Operating Profit Margin
since 2005
Calculation
Boston Scientific Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.00% | = | 100 | × | 1,649) | ÷ | 12,682) |
| Dec 31, 2021 | 10.09% | = | 100 | × | 1,199) | ÷ | 11,888) |
| Dec 31, 2020 | -0.81% | = | 100 | × | (80) | ÷ | 9,913) |
| Dec 31, 2019 | 14.14% | = | 100 | × | 1,518) | ÷ | 10,735) |
| Dec 31, 2018 | 15.33% | = | 100 | × | 1,506) | ÷ | 9,823) |
| Dec 31, 2017 | 14.20% | = | 100 | × | 1,285) | ÷ | 9,048) |
| Dec 31, 2016 | 5.33% | = | 100 | × | 447) | ÷ | 8,386) |
| Dec 31, 2015 | -4.37% | = | 100 | × | (327) | ÷ | 7,477) |
| Dec 31, 2014 | -4.08% | = | 100 | × | (301) | ÷ | 7,380) |
| Dec 31, 2013 | 1.68% | = | 100 | × | 120) | ÷ | 7,143) |
| Dec 31, 2012 | -53.36% | = | 100 | × | (3,868) | ÷ | 7,249) |
| Dec 31, 2011 | 11.86% | = | 100 | × | 904) | ÷ | 7,622) |
| Dec 31, 2010 | -8.40% | = | 100 | × | (656) | ÷ | 7,806) |
| Dec 31, 2009 | -10.92% | = | 100 | × | (894) | ÷ | 8,188) |
| Dec 31, 2008 | -18.70% | = | 100 | × | (1,505) | ÷ | 8,050) |
| Dec 31, 2007 | -0.17% | = | 100 | × | (14) | ÷ | 8,357) |
| Dec 31, 2006 | -37.71% | = | 100 | × | (2,949) | ÷ | 7,821) |
| Dec 31, 2005 | 15.41% | = | 100 | × | 968) | ÷ | 6,283) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
- Operating Income (Loss)
- The operating income demonstrates significant volatility over the observed period. Initially, in 2005, the company reported a positive operating income of $968 million. However, from 2006 to 2010, the operating income mostly remained negative, reaching notable lows such as -$2,949 million in 2006 and -$3,868 million in 2012. Despite these downturns, there are instances of recovery, including positive figures in 2011, 2016, and post-2013 periods, with values stabilizing in the latter years, culminating in $1,649 million in 2022. This pattern indicates intermittent periods of operating challenges followed by phases of operational improvement.
- Net Sales
- Net sales generally exhibit an upward trend throughout the years. The revenue rose from $6,283 million in 2005 to $12,682 million in 2022, which more than doubles the initial figure. While there were some minor fluctuations such as slight declines around 2008, 2011, and 2020, the overall trajectory suggests consistent growth in sales volume or pricing power. This growth trend implies strengthening market presence or successful sales strategies in the company's operations.
- Operating Profit Margin
- The operating profit margin reflects substantial fluctuations and mirrors the variations observed in operating income. Early years show strong margins, such as 15.41% in 2005, followed by sharp declines into negative territory, with major dips to -37.71% in 2006 and -53.36% in 2012. These margins suggest the company faced significant operational inefficiencies or extraordinary expenses in these periods. Post-2013, margins returned to positive territory and showed gradual improvement, reaching 13% by 2022. This recovery signals improving operational efficiency or favorable cost controls aligned with increased sales, supporting a trend toward profitability.
- Overall Analysis
- The financial data indicate a company experiencing substantial operational challenges during the mid-period years, as evidenced by volatile operating income and negative margins. Nevertheless, the resilience in net sales growth suggests that demand or pricing remained strong despite profitability issues. From the mid-2010s onward, a sustained recovery in operating income and margins correlates with rising sales, reflecting enhanced operational management and profitability. The improvement in operating metrics toward 2022 signals a positive outlook on the company’s capacity to convert sales into earnings efficiently.
Comparison to Competitors
Boston Scientific Corp., operating profit margin, long-term trends, comparison to competitors
| Boston Scientific Corp. | Abbott Laboratories | CVS Health Corp. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.00% | 19.16% | 2.41% | 25.35% | 18.15% | 8.83% |
| Dec 31, 2021 | 10.09% | 19.56% | 4.54% | 31.89% | 14.89% | 8.40% |
| Dec 31, 2020 | -0.81% | 15.48% | 5.19% | 24.09% | 16.57% | 8.76% |
| Dec 31, 2019 | 14.14% | 14.21% | 4.69% | 30.69% | 20.51% | 8.19% |
| Dec 31, 2018 | 15.33% | 11.94% | 2.07% | 32.21% | 22.20% | 7.71% |
| Dec 31, 2017 | 14.20% | 6.30% | 5.15% | 33.71% | 17.94% | 7.60% |
| Dec 31, 2016 | 5.33% | 15.27% | 5.84% | 34.95% | 18.35% | 7.03% |
| Dec 31, 2015 | -4.37% | 14.05% | 6.18% | 31.04% | 18.59% | 7.05% |
| Dec 31, 2014 | -4.08% | 12.84% | 6.31% | 25.56% | 22.42% | 7.92% |
| Dec 31, 2013 | 1.68% | 12.03% | 6.34% | 37.64% | 26.53% | 7.90% |
| Dec 31, 2012 | -53.36% | 20.28% | 5.87% | 40.30% | 0.00% | 8.42% |
| Dec 31, 2011 | 11.86% | 14.81% | 5.91% | 39.54% | 0.00% | 8.36% |
| Dec 31, 2010 | -8.40% | 17.31% | 6.39% | 39.29% | 0.00% | 8.41% |
| Dec 31, 2009 | -10.92% | 20.27% | 6.52% | 35.87% | 0.00% | 7.35% |
| Dec 31, 2008 | -18.70% | 19.28% | 6.91% | 35.53% | 0.00% | 6.54% |
| Dec 31, 2007 | -0.17% | 17.67% | 6.28% | 34.41% | 0.00% | 10.57% |
| Dec 31, 2006 | -37.71% | 9.09% | 5.57% | 28.81% | 0.00% | 9.88% |
| Dec 31, 2005 | 15.41% | 19.53% | 5.46% | 30.25% | 0.00% | 11.98% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).