Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Boston Scientific Corp., profitability ratios (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).
- Gross Profit Margin
- The gross profit margin shows a gradual declining trend from the first quarter of 2019, starting at 71.12%, and reaching its lowest point in the fourth quarter of 2020 at 65.05%. From early 2021 onwards, the margin demonstrates a moderate recovery, stabilizing around 69.0% by the first quarter of 2023. This indicates some improvement in cost control or pricing power after a period of margin compression.
- Operating Profit Margin
- The operating profit margin exhibits significant volatility over the analyzed period. It starts at 16.5% in March 2019, declines sharply during 2020, turning negative at the end of 2020 (-0.81%). Thereafter, a consistent recovery is observed throughout 2021 and 2022, culminating in positive margins exceeding 13% by the first quarter of 2023. This pattern suggests operational challenges during 2020, possibly related to external pressures, followed by effective management measures to restore profitability.
- Net Profit Margin
- The net profit margin also shows notable fluctuations. It begins at 18.08% in early 2019, peaks at 43.78% at the end of 2019, which appears to be an outlier or influenced by extraordinary items, and declines throughout 2020, turning negative (-0.83%) by year-end 2020. From 2021 forward, net margin trends upward gradually but remains below earlier peaks, reaching 6.91% by March 2023. This pattern reflects profitability impacts, possibly from non-operational factors or one-time events, combined with ongoing recovery efforts.
- Return on Equity (ROE)
- ROE trends mirror those of net profit margin, with an initial decline from 19.46% in March 2019 to a negative value of -0.54% in December 2020. Subsequently, a gradual improvement is evident, with ROE returning to positive territory and advancing to 5.05% in the first quarter of 2023. This indicates a recovery in the company’s ability to generate shareholder returns after a challenging period.
- Return on Assets (ROA)
- The return on assets declines from 7.55% in the first quarter of 2019 to -0.27% in the final quarter of 2020. Since then, ROA has modestly improved, reaching 2.74% by March 2023. This suggests a similar pattern of asset utilization efficiency being impacted negatively during 2020 but improving moderately thereafter.
- Summary
- Across the evaluated financial ratios, a consistent multi-quarter downturn is evident from early 2019 into late 2020, with margins and returns experiencing significant deterioration, including episodes of negative profitability and returns. Beginning in 2021, recovery and stabilization efforts appear to have been successful, as indicated by gradually improving margins and returns continuing into early 2023. The gross profit margin shows resilience relative to operating and net profitability, implying that challenges were notably reflected in operating expenses and other non-gross cost areas during the downturn period. Overall, while profitability and efficiency have yet to reach pre-2019 levels consistently, positive trends suggest improving operational and financial health.
Return on Sales
Return on Investment
Gross Profit Margin
Boston Scientific Corp., gross profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 2,349) | 2,232) | 2,191) | 2,233) | 2,071) | 2,155) | 2,032) | 2,132) | 1,858) | 1,709) | 1,790) | 1,212) | 1,737) | 2,054) | 1,930) | 1,873) | 1,763) | ||||||
| Net sales | 3,389) | 3,242) | 3,170) | 3,244) | 3,026) | 3,127) | 2,932) | 3,077) | 2,752) | 2,708) | 2,659) | 2,003) | 2,543) | 2,904) | 2,707) | 2,631) | 2,493) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 69.03% | 68.81% | 68.83% | 68.87% | 68.99% | 68.78% | 67.41% | 66.89% | 64.90% | 65.05% | 67.20% | 68.26% | 70.41% | 70.98% | 71.20% | 71.33% | 71.12% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 50.66% | 51.54% | 52.60% | 53.54% | 52.44% | 52.21% | 52.01% | 50.69% | 51.25% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 16.90% | 16.79% | 16.85% | 16.79% | 16.89% | 17.09% | 17.30% | 17.57% | 19.38% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 66.86% | 67.44% | 67.77% | 68.16% | 68.84% | 69.32% | 69.12% | 68.69% | 66.48% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 67.61% | 67.98% | 67.89% | 67.39% | 66.53% | 65.19% | 63.85% | 64.57% | 65.76% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 24.20% | 24.09% | 23.74% | 23.51% | 23.31% | 23.60% | 23.75% | 23.80% | 25.79% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Gross profit margin = 100
× (Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (2,349 + 2,232 + 2,191 + 2,233)
÷ (3,389 + 3,242 + 3,170 + 3,244)
= 69.03%
2 Click competitor name to see calculations.
The financial data indicates several notable trends in the company's quarterly performance, particularly in gross profit, net sales, and gross profit margin over the observed periods.
- Gross Profit
- Gross profit experienced fluctuations throughout the timeline. Initially, there was a general upward trend from early 2019 to the end of that year, peaking at 2,054 million USD in the fourth quarter of 2019. However, a significant decline occurred during the first half of 2020, with gross profit dropping to as low as 1,212 million USD by the second quarter of 2020, likely reflecting challenging market conditions. A recovery phase followed in late 2020 through 2021, with gross profits gradually increasing and reaching 2,155 million USD by the final quarter of 2021. This upward momentum continued into 2022 and early 2023, culminating in the highest reported gross profit of 2,349 million USD in the first quarter of 2023.
- Net Sales
- Net sales displayed a parallel pattern to gross profit, with an increase from 2,493 million USD in the first quarter of 2019 to 2,904 million USD by the end of 2019. The first half of 2020 saw a marked decrease, falling to 2,003 million USD in the second quarter, corresponding with the reduction in gross profit. Following this downturn, net sales steadily improved, surpassing previous peaks by the end of 2021 and continuing to rise through 2022. The first quarter of 2023 showed net sales reaching 3,389 million USD, representing the highest level in the recorded period.
- Gross Profit Margin
- The gross profit margin showed a gradual declining trend from over 71% in early 2019 to a low near 65% by the end of 2020. This decline suggests increased cost pressures or changes in product mix impacting profitability. From 2021 onwards, the gross profit margin rebounded moderately, stabilizing around 69% by the first quarter of 2023. Despite recovery, the margin did not return to the earlier peak levels observed in 2019.
Overall, the data reflects a period of disruption in 2020, with both gross profit and net sales declining significantly, followed by a steady recovery phase through 2021 to early 2023. The gross profit margin trend implies that while revenue levels and absolute profit grew, profitability relative to sales experienced pressure but showed signs of improvement in recent quarters.
Operating Profit Margin
Boston Scientific Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income (loss) | 552) | 402) | 358) | 423) | 466) | 180) | 387) | 262) | 370) | 50) | (205) | (71) | 146) | 210) | 383) | 384) | 541) | ||||||
| Net sales | 3,389) | 3,242) | 3,170) | 3,244) | 3,026) | 3,127) | 2,932) | 3,077) | 2,752) | 2,708) | 2,659) | 2,003) | 2,543) | 2,904) | 2,707) | 2,631) | 2,493) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 13.30% | 13.00% | 11.36% | 11.81% | 10.65% | 10.09% | 9.32% | 4.26% | 1.42% | -0.81% | 0.79% | 6.58% | 10.41% | 14.14% | 15.66% | 16.19% | 16.50% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 16.77% | 19.16% | 20.95% | 22.42% | 20.73% | 19.56% | 20.04% | 18.46% | 17.97% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 4.99% | 4.94% | 5.01% | 5.07% | 5.10% | 5.15% | 4.91% | 3.68% | 4.83% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 24.21% | 25.35% | 27.05% | 28.48% | 30.69% | 31.89% | 32.55% | 31.27% | 26.01% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 19.37% | 18.15% | 17.89% | 16.68% | 14.78% | 14.89% | 11.44% | 12.77% | 14.25% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 8.87% | 8.83% | 8.65% | 8.32% | 8.19% | 8.40% | 7.91% | 7.73% | 9.24% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022
+ Operating income (loss)Q3 2022
+ Operating income (loss)Q2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (552 + 402 + 358 + 423)
÷ (3,389 + 3,242 + 3,170 + 3,244)
= 13.30%
2 Click competitor name to see calculations.
The analysis of the quarterly financial performance reveals several notable trends in operating income, net sales, and operating profit margin over the examined periods.
- Operating Income (Loss)
- Operating income exhibited significant fluctuations throughout the time frame. Initially, in early 2019, operating income was robust, peaking at 541 million USD in the first quarter and then declining steadily to 210 million USD by the fourth quarter of 2019. A sharp decline was observed in early 2020 with operating income turning negative in the second and third quarters (-71 million USD and -205 million USD, respectively), indicating operational challenges or increased costs during this period. Recovery began in the fourth quarter of 2020, continuing into 2021, with operating income progressively improving and reaching 387 million USD by the third quarter of 2021. The upward trend persisted in subsequent quarters, culminating in a high of 552 million USD in the first quarter of 2023, surpassing previous peaks.
- Net Sales
- Net sales displayed a generally positive trajectory over the periods analyzed. Starting at 2,493 million USD in the first quarter of 2019, sales increased moderately throughout 2019 to reach 2,904 million USD by year-end. The onset of 2020 showed volatility with a notable decline in the second quarter (2,003 million USD), likely indicative of market disruptions, followed by a rebound in the latter half of the year. From 2021 onwards, net sales demonstrated consistent growth, advancing from 2,752 million USD at the start of 2021 to 3,389 million USD by the first quarter of 2023. This gradual increase points to steady revenue expansion and improved market conditions.
- Operating Profit Margin
- The operating profit margin reflected the trends observed in operating income. Margins began at a strong 16.5% in early 2019 and then declined throughout the year, falling to around 14.14% by the end of 2019. Early 2020 marked a significant contraction in profitability margins, dropping sharply to 6.58% and further to nearly zero and negative territory in the second half of 2020 (-0.81% in the fourth quarter). Margins recovered in 2021, climbing from a low of 1.42% in the first quarter to 10.09% by the fourth quarter. The recovery trend strengthened into 2022 and early 2023, achieving a peak margin of 13.3% in the first quarter of 2023, signaling improved operational efficiency and cost control.
Overall, the data illustrates a pattern of initial strong performance followed by significant operational and sales challenges during 2020. Subsequently, the company demonstrated resilience with signs of recovery and growth from late 2020 through early 2023. In particular, the return to positive operating income and rising profit margins alongside growing net sales highlights an effective turnaround and strengthening market position over the latter part of the analyzed period.
Net Profit Margin
Boston Scientific Corp., net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) | 314) | 140) | 188) | 260) | 110) | 95) | 419) | 186) | 341) | 209) | (155) | (147) | 11) | 3,996) | 126) | 154) | 424) | ||||||
| Net sales | 3,389) | 3,242) | 3,170) | 3,244) | 3,026) | 3,127) | 2,932) | 3,077) | 2,752) | 2,708) | 2,659) | 2,003) | 2,543) | 2,904) | 2,707) | 2,631) | 2,493) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 6.91% | 5.50% | 5.20% | 7.17% | 6.66% | 8.76% | 10.07% | 5.19% | 2.45% | -0.83% | 36.65% | 39.24% | 39.75% | 43.78% | 10.49% | 13.85% | 18.08% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 13.98% | 15.88% | 17.52% | 18.78% | 17.35% | 16.42% | 17.12% | 15.85% | 15.33% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 3.89% | 3.87% | 4.09% | 4.13% | 4.37% | 4.46% | 4.17% | 3.32% | 3.82% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 20.40% | 21.25% | 22.52% | 24.05% | 27.84% | 29.85% | 30.78% | 31.43% | 25.78% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 16.75% | 15.90% | 15.46% | 14.79% | 12.29% | 11.97% | 10.36% | 12.69% | 15.80% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 6.21% | 6.25% | 6.21% | 5.99% | 5.91% | 6.06% | 5.56% | 5.37% | 6.46% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (314 + 140 + 188 + 260)
÷ (3,389 + 3,242 + 3,170 + 3,244)
= 6.91%
2 Click competitor name to see calculations.
The financial performance over the analyzed quarters exhibits notable fluctuations in net income, net sales, and net profit margin.
- Net Income (Loss)
- The net income showed considerable variability, starting with a positive value in early 2019, followed by a significant spike at the end of 2019. Subsequently, the income experienced a sharp decline in the first half of 2020, registering losses in two consecutive quarters. Recovery was observed in late 2020 and throughout 2021, with income generally maintaining a positive range, although with some volatility. In 2022 and early 2023, net income displayed moderate fluctuations but remained in positive territory, suggesting a degree of stabilization after the earlier period of losses.
- Net Sales
- Net sales demonstrated an overall upward trend across the observed period. Starting from approximately 2.5 billion USD in early 2019, sales generally increased with some cyclical quarter-to-quarter variations. Despite a notable decline during the mid-2020 period, sales rebounded strongly later in 2020 and continued to grow through 2021, reaching over 3.2 billion USD by early 2023. This growth indicates resilience and expansion in sales activity over the years.
- Net Profit Margin
- The net profit margin experienced significant oscillations. In 2019, margins ranged from about 10% to a peak above 40% in the fourth quarter. The margin then decreased sharply, even turning negative in the final quarter of 2020, coinciding with net income losses in this period. Throughout 2021 and into 2023, the margin stabilized within a lower range of approximately 2.5% to nearly 11%, reflecting moderate profitability relative to sales. The decrease from the exceptionally high margin in 2019 indicates increased cost pressures or higher expenses impacting profitability despite rising sales volumes.
In summary, the data reveals a period marked by initial profitability, an interim phase of income volatility and losses, followed by gradual recovery and stabilization in profitability metrics. Sales growth has been consistent overall, suggesting strong market demand or expanded operations, while profitability margins have faced margin compression from earlier highs, highlighting potential challenges in cost management or competitive pressures.
Return on Equity (ROE)
Boston Scientific Corp., ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) | 314) | 140) | 188) | 260) | 110) | 95) | 419) | 186) | 341) | 209) | (155) | (147) | 11) | 3,996) | 126) | 154) | 424) | ||||||
| Stockholders’ equity | 17,850) | 17,573) | 17,640) | 17,251) | 16,735) | 16,622) | 16,461) | 15,942) | 15,719) | 15,326) | 15,564) | 15,616) | 13,804) | 13,877) | 9,699) | 9,425) | 9,233) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 5.05% | 3.97% | 3.70% | 5.12% | 4.84% | 6.26% | 7.02% | 3.64% | 1.58% | -0.54% | 23.80% | 25.53% | 31.06% | 33.87% | 11.24% | 14.81% | 19.46% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 15.68% | 18.90% | 22.11% | 23.44% | 21.82% | 19.75% | 21.04% | 18.86% | 17.06% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 16.62% | 16.59% | 17.26% | 17.04% | 17.36% | 16.93% | 15.44% | 12.10% | 13.92% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 11.70% | 11.98% | 11.97% | 11.93% | 13.58% | 14.32% | 14.80% | 14.97% | 11.56% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 9.88% | 9.59% | 9.35% | 9.05% | 7.54% | 7.01% | 5.70% | 7.05% | 8.77% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 25.46% | 25.87% | 26.03% | 25.07% | 23.98% | 24.09% | 21.95% | 21.03% | 25.42% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
ROE = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Stockholders’ equity
= 100 × (314 + 140 + 188 + 260)
÷ 17,850 = 5.05%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data indicates significant fluctuations in profitability and a general upward trend in stockholders' equity over the examined periods.
- Net Income (Loss)
-
The net income exhibited notable volatility. Initially, there was a strong performance with a peak of 3,996 million US dollars in December 2019. However, this was followed by sharp declines in 2020, including negative net income values in the second and third quarters (-147 million and -155 million US dollars respectively). Post-2020, the company experienced a recovery trend with net income returning to positive territory and gradually increasing, reaching 314 million US dollars by March 2023. Despite this recovery, the net income levels remained considerably lower than the peak observed in late 2019.
- Stockholders’ Equity
-
Stockholders’ equity demonstrated consistent growth throughout the period. Starting from 9,233 million US dollars in March 2019, it increased steadily to 17,850 million US dollars by March 2023. This indicates a strengthening of the company’s equity base, reflecting accumulated earnings retained within the company or additional equity injections. The growth appeared relatively stable without significant contractions, suggesting financial resilience over the span analyzed.
- Return on Equity (ROE)
-
The return on equity showed a declining trend from a high of 33.87% in December 2019 down to a series of lower values through 2020 and 2021. The lowest ROE was recorded at -0.54% in December 2020, coinciding with the period of net losses. Subsequently, ROE recovered slightly, fluctuating between approximately 3.7% and 7.02% in the following quarters up to March 2023. Although there was some improvement, the ROE remained significantly below the high levels observed before 2020, indicating reduced efficiency in generating profits relative to equity.
In summary, the company experienced a period of exceptional profitability followed by a downturn corresponding to early 2020, likely influenced by external or internal factors leading to losses. Despite these challenges, the company maintained steady growth in stockholders' equity, which helped stabilize its financial position. Profitability metrics, including net income and ROE, have shown recovery but have not yet returned to pre-2020 levels, suggesting cautious optimism about ongoing improvements in operational performance.
Return on Assets (ROA)
Boston Scientific Corp., ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) | 314) | 140) | 188) | 260) | 110) | 95) | 419) | 186) | 341) | 209) | (155) | (147) | 11) | 3,996) | 126) | 154) | 424) | ||||||
| Total assets | 32,892) | 32,469) | 31,947) | 32,189) | 32,337) | 32,229) | 31,877) | 31,168) | 30,900) | 30,777) | 30,845) | 30,823) | 30,113) | 30,565) | 26,756) | 24,309) | 23,802) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 2.74% | 2.15% | 2.04% | 2.75% | 2.50% | 3.23% | 3.62% | 1.86% | 0.80% | -0.27% | 12.01% | 12.93% | 14.24% | 15.38% | 4.07% | 5.74% | 7.55% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 7.87% | 9.31% | 10.84% | 11.53% | 10.44% | 9.40% | 9.82% | 8.70% | 7.86% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 5.69% | 5.86% | 6.03% | 6.05% | 6.21% | 6.26% | 5.63% | 4.40% | 4.93% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 10.05% | 10.19% | 10.39% | 10.47% | 12.02% | 12.58% | 13.06% | 13.20% | 10.17% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 5.79% | 5.54% | 5.35% | 5.13% | 4.23% | 3.87% | 2.97% | 3.69% | 4.70% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 7.30% | 8.19% | 7.99% | 7.93% | 7.89% | 8.15% | 7.24% | 6.90% | 8.23% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
ROA = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Total assets
= 100 × (314 + 140 + 188 + 260)
÷ 32,892 = 2.74%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and shifts over the observed periods.
- Net Income (Loss)
- Net income initially exhibited substantial fluctuations, starting at a high point in early 2019 with a peak near the end of that year. This was followed by a significant decline and periods of negative income during 2020, reflecting volatility possibly due to extraordinary events or operational challenges. Following this downturn, there has been a gradual recovery in 2021 and 2022, with net income becoming positive again and showing signs of improvement toward early 2023, although still at levels below the 2019 peak.
- Total Assets
- Total assets displayed an overall upward trajectory throughout the entire period. The asset base steadily increased from 23,802 million US dollars in early 2019 to approximately 32,892 million US dollars by the first quarter of 2023. This growth signifies expansion or accumulation of resources over time, with relatively minor fluctuations noted in some quarters but no significant declines.
- Return on Assets (ROA)
- ROA followed a pattern consistent with net income trends. It started relatively strong in early 2019, peaking at 15.38% toward the end of that year, indicating efficient utilization of assets to generate profits. Subsequently, ROA declined sharply and even turned negative by the end of 2020, which corresponds to the period of negative net income. From 2021 onwards, ROA progressively improved, rising from slightly below 1% to around 2.74% by the first quarter of 2023, reflecting a recovery in profitability relative to the asset base, although it remains below the earlier high levels.