Analysis of Geographic Areas
Boston Scientific Corp. operates in 2 regions: U.S. and International.
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- Income Statement
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
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Area Asset Turnover
Boston Scientific Corp., asset turnover by geographic area
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International |
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).
- U.S. Asset Turnover
- The asset turnover ratio in the U.S. region demonstrates a generally positive trend over the five-year period. Starting at 5.22 in 2018, there is a slight increase to 5.37 in 2019. Although a decline occurs in 2020 to 4.95, this ratio recovers and exceeds previous levels in subsequent years, rising to 5.81 in 2021 and further to 6.15 in 2022. This indicates improving efficiency in the utilization of assets in the U.S. market, particularly from 2021 onwards.
- International Asset Turnover
- The international asset turnover ratio exhibits a downward trend throughout the same period. Beginning at 5.95 in 2018, the ratio falls sharply to 4.91 in 2019, followed by continued decreases to 4.51 in 2020, 4.69 in 2021, and finally reaching 4.19 in 2022. This suggests a decline in the effectiveness of asset usage in international markets over these years.
- Comparative Analysis
- There is a clear divergence between the U.S. and international asset turnover ratios. While the U.S. ratio shows recovery and growth, the international ratio steadily declines. By 2022, the U.S. ratio not only recovers from its prior dip but also surpasses the international ratio by a substantial margin. This divergence may point to stronger operational efficiency and asset management domestically compared to international operations during this timeframe.
Area Asset Turnover: U.S.
Boston Scientific Corp.; U.S.; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2022 Calculation
Area asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
The annual financial data pertaining to the U.S. geographic area demonstrates several key trends over the five-year period ending December 31, 2022.
- Net Sales
- The net sales exhibit an overall upward trend, increasing from $5,538 million in 2018 to $7,632 million in 2022. Notably, there was a dip in 2020, where sales declined to $5,701 million from $6,167 million in 2019. This decrease could be attributed to external factors impacting sales during that year. However, the company rebounded strongly in 2021, reaching $6,911 million and further expanding sales in 2022.
- Property, Plant and Equipment, Net
- Property, plant, and equipment (PP&E), net values show a steady increase from $1,061 million in 2018 to $1,241 million in 2022. This gradual rise indicates consistent investment in the fixed asset base, which supports operational capacity and growth. The pace of increase is moderate, reflecting possibly controlled capital expenditure aligned with strategic plans.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures efficiency in utilizing fixed assets to generate sales, fluctuated but displays an improving trend overall. It slightly increased from 5.22 in 2018 to 5.37 in 2019, then dipped to 4.95 in 2020, possibly due to the sales reduction noted earlier and static asset base. Subsequently, the ratio improved markedly in 2021 to 5.81 and further to 6.15 in 2022, suggesting enhanced operational efficiency and better use of the fixed assets in generating revenue.
In summary, the U.S. operations reflected by these figures experienced temporary sales contraction in 2020, followed by recovery and growth. The consistent increases in PP&E indicate ongoing asset investment, while the rising asset turnover ratio in the latter years points to improved asset utilization and operational performance.
Area Asset Turnover: International
Boston Scientific Corp.; International; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2022 Calculation
Area asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
The analysis of the annual financial data for the International geographic area indicates notable trends in net sales, property, plant and equipment (PP&E), and area asset turnover over the five-year period from 2018 to 2022.
- Net Sales
- Net sales exhibited a general upward trend, increasing from US$4,286 million in 2018 to US$5,051 million in 2022. There was a slight decline observed in 2020, dropping to US$4,212 million from US$4,568 million in 2019, likely reflecting market or external challenges during that year. However, sales rebounded strongly in 2021 to US$4,977 million and showed modest growth thereafter in 2022. Overall, this demonstrates resilience and recovery, with net sales reaching their highest level by the end of the observed period.
- Property, Plant and Equipment, Net
- Investment in property, plant, and equipment showed consistent growth throughout the period. Beginning at US$720 million in 2018, the net value increased steadily each year, reaching US$1,205 million in 2022. This represents an approximate 67% increase over the five years, indicating ongoing capital expenditure and asset base expansion to support operations or capacity growth in the International segment.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of using property, plant, and equipment to generate sales, declined over the period. The ratio dropped from 5.95 in 2018 to 4.19 in 2022, suggesting that although both sales and asset values increased, asset growth outpaced sales growth. This decrease in turnover could imply lower efficiency in asset utilization or a strategic investment phase where asset base expansion temporarily outstrips revenue generation.
In summary, the International segment experienced growth in sales and a substantial increase in its asset base during the period analyzed, accompanied by a decline in asset turnover efficiency. This pattern may reflect strategic investments in assets to support future growth, albeit with a current reduction in asset productivity relative to sales.
Property, plant and equipment, net
Boston Scientific Corp., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International | |||||
| Total |
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).
- Trend Analysis of U.S. Property, Plant and Equipment, Net
- The net property, plant, and equipment in the U.S. demonstrates a consistent upward trend over the analyzed five-year period. The value increased from 1,061 million US dollars at the end of 2018 to 1,241 million US dollars by the end of 2022. This steady growth reflects a moderate but continuous expansion or reinvestment in property, plant, and equipment within the domestic market.
- Trend Analysis of International Property, Plant and Equipment, Net
- The international segment shows a more pronounced growth pattern compared to the U.S. The net value rose significantly from 720 million US dollars at the end of 2018 to 1,205 million US dollars by the end of 2022. Notably, the increase in the international assets is more rapid and consistent, indicating a strong focus on expanding or upgrading property, plant, and equipment in international markets during the period.
- Overall Total Property, Plant and Equipment, Net
- Total net property, plant, and equipment grew from 1,781 million US dollars in 2018 to 2,446 million US dollars in 2022, reflecting overall capital asset growth. This combined increase aligns with the trends seen in both geographic areas, with the international portfolio contributing a substantial portion to the overall increase, suggesting an emphasis on global asset growth.
- Comparative Insights
- The growth rate of international net property, plant, and equipment surpasses that of the U.S., signaling a strategic priority or larger investment scale internationally. The international asset base grew by approximately 67.4% over five years, while the U.S. asset base grew by about 17%.
- Over the same interval, the total net assets increased by approximately 37.3%, driven by international expansion and moderate domestic growth. The faster increase in international assets highlights the company's effort to balance its asset base with substantial investments outside the U.S.
Net sales
Boston Scientific Corp., net sales by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International | |||||
| Total |
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).
- United States Net Sales
- The net sales in the United States exhibited a general upward trend over the five-year period. Starting at US$5,538 million at the end of 2018, sales increased to US$6,167 million in 2019. There was a decline in 2020 to US$5,701 million, likely reflecting challenges faced during that year, but the sales rebounded strongly in subsequent years, reaching US$6,911 million in 2021 and further growing to US$7,632 million in 2022.
- International Net Sales
- International net sales displayed a more fluctuating pattern with less pronounced growth compared to the U.S. market. Sales increased slightly from US$4,286 million in 2018 to US$4,568 million in 2019, followed by a decline to US$4,212 million in 2020. There was a recovery in 2021 to US$4,977 million, but the growth slowed in 2022, with sales reaching US$5,051 million, indicating a relatively modest increase.
- Total Net Sales
- Total net sales mirrored the combined trends of the U.S. and International markets. The total rose from US$9,824 million in 2018 to US$10,735 million in 2019. A setback occurred in 2020, with sales declining to US$9,913 million. However, total net sales saw a significant recovery in 2021, reaching US$11,888 million, and continued to grow to US$12,683 million in 2022. The overall trend highlights resilience and a strong recovery post-2020, driven predominantly by growth in the U.S. market.
- Summary of Insights
- Across the analyzed period, the U.S. market demonstrated robust growth and stronger recovery post-2020 relative to the International market, which showed modest gains and greater volatility. The temporary decline in 2020 across all regions likely correlates with external challenges impacting sales. The consistent growth from 2021 to 2022 emphasizes a positive trajectory in net sales, with the U.S. market being the primary contributor to the overall increase. This pattern suggests a strategic focus on strengthening U.S. sales efforts while addressing the slower expansion in international business.