Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Boston Scientific Corp., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a declining trend from 5.51 in 2018 to 4.76 in 2020, followed by a slight recovery to 5.28 in 2021, and a marginal decrease to 5.18 in 2022. This indicates a reduction in efficiency in using net fixed assets to generate sales over the initial years, with some improvement thereafter, though not returning to the initial level.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted metric reveals a more pronounced decline from 5.51 in 2018 to 3.90 in 2020, and a subsequent gradual increase to 4.48 by 2022. The pattern suggests that when accounting for operating leases and right-of-use assets, the efficiency of asset utilization declined more sharply compared to the standard net fixed asset turnover but showed a recovery trend post-2020.
- Total Asset Turnover
- The total asset turnover ratio decreased significantly from 0.47 in 2018 to 0.32 in 2020, reflecting diminishing ability to generate revenue from total assets during this period. However, a gradual improvement is noted with ratios rising to 0.37 in 2021 and 0.39 in 2022, indicating moderate recovery in asset utilization efficiency.
- Equity Turnover
- Equity turnover has experienced a noticeable downturn, dropping from 1.13 in 2018 to 0.65 in 2020. The figure slightly increased to 0.72 in 2021 where it stabilized through 2022. This trend suggests reduced efficiency in using shareholders' equity to generate sales, with limited recovery and stabilization in the later years.
Net Fixed Asset Turnover
Boston Scientific Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 12,682) | 11,888) | 9,913) | 10,735) | 9,823) | |
| Property, plant and equipment, net | 2,446) | 2,252) | 2,084) | 2,079) | 1,782) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 5.18 | 5.28 | 4.76 | 5.16 | 5.51 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.76 | 4.81 | 3.83 | — | — | |
| CVS Health Corp. | 24.98 | 22.56 | 21.25 | — | — | |
| Elevance Health Inc. | 36.07 | 34.94 | 34.69 | — | — | |
| Intuitive Surgical Inc. | 2.62 | 3.04 | 2.76 | — | — | |
| Medtronic PLC | 5.85 | 5.77 | 5.99 | — | — | |
| UnitedHealth Group Inc. | 31.81 | 31.81 | 29.64 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 19.90 | 18.93 | 17.74 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 9.32 | 9.09 | 8.34 | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 12,682 ÷ 2,446 = 5.18
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated an overall upward trend from 2018 to 2022. Starting at 9,823 million USD in 2018, sales increased significantly to 10,735 million USD in 2019. There was a slight decline in 2020 to 9,913 million USD, likely indicating external challenges during that year. However, this was followed by a robust recovery with sales rising to 11,888 million USD in 2021 and further growth to 12,682 million USD in 2022, reflecting a positive growth trajectory over the five-year period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment exhibited steady growth throughout the period. Values increased each year from 1,782 million USD in 2018 to 2,446 million USD in 2022. This consistent increase suggests ongoing investments in fixed assets, possibly to support operational capacity or modernization initiatives.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed some variability but remained within a relatively narrow range. Starting at 5.51 in 2018, the ratio declined to 5.16 in 2019 and further to 4.76 in 2020, likely corresponding to the dip in net sales during that year. In 2021, the ratio improved to 5.28 and slightly decreased to 5.18 in 2022. This pattern indicates an initial reduction in efficiency in using fixed assets to generate sales during 2019-2020, followed by a recovery phase, maintaining a moderately high level of asset turnover overall.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Boston Scientific Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 12,682) | 11,888) | 9,913) | 10,735) | 9,823) | |
| Property, plant and equipment, net | 2,446) | 2,252) | 2,084) | 2,079) | 1,782) | |
| Operating lease right-of-use assets | 386) | 435) | 458) | 336) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 2,832) | 2,687) | 2,542) | 2,415) | 1,782) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.48 | 4.42 | 3.90 | 4.45 | 5.51 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 4.25 | 4.26 | 3.42 | — | — | |
| CVS Health Corp. | 10.46 | 9.09 | 8.04 | — | — | |
| Elevance Health Inc. | 31.64 | 30.12 | 29.26 | — | — | |
| Intuitive Surgical Inc. | 2.53 | 2.93 | 2.66 | — | — | |
| Medtronic PLC | 5.06 | 4.84 | 5.02 | — | — | |
| UnitedHealth Group Inc. | 21.54 | 21.54 | 19.55 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 12.65 | 11.63 | 10.46 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 7.48 | 7.17 | 6.51 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 12,682 ÷ 2,832 = 4.48
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated overall growth from 2018 through 2022. Starting at 9,823 million USD in 2018, sales increased to 10,735 million USD in 2019, but then declined slightly to 9,913 million USD in 2020. Subsequently, sales recovered and grew steadily to reach 11,888 million USD in 2021 and further to 12,682 million USD in 2022. This indicates a strong rebound after 2020 and consistent growth in the latter years.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment (including operating lease, right-of-use assets) exhibited a consistent upward trend over the five-year period. Values rose from 1,782 million USD at the end of 2018 to 2,415 million USD in 2019 and continued increasing annually, reaching 2,832 million USD by the end of 2022. This steady increase suggests ongoing investment in fixed assets and possibly expansion or upgrading of operational capacity.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed a declining trend initially, dropping from 5.51 in 2018 to 3.9 in 2020. This decline signifies that net sales were growing at a slower pace relative to the increase in net fixed assets during this period, implying less efficient utilization of fixed assets. However, from 2020 onwards, the ratio improved slightly, moving up to 4.42 in 2021 and stabilizing at 4.48 in 2022, indicating some recovery in asset utilization efficiency.
- Overall Analysis
- Overall, the company experienced growth in net sales with a temporary dip in 2020 likely due to external factors. Investment in property, plant, and equipment increased steadily, reflecting expansion or modernization initiatives. While asset turnover declined initially—implying less efficient use of assets—the ratio improved toward the end of the period, indicating enhancements in operational efficiency. The combination of growing sales and asset base, alongside recovering asset turnover, suggests strategic investments aligning with revenue growth and better asset management in recent years.
Total Asset Turnover
Boston Scientific Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.39 | 0.37 | 0.32 | 0.35 | 0.47 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.59 | 0.57 | 0.48 | — | — | |
| CVS Health Corp. | 1.41 | 1.25 | 1.16 | — | — | |
| Elevance Health Inc. | 1.51 | 1.41 | 1.39 | — | — | |
| Intuitive Surgical Inc. | 0.48 | 0.42 | 0.39 | — | — | |
| Medtronic PLC | 0.35 | 0.32 | 0.32 | — | — | |
| UnitedHealth Group Inc. | 1.31 | 1.34 | 1.30 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.17 | 1.09 | 1.03 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.75 | 0.70 | 0.64 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 12,682 ÷ 32,469 = 0.39
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the period from 2018 to 2022. Net sales demonstrate a general upward trajectory, increasing from 9,823 million US dollars in 2018 to 12,682 million US dollars in 2022, reflecting growth in revenue with a slight dip observed in 2020.
Total assets show a substantial expansion from 20,999 million US dollars in 2018 to 32,469 million US dollars in 2022. This increase is particularly significant between 2018 and 2019, followed by a more moderate rise in subsequent years.
The total asset turnover ratio, which measures the efficiency of asset use in generating sales, declines from 0.47 in 2018 to a low of 0.32 in 2020, indicating reduced efficiency during this period. However, it recovers somewhat to 0.39 by 2022, suggesting an improvement in asset utilization though still below the 2018 level.
- Net Sales
- Overall growth evident from 2018 to 2022, with a minor decrease in 2020 likely linked to external factors impacting revenue.
- Total Assets
- Significant increase over the five-year span, particularly between 2018 and 2019, implying possible acquisitions, investments, or asset accumulation strategies.
- Total Asset Turnover
- Decline through 2020 showing diminished efficiency in asset use for sales generation, with a partial rebound thereafter, indicating efforts to better utilize assets.
In summary, the organization experienced revenue growth supported by rising asset base, though efficiency in converting assets to sales weakened during the mid-period before showing signs of recovery in the latter years.
Equity Turnover
Boston Scientific Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 12,682) | 11,888) | 9,913) | 10,735) | 9,823) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.72 | 0.72 | 0.65 | 0.77 | 1.13 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 1.19 | 1.20 | 1.06 | — | — | |
| CVS Health Corp. | 4.53 | 3.87 | 3.86 | — | — | |
| Elevance Health Inc. | 4.29 | 3.80 | 3.64 | — | — | |
| Intuitive Surgical Inc. | 0.56 | 0.48 | 0.45 | — | — | |
| Medtronic PLC | 0.60 | 0.59 | 0.57 | — | — | |
| UnitedHealth Group Inc. | 4.14 | 3.98 | 3.90 | — | — | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 3.09 | 2.81 | 2.73 | — | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 1.97 | 1.91 | 1.89 | — | — | |
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
Equity turnover = Net sales ÷ Stockholders’ equity
= 12,682 ÷ 17,573 = 0.72
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited an overall upward trend from 2018 to 2022. Starting at $9,823 million in 2018, sales increased to $10,735 million in 2019, followed by a slight decline to $9,913 million in 2020. However, sales rebounded strongly in 2021, reaching $11,888 million, and continued to grow, reaching $12,682 million in 2022. This demonstrates recovery and growth in revenue after a dip in 2020.
- Stockholders’ Equity
- Stockholders’ equity showed consistent growth throughout the five-year period. It increased from $8,726 million at the end of 2018 to $13,877 million in 2019, continued to rise to $15,326 million in 2020, then $16,622 million in 2021, and finally reached $17,573 million in 2022. This steady increase indicates a strengthening financial position and accumulation of retained earnings or additional equity financing over time.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently the company uses its equity to generate sales, declined notably from 1.13 in 2018 to 0.77 in 2019, and further down to 0.65 in 2020. After 2020, the ratio stabilized somewhat, recording 0.72 in both 2021 and 2022. This declining trend reflects reduced efficiency in generating sales from equity, especially during 2019 and 2020, with some stabilization in the subsequent years despite the growing equity base.