Stock Analysis on Net
Stock Analysis on Net

Boston Scientific Corp. (NYSE:BSX)

$22.49

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

Common-Size Income Statement

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Boston Scientific Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net sales
Cost of products sold
Gross profit
Selling, general and administrative expenses
Research and development expenses
Royalty expense
Amortization expense
Goodwill impairment charges
Intangible asset impairment charges
Contingent consideration net (expense) benefit
Restructuring net charges
Litigation-related net charges
Gain (loss) on disposal of businesses and assets
Operating expenses
Operating income (loss)
Interest expense
Other, net
Other income (expense)
Income (loss) before income taxes
Income tax (expense) benefit
Net income (loss)
Preferred stock dividends
Net income (loss) available to common stockholders

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).

Gross profit margin
The gross profit margin decreased notably from 71.37% in 2018 to 65.05% in 2020, reflecting an increase in the cost of products sold during that period. It then improved slightly to 68.78% in 2021 and remained stable at 68.81% in 2022, indicating some recovery in cost controls or pricing power.
Cost of products sold
Cost of products sold as a percentage of net sales increased significantly in 2020 to 34.95% from around 29% in previous years, which contributed to the sharp decline in gross profit margin. It then declined to around 31.2% in 2021 and 2022.
Selling, general, and administrative expenses
SG&A expenses fluctuated slightly but generally trended down from -36.34% in 2018 to -35.63% in 2022, after peaking at -38.21% in 2020. This suggests efforts to control operating expenses post-2020.
Research and development expenses
R&D expenses as a percentage of net sales remained relatively stable between 10.13% and 11.53%, showing consistent investment in innovation over the years, with a slight decline in 2021.
Impairment and restructuring charges
The company experienced notable intangible asset impairment charges, peaking at -4.64% of net sales in 2020, and goodwill impairment appeared only in 2020 at -0.74%. These impairment charges decreased substantially after 2020. Restructuring charges remained low and declined steadily from -0.37% in 2018 to -0.19% in 2022.
Litigation-related charges
Litigation-related charges increased markedly in 2020 (-2.8%) and 2021 (-3.62%), before decreasing to -1.36% in 2022, indicating a temporary escalation in legal expenses and subsequent reduction.
Operating income
Operating income fell sharply to -0.81% of net sales in 2020 from double-digit positive values in previous years but recovered to 13% in 2022. This illustrates a strong rebound in operating profitability following the challenging 2020 fiscal year.
Interest and other income/expenses
Interest expense fluctuated, rising to -4.41% in 2019 then decreasing to -2.87% in 2021 but edged up again in 2022. Other net income/expenses showed significant volatility, with swings between positive and negative values, contributing some unpredictability to financial performance beyond core operations.
Income before taxes and net income
Income before income taxes dropped to negative levels in 2020 (-0.8%) from positive results previously, but recovered in 2021 and 2022 to around 9%. Net income followed a similar pattern, with a steep decline in 2020 turning to modest profitability by 2022. The net income margin of 5.5% in 2022 remains below earlier years' peaks.
Income tax impact
Income tax expense showed unusual patterns, notably an exceptionally high benefit percentage of 37.38% in 2019, then turning into an expense in subsequent years, reflecting discrete tax events or accounting adjustments that significantly impacted after-tax results.
Preferred stock dividends and net income available to common stockholders
Preferred stock dividends appeared from 2020 onward, slightly reducing the net income available to common stockholders. The net income available to common stockholders mirrored the overall net income trend, with negative returns in 2020 and incremental recovery by 2022, though remaining below pre-2020 levels.