising to 16.02%.
- Net Income Impact
- Net income attributable to Intuitive Surgical, Inc. decreased from US$1,704.6 million in 2021 to US$1,322.3 million in 2022, contributing to the initial decline in ROE. Subsequently, net income increased to US$1,798.0 million in 2023, US$2,322.6 million in 2024, and further to US$2,856.0 million in 2025. This consistent growth in net income positively influenced the upward trend in ROE observed from 2023 onwards.
- Stockholders’ Equity Impact
- Total Intuitive Surgical, Inc. stockholders’ equity decreased from US$11,901.1 million in 2021 to US$11,041.9 million in 2022, partially offsetting the impact of declining net income on ROE in 2022. Equity then increased significantly, reaching US$13,307.6 million in 2023, US$16,433.7 million in 2024, and US$17,824.0 million in 2025. This growth in equity, while contributing to higher overall value, moderated the ROE increase compared to what would have been observed with a stable equity base.
The combined effect of increasing net income and growing stockholders’ equity resulted in a notable improvement in ROE by the end of the period. The increase in ROE from 2024 to 2025 was particularly pronounced, suggesting improved efficiency in generating profits from shareholder investments.
Return on Assets (ROA)
Intuitive Surgical Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a fluctuating pattern over the five-year period. Initial observations indicate a decrease followed by a consistent upward trajectory.
- Overall Trend
- The ROA decreased from 12.58% in 2021 to 10.19% in 2022. Subsequently, the ROA demonstrated a consistent increase, reaching 11.64% in 2023, 12.39% in 2024, and culminating at 13.96% in 2025. This suggests improving efficiency in utilizing assets to generate profit over the latter part of the analyzed period.
- Year-over-Year Changes
- The most significant decrease occurred between 2021 and 2022, with a decline of 2.39 percentage points. Conversely, the largest year-over-year increase was observed between 2024 and 2025, with an increase of 1.57 percentage points. The increases from 2022 to 2023 and 2023 to 2024 were more moderate, at 1.45 and 1.20 percentage points respectively.
- Relationship to Net Income and Total Assets
- The decrease in ROA in 2022 coincided with a decrease in net income attributable to the company, while total assets also experienced a slight reduction. The subsequent increases in ROA align with the increases in net income observed in 2023, 2024, and 2025. Total assets increased consistently throughout the period, but the growth in net income outpaced the growth in assets, contributing to the rising ROA.
In conclusion, while a temporary dip in ROA was present in 2022, the overall trend indicates a strengthening ability to generate earnings from its asset base.