Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Boston Scientific Corp., profitability 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).
- Gross profit margin
- The gross profit margin experienced a gradual decline from 71.37% in 2018 to 65.05% in 2020, suggesting increased cost of goods sold or pricing pressures during this period. However, it showed a partial recovery afterward, improving to approximately 68.8% by 2021 and 2022, indicating some stabilization in gross profitability.
- Operating profit margin
- The operating profit margin followed a downward trend from 15.33% in 2018 to 14.14% in 2019 and further dipped sharply to a negative margin of -0.81% in 2020. This reflects significant operational challenges or increased operating expenses in 2020. Post-2020, the margin rebounded to double-digit positive figures, reaching 10.09% in 2021 and improving further to 13% in 2022, suggesting effective cost management or revenue growth.
- Net profit margin
- The net profit margin exhibited considerable volatility, increasing markedly to 43.78% in 2019, possibly due to non-recurring gains or extraordinary items. It then plummeted to -0.83% in 2020, reflecting a loss in that year, before recovering to 8.76% in 2021 and settling at 5.5% in 2022. Despite the recovery, the net margin in recent years remains below the elevated level observed in 2019, indicating ongoing profitability challenges.
- Return on equity (ROE)
- ROE mirrored the net profit margin trend, rising significantly from 19.15% in 2018 to 33.87% in 2019, then dropping into negative territory at -0.54% in 2020. This was followed by a partial recovery to 6.26% in 2021 and a slight decline to 3.97% in 2022. This pattern suggests variability in equity efficiency and profitability generation over the period.
- Return on assets (ROA)
- ROA increased from 7.96% in 2018 to 15.38% in 2019, then fell to -0.27% in 2020, indicating a loss-generating year with negative asset returns. It subsequently improved to 3.23% in 2021 but decreased to 2.15% in 2022. Overall, the trend underscores an unstable asset utilization performance over the timeframe.
Return on Sales
Return on Investment
Gross Profit Margin
Boston Scientific Corp., gross profit margin 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) | ||||||
| Gross profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit experienced fluctuations over the observed period. It increased from 7,011 million US dollars in 2018 to 7,620 million in 2019, then declined to 6,448 million in 2020. Subsequently, it rose again to 8,177 million in 2021 and reached 8,727 million in 2022, showing a general upward trend with a dip in 2020.
- Net Sales
- Net sales followed a similar trajectory. Starting at 9,823 million US dollars in 2018, there was an increase to 10,735 million in 2019. This was followed by a decrease to 9,913 million in 2020. The figures then rose steadily to 11,888 million in 2021 and 12,682 million in 2022, reflecting a recovery and growth after the decline in 2020.
- Gross Profit Margin
- The gross profit margin showed a downward trend initially, decreasing from 71.37% in 2018 to 70.98% in 2019 and then more notably to 65.05% in 2020. It improved to 68.78% in 2021 and slightly increased to 68.81% in 2022. This indicates some margin compression in 2020 followed by partial recovery in subsequent years.
Operating Profit Margin
Boston Scientific Corp., operating profit margin 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) | ||||||
| Operating income (loss) | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Health Care | ||||||
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
Operating profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrated variability over the analyzed period. It increased slightly from 1506 million USD in 2018 to 1518 million USD in 2019, then sharply declined to a loss of 80 million USD in 2020. This loss was followed by a recovery in 2021, with operating income rising to 1199 million USD, and continued growth in 2022, reaching 1649 million USD, the highest level reported in the five-year span.
- Net Sales
- Net sales showed an overall upward trend with some fluctuations. Sales increased from 9823 million USD in 2018 to a peak of 10735 million USD in 2019, followed by a decline to 9913 million USD in 2020. Afterward, net sales grew steadily, reaching 11888 million USD in 2021 and further increasing to 12682 million USD in 2022, marking the highest sales volume in the period.
- Operating Profit Margin
- Operating profit margin experienced significant changes over the years. It started at 15.33% in 2018 and decreased to 14.14% in 2019. In 2020, the margin turned negative to -0.81%, indicating operational challenges during that year. Margins recovered in the subsequent years, reaching 10.09% in 2021 and rising again to 13% in 2022, which suggests improving operational efficiency and profitability after the downturn in 2020.
- Overall Trends
- The data indicates that 2020 was a notably difficult year, marked by decreased net sales, an operating loss, and negative profit margin. However, the company demonstrated resilience, with a strong recovery in both sales and profitability in 2021 and 2022. By 2022, key financial metrics exceeded previous highs from 2018 and 2019, reflecting improved operational performance and growth trajectory.
Net Profit Margin
Boston Scientific Corp., net profit margin 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 income (loss) | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Profit Margin, Industry | ||||||
| Health Care | ||||||
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 profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited significant fluctuations over the period analyzed. It increased sharply from $1,671 million in 2018 to a peak of $4,700 million in 2019. However, in 2020, there was a notable decline resulting in a net loss of $82 million. Following this loss, net income recovered to $1,041 million in 2021 but decreased again to $698 million in 2022. This pattern indicates substantial volatility in earnings during the five-year span.
- Net Sales
- Net sales demonstrated a generally increasing trend. Starting at $9,823 million in 2018, sales increased to $10,735 million in 2019, then decreased slightly in 2020 to $9,913 million. After this dip, sales rose steadily, reaching $11,888 million in 2021 and $12,682 million in 2022. This upward trajectory, except for the 2020 decline, suggests growth in revenue generation capacity over the longer term.
- Net Profit Margin
- The net profit margin mirrored the fluctuations observed in net income. It was relatively strong at 17.01% in 2018 and peaked at an exceptional 43.78% in 2019. The margin then deteriorated sharply to negative 0.83% in 2020, reflecting the net loss incurred that year. In subsequent years, the margin recovered modestly to 8.76% in 2021 before declining again to 5.5% in 2022. The pattern indicates periods of profitability challenges interspersed with recovery, with overall margin levels in later years below those seen at the start of the period.
- Overall Analysis
- Throughout the five-year period, the company experienced considerable volatility in profitability despite generally increasing net sales. The sharp profit decline and net loss in 2020 suggest operational or external challenges affecting earnings capacity during that period. While revenues rebounded post-2020 and continued to grow, profitability did not fully return to earlier peak levels, indicating potential margin pressures or increased costs. Continuous monitoring of both revenue growth and margin stability is advisable to assess long-term financial health.
Return on Equity (ROE)
Boston Scientific Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROE, Industry | ||||||
| Health Care | ||||||
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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited significant fluctuation over the five-year period. It increased sharply from $1,671 million in 2018 to $4,700 million in 2019, representing a strong profitability surge. However, in 2020, the company experienced a net loss of $82 million, indicating a substantial downturn. Subsequently, profitability recovered in 2021 with net income rebounding to $1,041 million, followed by a decline to $698 million in 2022. This pattern suggests volatility in earnings with intermittent recovery phases.
- Stockholders’ Equity
- Stockholders’ equity displayed a consistent upward trend throughout the period. Beginning at $8,726 million in 2018, equity increased steadily each year, reaching $17,573 million by the end of 2022. This growth indicates accumulation of retained earnings and possibly additional capital contributions, reflecting strengthening financial stability over time.
- Return on Equity (ROE)
- The return on equity followed a variable trajectory, closely mirroring the fluctuations in net income. Starting at 19.15% in 2018, ROE peaked at 33.87% in 2019, before dropping sharply to -0.54% in 2020, consistent with the net loss recorded that year. Subsequently, ROE recovered to 6.26% in 2021 but declined again to 3.97% in 2022. These shifts indicate challenges in generating returns relative to equity during the period, particularly in the years affected by losses and lower profitability.
Return on Assets (ROA)
Boston Scientific Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROA, Industry | ||||||
| Health Care | ||||||
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net income (loss)
- The net income demonstrated significant volatility over the analyzed period. It increased substantially from 1,671 million US dollars in 2018 to a peak of 4,700 million in 2019. However, there was a sharp decrease in 2020 leading to a negative net income of -82 million, indicating a loss for that year. The net income recovered in subsequent years, reaching 1,041 million in 2021 and then declining again to 698 million in 2022. This pattern suggests a period of instability and recovery with no consistent upward or downward trend.
- Total assets
- Total assets showed a steady increase throughout the five-year span. Beginning at 20,999 million US dollars in 2018, assets rose to 30,565 million in 2019 and maintained an upward trajectory, reaching 32,469 million by the end of 2022. The incremental growth in total assets indicates ongoing investment or acquisition activity, contributing to the expansion of the company’s asset base.
- Return on Assets (ROA)
- ROA fluctuated in line with net income trends but presented generally lower percentages over time. It started at 7.96% in 2018, peaked considerably at 15.38% in 2019, and then declined sharply to a negative value of -0.27% in 2020, reflecting the net loss during that year. The ROA partially recovered to 3.23% in 2021 but decreased again to 2.15% by 2022. This indicates a reduction in asset profitability over the period, with 2020 being a year of particularly poor returns.