Stock Analysis on Net
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 Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Boston Scientific Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 51 18 (29) 120 (220)
State 19 33 (35) 54 (27)
Foreign 380 127 151 101 160
Current 450 178 87 275 (87)
Federal (92) (256) (26) (146) (124)
State (32) (3) (6) (18) 4
Foreign 117 117 (53) (4,124) (42)
Deferred (7) (142) (85) (4,288) (162)
Income tax expense (benefit) 443 36 2 (4,013) (249)

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Boston Scientific Corp. current increased from 2020 to 2021 and from 2021 to 2022.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Boston Scientific Corp. deferred decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Boston Scientific Corp. income tax expense (benefit) increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

Boston Scientific Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 0.70% 2.50% -16.60% 6.70% 0.10%
Domestic taxes on foreign earnings 15.30% 6.80% -155.40% 21.90% 0.50%
Effect of foreign taxes -3.80% -14.30% 40.70% -47.60% -8.40%
Acquisition-related 4.40% -8.10% 16.70% 12.20% 2.10%
Research credit -4.50% -3.00% 43.00% -4.20% -2.60%
Valuation allowance -1.30% 0.80% 42.00% 1.10% -5.20%
Goodwill impairment charges 0.00% 0.00% -3.70% 0.00% 0.00%
Compensation-related 0.60% -0.60% 7.70% -0.30% -1.00%
Non-deductible expenses 0.40% 0.40% -64.40% 3.60% 0.80%
Uncertain tax positions 7.70% 1.20% 96.80% 1.40% -22.00%
Intra-entity asset transfers 0.00% 0.00% -10.20% -597.00% 0.00%
Return to provision -2.10% -5.70% 37.30% -0.20% -0.20%
Change in tax rates -0.20% 1.90% -51.80% -0.20% 0.50%
Other, net 0.70% 0.40% -6.00% -2.40% 1.60%
Effective income tax rate, before TCJA net impact 38.90% 3.30% -2.90% -584.00% -12.80%
TCJA net impact 0.00% 0.00% 0.00% 0.00% -4.70%
Effective income tax rate 38.90% 3.30% -2.90% -584.00% -17.50%

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
Effective income tax rate, before TCJA net impact Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Boston Scientific Corp. effective income tax rate, before TCJA net impact increased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Boston Scientific Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Inventory costs and related reserves 19 10 10 — 18
Tax benefit of net operating loss and credits 511 620 557 545 450
Reserves and accruals 304 324 308 258 258
Restructuring-related charges 6 14 23 20 12
Litigation and product liability reserves 103 127 82 168 221
Investment write-down 38 31 — 42 28
Compensation related 136 130 134 121 106
Federal benefit of uncertain tax positions 9 8 9 10 10
Intangible assets 3,666 3,546 3,551 3,447 —
Capitalized R&D 160 67 4 — —
Property, plant and equipment 2 14 — — —
Other — 35 (10) — 37
Deferred tax assets 4,954 4,926 4,668 4,611 1,140
Valuation allowance (1,004) (1,014) (887) (915) (344)
Deferred tax assets, less valuation allowance 3,950 3,912 3,781 3,696 796
Property, plant and equipment — — (1) (16) (25)
Unrealized gains and losses on derivative financial instruments (117) (79) (12) (52) (44)
Investment write-up — — (34) — —
Intangible assets — — — — (968)
Inventory costs and related services — — — (2) —
Other (34) — — (25) —
Deferred tax liabilities (151) (79) (47) (95) (1,037)
Net deferred tax assets (liabilities) 3,799 3,833 3,734 3,601 (241)

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
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Boston Scientific Corp. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax assets, less valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Boston Scientific Corp. deferred tax assets, less valuation allowance increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Boston Scientific Corp. net deferred tax assets (liabilities) increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

Boston Scientific Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets 3,942 4,142 4,210 4,196 87
Deferred tax liabilities 144 310 330 595 328

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
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Boston Scientific Corp. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Boston Scientific Corp. deferred tax liabilities decreased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 3,942 4,142 4,210 4,196 87
Total assets (adjusted) 28,527 28,087 26,567 26,369 20,912
Adjustment to Total Liabilities
Total liabilities (as reported) 14,896 15,608 15,451 16,688 12,273
Less: Noncurrent deferred tax liabilities, net 144 310 330 595 328
Total liabilities (adjusted) 14,752 15,298 15,121 16,093 11,945
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 17,573 16,622 15,326 13,877 8,726
Less: Net deferred tax assets (liabilities) 3,799 3,833 3,734 3,601 (241)
Stockholders’ equity (adjusted) 13,774 12,789 11,592 10,276 8,967
Adjustment to Net Income (loss)
Net income (loss) (as reported) 698 1,041 (82) 4,700 1,671
Add: Deferred income tax expense (benefit) (7) (142) (85) (4,288) (162)
Net income (loss) (adjusted) 691 899 (167) 412 1,509

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 Deferred Taxes (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 5.45% 7.56% -1.68% 3.84% 15.36%
Total Asset Turnover
Reported total asset turnover 0.39 0.37 0.32 0.35 0.47
Adjusted total asset turnover 0.44 0.42 0.37 0.41 0.47
Financial Leverage
Reported financial leverage 1.85 1.94 2.01 2.20 2.41
Adjusted financial leverage 2.07 2.20 2.29 2.57 2.33
Return on Equity (ROE)
Reported ROE 3.97% 6.26% -0.54% 33.87% 19.15%
Adjusted ROE 5.02% 7.03% -1.44% 4.01% 16.83%
Return on Assets (ROA)
Reported ROA 2.15% 3.23% -0.27% 15.38% 7.96%
Adjusted ROA 2.42% 3.20% -0.63% 1.56% 7.22%

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 total 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 decreased from 2020 to 2021 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 691 899 (167) 412 1,509
Net sales 12,682 11,888 9,913 10,735 9,823
Profitability Ratio
Adjusted net profit margin2 5.45% 7.56% -1.68% 3.84% 15.36%

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 × 691 ÷ 12,682 = 5.45%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 12,682 11,888 9,913 10,735 9,823
Adjusted total assets 28,527 28,087 26,567 26,369 20,912
Activity Ratio
Adjusted total asset turnover2 0.44 0.42 0.37 0.41 0.47

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 ÷ 28,527 = 0.44

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 28,527 28,087 26,567 26,369 20,912
Adjusted stockholders’ equity 13,774 12,789 11,592 10,276 8,967
Solvency Ratio
Adjusted financial leverage2 2.07 2.20 2.29 2.57 2.33

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
= 28,527 ÷ 13,774 = 2.07

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 decreased from 2020 to 2021 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 691 899 (167) 412 1,509
Adjusted stockholders’ equity 13,774 12,789 11,592 10,276 8,967
Profitability Ratio
Adjusted ROE2 5.02% 7.03% -1.44% 4.01% 16.83%

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 × 691 ÷ 13,774 = 5.02%

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 691 899 (167) 412 1,509
Adjusted total assets 28,527 28,087 26,567 26,369 20,912
Profitability Ratio
Adjusted ROA2 2.42% 3.20% -0.63% 1.56% 7.22%

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 × 691 ÷ 28,527 = 2.42%

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.