Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Intuitive Surgical Inc., profitability ratios
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Intuitive Surgical Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Intuitive Surgical Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Intuitive Surgical Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Intuitive Surgical Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Intuitive Surgical Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
Intuitive Surgical Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | 2,861,200 | 3,110,200 | 2,604,100 | 2,194,100 | 1,890,100 | |
| Revenue | 4,358,400 | 4,478,500 | 3,724,200 | 3,128,900 | 2,704,400 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 65.65% | 69.45% | 69.92% | 70.12% | 69.89% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Becton, Dickinson & Co. | 44.27% | 47.94% | 45.44% | 49.14% | 47.99% | |
| Boston Scientific Corp. | — | 70.98% | 71.37% | 71.34% | 71.09% | |
| Danaher Corp. | — | 55.74% | 55.83% | 55.61% | 55.29% | |
| Edwards Lifesciences Corp. | 75.36% | 74.37% | 74.77% | 74.52% | 73.09% | |
| Medtronic PLC | 67.41% | 70.04% | 69.77% | 68.73% | 68.29% | |
| Stryker Corp. | 63.11% | 65.14% | 65.72% | 65.68% | 66.18% | |
| Thermo Fisher Scientific Inc. | — | 44.35% | 44.57% | 45.15% | 45.80% | |
| UnitedHealth Group Inc. | — | 23.19% | 23.33% | 22.98% | 23.13% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,861,200 ÷ 4,358,400 = 65.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Intuitive Surgical Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Operating Profit Margin
Intuitive Surgical Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 1,049,800 | 1,374,500 | 1,199,400 | 1,054,600 | 945,200 | |
| Revenue | 4,358,400 | 4,478,500 | 3,724,200 | 3,128,900 | 2,704,400 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 24.09% | 30.69% | 32.21% | 33.71% | 34.95% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Becton, Dickinson & Co. | 8.67% | 10.18% | 9.37% | 12.22% | 11.46% | |
| Boston Scientific Corp. | — | 14.14% | 15.33% | 14.20% | 5.33% | |
| Danaher Corp. | — | 18.25% | 17.11% | 16.48% | 16.29% | |
| Edwards Lifesciences Corp. | 20.46% | 26.38% | 20.10% | 31.89% | 25.35% | |
| Medtronic PLC | 16.57% | 20.51% | 22.20% | 17.94% | 18.35% | |
| Stryker Corp. | 15.49% | 18.23% | 18.65% | 18.40% | 19.13% | |
| Thermo Fisher Scientific Inc. | — | 17.99% | 15.53% | 14.19% | 13.40% | |
| UnitedHealth Group Inc. | — | 8.19% | 7.71% | 7.60% | 7.03% | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | — | 11.56% | 11.18% | 10.91% | 10.20% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | — | 18.67% | 17.79% | 18.39% | 19.66% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
1 2020 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 1,049,800 ÷ 4,358,400 = 24.09%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Intuitive Surgical Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
Intuitive Surgical Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 1,060,600 | 1,379,300 | 1,127,900 | 660,000 | 735,900 | |
| Revenue | 4,358,400 | 4,478,500 | 3,724,200 | 3,128,900 | 2,704,400 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 24.33% | 30.80% | 30.29% | 21.09% | 27.21% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Becton, Dickinson & Co. | 5.11% | 7.13% | 1.95% | 9.10% | 7.82% | |
| Boston Scientific Corp. | — | 43.78% | 17.01% | 1.15% | 4.14% | |
| Danaher Corp. | — | 16.80% | 13.33% | 13.60% | 15.13% | |
| Edwards Lifesciences Corp. | 18.77% | 24.08% | 19.40% | 16.99% | 19.22% | |
| Medtronic PLC | 16.56% | 15.16% | 10.36% | 13.56% | 12.27% | |
| Stryker Corp. | 11.14% | 13.99% | 26.12% | 8.20% | 14.54% | |
| Thermo Fisher Scientific Inc. | — | 14.47% | 12.06% | 10.64% | 11.06% | |
| UnitedHealth Group Inc. | — | 5.76% | 5.33% | 5.28% | 3.81% | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | — | 9.73% | 8.11% | 7.36% | 6.79% | |
| Net Profit Margin, Industry | ||||||
| Health Care | — | 16.41% | 14.00% | 9.98% | 14.08% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
1 2020 Calculation
Net profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 1,060,600 ÷ 4,358,400 = 24.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Intuitive Surgical Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Return on Equity (ROE)
Intuitive Surgical Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 1,060,600 | 1,379,300 | 1,127,900 | 660,000 | 735,900 | |
| Total Intuitive Surgical, Inc. stockholders’ equity | 9,731,500 | 8,263,800 | 6,678,800 | 4,725,200 | 5,777,800 | |
| Profitability Ratio | ||||||
| ROE1 | 10.90% | 16.69% | 16.89% | 13.97% | 12.74% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Becton, Dickinson & Co. | 3.68% | 5.85% | 1.48% | 8.50% | 12.79% | |
| Boston Scientific Corp. | — | 33.87% | 19.15% | 1.48% | 5.15% | |
| Danaher Corp. | — | 9.94% | 9.40% | 9.45% | 11.10% | |
| Edwards Lifesciences Corp. | 18.00% | 25.24% | 23.00% | 19.74% | 21.74% | |
| Medtronic PLC | 9.44% | 9.25% | 6.12% | 8.01% | 6.80% | |
| Stryker Corp. | 12.22% | 16.26% | 30.29% | 10.23% | 17.25% | |
| Thermo Fisher Scientific Inc. | — | 12.45% | 10.65% | 8.76% | 9.39% | |
| UnitedHealth Group Inc. | — | 24.02% | 23.19% | 22.10% | 18.33% | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | — | 15.63% | 13.40% | 12.15% | 11.61% | |
| ROE, Industry | ||||||
| Health Care | — | 23.37% | 21.29% | 13.59% | 18.84% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
1 2020 Calculation
ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,060,600 ÷ 9,731,500 = 10.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Intuitive Surgical Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Intuitive Surgical Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Intuitive Surgical, Inc. | 1,060,600 | 1,379,300 | 1,127,900 | 660,000 | 735,900 | |
| Total assets | 11,168,900 | 9,733,200 | 7,846,700 | 5,758,000 | 6,486,900 | |
| Profitability Ratio | ||||||
| ROA1 | 9.50% | 14.17% | 14.37% | 11.46% | 11.34% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Becton, Dickinson & Co. | 1.62% | 2.38% | 0.58% | 2.92% | 3.81% | |
| Boston Scientific Corp. | — | 15.38% | 7.96% | 0.55% | 1.92% | |
| Danaher Corp. | — | 4.85% | 5.54% | 5.34% | 5.64% | |
| Edwards Lifesciences Corp. | 11.38% | 16.14% | 13.57% | 10.25% | 12.63% | |
| Medtronic PLC | 5.28% | 5.16% | 3.40% | 4.04% | 3.55% | |
| Stryker Corp. | 4.66% | 6.90% | 13.05% | 4.60% | 8.06% | |
| Thermo Fisher Scientific Inc. | — | 6.33% | 5.22% | 3.93% | 4.40% | |
| UnitedHealth Group Inc. | — | 7.96% | 7.87% | 7.59% | 5.71% | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | — | 6.95% | 6.06% | 5.26% | 4.99% | |
| ROA, Industry | ||||||
| Health Care | — | 8.44% | 7.94% | 5.12% | 7.42% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06).
1 2020 Calculation
ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 1,060,600 ÷ 11,168,900 = 9.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Intuitive Surgical Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |