Common-Size Income Statement
Quarterly Data
Paying user area
Try for free
Boston Scientific Corp. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Boston Scientific Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Boston Scientific Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the quarterly financial data reveals several key trends and fluctuations in the company's cost structure, profitability, and operating performance metrics over the examined periods.
- Gross Profit Margin
- Gross profit as a percentage of net sales generally remained strong, fluctuating mostly between approximately 68% and 72%. Notably, there was a decline around mid-2020, dropping to a low near 60.5%, followed by a recovery back to the high 60% range thereafter. This suggests some pressure on costs or pricing during this interim.
- Cost of Products Sold
- The cost of products sold consistently ranged from about 28% to 31% of net sales in earlier periods, but experienced an increase to nearly 40% in June 2020 before partially normalizing. This spike aligns with the dip in gross profit margin and indicates increased production or procurement costs during that quarter.
- Operating Expenses
- Operating expenses, which include selling, general and administrative (SG&A) expenses as well as research and development (R&D) and other charges, showed variability. SG&A expenses generally hovered around 35% to 38% of net sales, with a slight upward trend observed during 2020. Research and development costs remained relatively stable, around 10% to 12%, with a modest decline toward 2023. Restructuring and impairment charges caused sporadic increases in expenses during certain quarters, particularly noticeable around late 2018, 2020, and 2021.
- Impairment Charges
- Intangible asset impairments demonstrated intermittent but significant impacts, including spikes in a few quarters such as late 2019 and 2020, with charges exceeding 7% of net sales in certain periods. Goodwill impairment was observed only in one quarter (Dec 2020) with a notable impact of -2.7%. These charges contributed to elevated operating expenses and reduced operating income during those periods.
- Operating Income Trends
- Operating income as a percentage of net sales showed marked volatility. It reached its peak above 21% in early 2019 but declined sharply during the challenging quarters of 2020, even registering negative operating results in mid to late 2020. Subsequent quarters showed a recovery trend, returning operating income to double-digit percentages by 2023, indicating operational stabilization and improvement in profitability.
- Interest and Other Income/Expense
- Interest expense fluctuated notably, spiking as high as -9.22% in early 2022 before reverting closer to previous levels near -2%. Other income (expense) items exhibited inconsistent patterns, with occasional positive spikes but mostly negative impacts on net sales percentage, indicating variability in non-operating financial activities.
- Net Income and Earnings to Common Stockholders
- Net income as a percent of net sales experienced wide fluctuations, peaking sharply in late 2019 (137.6%) largely due to unusual items, followed by significant declines including several quarters with negative results in 2020. Thereafter, net income generally stabilized within a narrower range around 4% to 12%. Earnings available to common stockholders mirrored this pattern but were slightly lower due to preferred stock dividends, which were consistently a small portion (less than 0.5%) of net sales from 2020 onwards.
- Other Observations
- Contingent consideration and litigation-related charges presented fluctuating minor impacts on operating income, occasionally producing material credit or charge effects. Disposals of businesses and assets generated intermittent gains, providing some offset to operating expenses in selected quarters.
In summary, while the company maintained a relatively stable gross profit margin and controlled R&D spending, it encountered episodic challenges reflected in heightened cost of goods sold, impairment charges, and volatile operating income, particularly during 2020. Recovery trends in profitability and operating efficiency are evident in later quarters, supported by reductions in impairment charges and improved cost control measures, culminating in stronger operating margins and net income available to common stockholders by the end of the analyzed period.