Stock Analysis on Net

Boston Scientific Corp. (NYSE:BSX)

This company has been moved to the archive! The financial data has not been updated since May 4, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Boston Scientific Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Goodwill 12,920 11,988 9,951 10,176 7,911
Technology-related 12,397 11,957 11,059 12,020 10,197
Patents 486 494 511 525 520
Other intangible assets 1,960 1,900 1,775 1,754 1,666
Amortizable intangible assets, gross carrying amount 14,843 14,351 13,345 14,299 12,383
Accumulated amortization (9,173) (8,476) (7,805) (7,195) (6,617)
Amortizable intangible assets, net 5,670 5,875 5,540 7,104 5,766
IPR&D 112 126 257 662 486
Technology-related 120 120 120 120 120
Indefinite-lived intangible assets 232 246 377 782 606
Other intangible assets 5,902 6,121 5,917 7,886 6,372
Goodwill and other intangible assets 18,822 18,109 15,868 18,062 14,283

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Boston Scientific Corp. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Other intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Boston Scientific Corp. other intangible assets increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Boston Scientific Corp. goodwill and other intangible assets increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Boston Scientific Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 32,469 32,229 30,777 30,565 20,999
Less: Goodwill 12,920 11,988 9,951 10,176 7,911
Total assets (adjusted) 19,549 20,241 20,826 20,389 13,088
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 17,573 16,622 15,326 13,877 8,726
Less: Goodwill 12,920 11,988 9,951 10,176 7,911
Stockholders’ equity (adjusted) 4,653 4,634 5,375 3,701 815
Adjustment to Net Income (loss)
Net income (loss) (as reported) 698 1,041 (82) 4,700 1,671
Add: Goodwill impairment charges 73
Net income (loss) (adjusted) 698 1,041 (9) 4,700 1,671

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).


Boston Scientific Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Boston Scientific Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 5.50% 8.76% -0.83% 43.78% 17.01%
Adjusted net profit margin 5.50% 8.76% -0.09% 43.78% 17.01%
Total Asset Turnover
Reported total asset turnover 0.39 0.37 0.32 0.35 0.47
Adjusted total asset turnover 0.65 0.59 0.48 0.53 0.75
Financial Leverage
Reported financial leverage 1.85 1.94 2.01 2.20 2.41
Adjusted financial leverage 4.20 4.37 3.87 5.51 16.06
Return on Equity (ROE)
Reported ROE 3.97% 6.26% -0.54% 33.87% 19.15%
Adjusted ROE 15.00% 22.46% -0.17% 126.99% 205.03%
Return on Assets (ROA)
Reported ROA 2.15% 3.23% -0.27% 15.38% 7.96%
Adjusted ROA 3.57% 5.14% -0.04% 23.05% 12.77%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Boston Scientific Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boston Scientific Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Boston Scientific Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Boston Scientific Corp. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Boston Scientific Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Boston Scientific Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 698 1,041 (82) 4,700 1,671
Net sales 12,682 11,888 9,913 10,735 9,823
Profitability Ratio
Net profit margin1 5.50% 8.76% -0.83% 43.78% 17.01%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 698 1,041 (9) 4,700 1,671
Net sales 12,682 11,888 9,913 10,735 9,823
Profitability Ratio
Adjusted net profit margin2 5.50% 8.76% -0.09% 43.78% 17.01%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 698 ÷ 12,682 = 5.50%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 698 ÷ 12,682 = 5.50%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Boston Scientific Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales 12,682 11,888 9,913 10,735 9,823
Total assets 32,469 32,229 30,777 30,565 20,999
Activity Ratio
Total asset turnover1 0.39 0.37 0.32 0.35 0.47
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 12,682 11,888 9,913 10,735 9,823
Adjusted total assets 19,549 20,241 20,826 20,389 13,088
Activity Ratio
Adjusted total asset turnover2 0.65 0.59 0.48 0.53 0.75

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 12,682 ÷ 32,469 = 0.39

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 12,682 ÷ 19,549 = 0.65

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boston Scientific Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 32,469 32,229 30,777 30,565 20,999
Stockholders’ equity 17,573 16,622 15,326 13,877 8,726
Solvency Ratio
Financial leverage1 1.85 1.94 2.01 2.20 2.41
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 19,549 20,241 20,826 20,389 13,088
Adjusted stockholders’ equity 4,653 4,634 5,375 3,701 815
Solvency Ratio
Adjusted financial leverage2 4.20 4.37 3.87 5.51 16.06

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 32,469 ÷ 17,573 = 1.85

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 19,549 ÷ 4,653 = 4.20

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Boston Scientific Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 698 1,041 (82) 4,700 1,671
Stockholders’ equity 17,573 16,622 15,326 13,877 8,726
Profitability Ratio
ROE1 3.97% 6.26% -0.54% 33.87% 19.15%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 698 1,041 (9) 4,700 1,671
Adjusted stockholders’ equity 4,653 4,634 5,375 3,701 815
Profitability Ratio
Adjusted ROE2 15.00% 22.46% -0.17% 126.99% 205.03%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 698 ÷ 17,573 = 3.97%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 698 ÷ 4,653 = 15.00%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Boston Scientific Corp. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 698 1,041 (82) 4,700 1,671
Total assets 32,469 32,229 30,777 30,565 20,999
Profitability Ratio
ROA1 2.15% 3.23% -0.27% 15.38% 7.96%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 698 1,041 (9) 4,700 1,671
Adjusted total assets 19,549 20,241 20,826 20,389 13,088
Profitability Ratio
Adjusted ROA2 3.57% 5.14% -0.04% 23.05% 12.77%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 698 ÷ 32,469 = 2.15%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 698 ÷ 19,549 = 3.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Boston Scientific Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.