Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Intuitive Surgical Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin showed variability over the period, starting at 65.65% in 2020 and increasing to a peak of 69.32% in 2021. This was followed by a decline to 67.44% in 2022 and a slight further decrease to 66.39% in 2023. However, the margin recovered moderately to 67.46% by 2024. Overall, the margin maintained a relatively high level, indicating sustained efficiency in production and pricing strategies despite some fluctuations.
- Operating Profit Margin
- The operating profit margin exhibited notable fluctuations. It rose significantly from 24.09% in 2020 to a high of 31.89% in 2021, reflecting improved operational efficiency or cost control. Subsequently, it declined sharply to 25.35% in 2022 and remained relatively stable in 2023 at 24.8%. A recovery was observed in 2024 with the margin increasing to 28.12%. These shifts suggest varying operational performance and potential changes in expense management across the years.
- Net Profit Margin
- The net profit margin paralleled the trends seen in operating margin, starting at 24.33% in 2020 and rising to 29.85% in 2021. A pronounced decrease followed, with the margin dropping to 21.25% in 2022. Improvement occurred in 2023, bringing the margin up to 25.24%, and further increased to 27.81% in 2024. These changes indicate fluctuations in overall profitability, possibly influenced by non-operating items, taxes, or financing costs.
- Return on Equity (ROE)
- Return on equity demonstrated a positive trend with some volatility. The ROE increased from 10.9% in 2020 to 14.32% in 2021, then decreased to 11.98% in 2022. It rebounded to 13.51% in 2023 and climbed further to 14.13% in 2024. This pattern indicates enhanced shareholder value creation in 2021, a subsequent decline, and then gradual recovery, reflecting the company's ability to generate profits from shareholder investments despite annual variations.
- Return on Assets (ROA)
- The return on assets followed a similar trajectory to ROE, increasing from 9.5% in 2020 to 12.58% in 2021. It then declined to 10.19% in 2022, before rising again to 11.64% in 2023 and reaching 12.39% in 2024. This indicates an overall improvement in asset utilization efficiency over the five-year span, with occasional dips that may correlate with changes in asset base or operational effectiveness.
Return on Sales
Return on Investment
Gross Profit Margin
Intuitive Surgical Inc., gross profit margin 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) | ||||||
| Gross profit | 5,634,200) | 4,729,500) | 4,196,000) | 3,958,500) | 2,861,200) | |
| Revenue | 8,352,100) | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 67.46% | 66.39% | 67.44% | 69.32% | 65.65% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 50.93% | 50.28% | 51.54% | 52.21% | 50.49% | |
| Elevance Health Inc. | 15.92% | 16.79% | 16.79% | 17.09% | 19.71% | |
| Medtronic PLC | 65.34% | 65.67% | 67.98% | 65.19% | 67.41% | |
| UnitedHealth Group Inc. | 21.31% | 23.64% | 24.09% | 23.60% | 25.62% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 5,634,200 ÷ 8,352,100 = 67.46%
2 Click competitor name to see calculations.
- Revenue
- The revenue shows a consistent upward trend over the five-year period from 2020 to 2024. It increased from approximately $4.36 billion in 2020 to about $8.35 billion in 2024, indicating strong and sustained business growth. The growth appears steady with no year showing a decline, suggesting successful expansion or increased demand for the company's products or services.
- Gross Profit
- Gross profit mirrored the positive trend seen in revenue, rising from roughly $2.86 billion in 2020 to $5.63 billion in 2024. This increase demonstrates the company's ability to generate higher absolute profitability as revenue grows, reflecting effective cost management and scalability in operations.
- Gross Profit Margin
- The gross profit margin experienced some fluctuations but remained relatively stable over the period. It increased from 65.65% in 2020 to 69.32% in 2021, then dipped slightly in subsequent years before stabilizing around 67.46% in 2024. This pattern suggests that while the company improved efficiency in the earlier years, it faced some margin pressure afterward but managed to maintain a strong and healthy margin overall.
- Overall Insights
- The data indicates robust growth in both revenue and gross profit, signaling strong operational performance and market demand. The gross profit margin stability around the mid to high 60 percent range confirms ongoing cost control and pricing strength. The company's financial performance over these five years reflects effective strategies in scaling business and maintaining profitability amid increasing revenue volumes.
Operating Profit Margin
Intuitive Surgical Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 2,348,900) | 1,766,800) | 1,577,100) | 1,821,000) | 1,049,800) | |
| Revenue | 8,352,100) | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 28.12% | 24.80% | 25.35% | 31.89% | 24.09% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 16.27% | 16.15% | 19.16% | 19.56% | 15.48% | |
| Elevance Health Inc. | 4.16% | 4.47% | 4.94% | 5.15% | 4.97% | |
| Medtronic PLC | 15.89% | 17.56% | 18.15% | 14.89% | 16.57% | |
| UnitedHealth Group Inc. | 8.17% | 8.80% | 8.83% | 8.40% | 8.76% | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 8.25% | 8.71% | 9.26% | 9.13% | 8.91% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 12.50% | 12.79% | 18.74% | 18.04% | 13.65% | |
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
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 2,348,900 ÷ 8,352,100 = 28.12%
2 Click competitor name to see calculations.
- Revenue Growth
- The revenue exhibits a consistent upward trajectory over the five-year period. Starting at approximately $4.36 billion in 2020, it increases to $5.71 billion in 2021, followed by further growth to $6.22 billion in 2022, $7.12 billion in 2023, and reaching $8.35 billion in 2024. This reflects a sustained expansion in sales and market demand.
- Income from Operations
- Income from operations shows variability but generally trends upward. It begins at roughly $1.05 billion in 2020, rises sharply to $1.82 billion in 2021, then declines to $1.58 billion in 2022. It recovers to $1.77 billion in 2023, followed by a significant increase to $2.35 billion in 2024. The fluctuations indicate periods of operational efficiency changes or cost variations.
- Operating Profit Margin
- The operating profit margin demonstrates some fluctuations while maintaining strong performance levels. It starts at 24.09% in 2020 and climbs to a peak of 31.89% in 2021, implying improved operational leverage that year. Subsequently, the margin decreases to 25.35% in 2022 and stabilizes near this level at 24.8% in 2023 before rising again to 28.12% in 2024. These shifts suggest varying cost management effectiveness and profitability relative to revenue.
- Overall Financial Performance Insights
- The overall financial data indicates a robust revenue growth accompanied by operational income growth, albeit with some volatility in profitability margins. The peak margin in 2021 signifies an optimized cost structure or pricing strategy, while the subsequent decline could reflect increased expenses or competitive pressures. The rebound in 2024’s margin suggests a potential improvement in operational efficiency or product mix. The data signals a generally healthy financial status with an emphasis on maximizing profitability alongside expanding revenue.
Net Profit Margin
Intuitive Surgical Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 2,322,600) | 1,798,000) | 1,322,300) | 1,704,600) | 1,060,600) | |
| Revenue | 8,352,100) | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 27.81% | 25.24% | 21.25% | 29.85% | 24.33% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 31.95% | 14.27% | 15.88% | 16.42% | 12.99% | |
| Elevance Health Inc. | 3.41% | 3.52% | 3.87% | 4.46% | 3.78% | |
| Medtronic PLC | 11.36% | 12.03% | 15.90% | 11.97% | 16.56% | |
| UnitedHealth Group Inc. | 3.65% | 6.09% | 6.25% | 6.06% | 6.03% | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.09% | 6.43% | 7.05% | 7.14% | 6.82% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 8.84% | 11.49% | 14.65% | 15.24% | 10.27% | |
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 profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 2,322,600 ÷ 8,352,100 = 27.81%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrates a consistent upward trajectory over the five-year period. The company’s revenue increased from 4,358,400 thousand US dollars in 2020 to 8,352,100 thousand US dollars in 2024. This growth indicates a steady expansion of business operations and market demand.
- Net Income Analysis
- Net income attributable to the company showed a generally increasing trend with some fluctuations. It rose substantially from 1,060,600 thousand US dollars in 2020 to 1,704,600 thousand in 2021, followed by a decline to 1,322,300 thousand in 2022. Thereafter, net income rebounded, reaching 1,798,000 thousand in 2023 and further growing to 2,322,600 thousand in 2024. These fluctuations suggest variability in profitability despite overall gains.
- Net Profit Margin Development
- The net profit margin experienced variations during the period. It peaked at 29.85% in 2021, then fell to 21.25% in 2022, before recovering to 25.24% in 2023 and further improving to 27.81% in 2024. This pattern indicates challenges in maintaining profitability ratios, possibly due to changes in cost structure or pricing strategies, but with signs of improved margins in the later years.
- Overall Observations
- The data reflects a company achieving significant revenue growth while managing profitability with some inconsistencies. The initial dip in net profit margin and net income in 2022 suggests a period of operational or market challenges, yet the recovery in subsequent years signals effective strategic responses. The consistent increase in revenue together with the rebound in profit metrics through 2024 points to strengthening financial health and operational efficiency.
Return on Equity (ROE)
Intuitive Surgical Inc., ROE 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) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 2,322,600) | 1,798,000) | 1,322,300) | 1,704,600) | 1,060,600) | |
| Total Intuitive Surgical, Inc. stockholders’ equity | 16,433,700) | 13,307,600) | 11,041,900) | 11,901,100) | 9,731,500) | |
| Profitability Ratio | ||||||
| ROE1 | 14.13% | 13.51% | 11.98% | 14.32% | 10.90% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 28.12% | 14.83% | 18.90% | 19.75% | 13.71% | |
| Elevance Health Inc. | 14.47% | 15.23% | 16.59% | 16.93% | 13.77% | |
| Medtronic PLC | 7.32% | 7.30% | 9.59% | 7.01% | 9.44% | |
| UnitedHealth Group Inc. | 15.55% | 25.22% | 25.87% | 24.09% | 23.52% | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 16.02% | 17.13% | 18.40% | 17.28% | 15.80% | |
| ROE, Industry | ||||||
| Health Care | 15.74% | 19.40% | 24.82% | 25.44% | 16.70% | |
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
ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 2,322,600 ÷ 16,433,700 = 14.13%
2 Click competitor name to see calculations.
The financial data reveals significant movements in net income, stockholders’ equity, and return on equity (ROE) over the five-year period examined.
- Net Income
- Net income attributable to Intuitive Surgical, Inc. demonstrated considerable fluctuation. Starting at approximately $1,060,600 thousand in 2020, it increased sharply to $1,704,600 thousand in 2021. However, in 2022, net income declined to $1,322,300 thousand before rising again in 2023 to $1,798,000 thousand, and further increasing to $2,322,600 thousand in 2024. This intermittent pattern suggests periods of both strong growth and temporary contraction, with an overall upward trajectory by the end of the period.
- Total Stockholders’ Equity
- Total stockholders’ equity followed a broadly upward trend, starting from $9,731,500 thousand in 2020 and rising to $11,901,100 thousand in 2021. In 2022, equity decreased to $11,041,900 thousand, exhibiting a dip similar to that seen in net income. Subsequently, it grew appreciably to $13,307,600 thousand in 2023 and further to $16,433,700 thousand in 2024. This progression indicates increasing shareholder value over time, with a temporary decline in 2022.
- Return on Equity (ROE)
- ROE values reflected the changes in profitability relative to equity. Beginning at 10.9% in 2020, ROE increased to a peak of 14.32% in 2021, then decreased to 11.98% in 2022, mirroring the reductions in net income and equity in the same year. Following this, ROE improved to 13.51% in 2023 and slightly rose again to 14.13% in 2024. This trend indicates varying levels of efficiency in generating profits from equity, with 2022 representing a notable dip and subsequent recovery.
Overall, the data presents a pattern of growth interspersed with temporary declines in 2022 across the key financial metrics. The upward trajectory in both net income and equity towards the end of the period, combined with a recovery in ROE, suggests strengthening financial performance and effective utilization of shareholders’ equity in recent years.
Return on Assets (ROA)
Intuitive Surgical Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 2,322,600) | 1,798,000) | 1,322,300) | 1,704,600) | 1,060,600) | |
| Total assets | 18,743,200) | 15,441,500) | 12,974,000) | 13,555,000) | 11,168,900) | |
| Profitability Ratio | ||||||
| ROA1 | 12.39% | 11.64% | 10.19% | 12.58% | 9.50% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 16.46% | 7.82% | 9.31% | 9.40% | 6.20% | |
| Elevance Health Inc. | 5.12% | 5.50% | 5.86% | 6.26% | 5.28% | |
| Medtronic PLC | 4.09% | 4.13% | 5.54% | 3.87% | 5.28% | |
| UnitedHealth Group Inc. | 4.83% | 8.18% | 8.19% | 8.15% | 7.81% | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 6.57% | 7.05% | 7.49% | 7.28% | 6.62% | |
| ROA, Industry | ||||||
| Health Care | 5.73% | 7.19% | 9.66% | 9.46% | 5.81% | |
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
ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 2,322,600 ÷ 18,743,200 = 12.39%
2 Click competitor name to see calculations.
- Net income attributable to Intuitive Surgical, Inc.
- The net income shows a generally positive trend over the five-year period. It increased substantially from 1,060,600 thousand US dollars in 2020 to 1,704,600 thousand US dollars in 2021, followed by a decrease to 1,322,300 thousand US dollars in 2022. Subsequently, net income rebounded significantly, reaching 1,798,000 thousand US dollars in 2023 and further increasing to 2,322,600 thousand US dollars in 2024. This pattern indicates some volatility in 2022 but a strong recovery and growth in the following years.
- Total assets
- Total assets have shown a consistent upward trend throughout the period. Starting from 11,168,900 thousand US dollars in 2020, total assets increased to 13,555,000 thousand US dollars in 2021. There was a slight decline to 12,974,000 thousand US dollars in 2022, followed by notable increases to 15,441,500 thousand US dollars in 2023 and 18,743,200 thousand US dollars in 2024. This overall asset growth suggests ongoing investment and expansion over the years, with a minor dip in 2022.
- Return on Assets (ROA)
- The ROA percentage exhibits a variable but generally upward trajectory. ROA started at 9.5% in 2020 and improved significantly to 12.58% in 2021, reflecting increased profitability relative to assets. It then declined to 10.19% in 2022, corresponding with the dip in net income and total assets observed during the same year. However, ROA recovered to 11.64% in 2023 and further improved to 12.39% in 2024, indicating enhanced efficiency in asset utilization for generating net income in recent years.