Stock Analysis on Net
Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

This company has been moved to the archive! The financial data has not been updated since February 14, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Edwards Lifesciences Corp., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal 125,200 23,400 31,300 10,900 330,800
State and local 25,100 48,200 48,700 13,600 32,800
United States 150,300 71,600 80,000 24,500 363,600
Outside of the United States, including Puerto Rico 92,600 73,900 29,100 35,900 60,600
Current income tax expense 242,900 145,500 109,100 60,400 424,200
Federal (9,400) 11,000 28,300 (16,100) 39,300
State and local (25,400) (32,900) (18,300) (22,400) (3,800)
United States (34,800) (21,900) 10,000 (38,500) 35,500
Outside of the United States, including Puerto Rico (9,200) (30,300) 500 17,300 (8,400)
Deferred income tax expense (benefit) (44,000) (52,200) 10,500 (21,200) 27,100
Income tax provision 198,900 93,300 119,600 39,200 451,300

Based on: 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).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Edwards Lifesciences Corp. current income tax expense increased from 2019 to 2020 and from 2020 to 2021.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Edwards Lifesciences Corp. deferred income tax expense (benefit) decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Edwards Lifesciences Corp. income tax provision decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

Edwards Lifesciences Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
United States federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate, before impact related to 2017 U.S. Tax Reform 11.69% 10.18% 10.01% 3.07% 15.19%
Effective income tax rate 11.69% 10.18% 10.25% 5.15% 43.61%

Based on: 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).

Item Description The company
Effective income tax rate, before impact related to 2017 U.S. Tax Reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Edwards Lifesciences Corp. effective income tax rate, before impact related to 2017 U.S. Tax Reform increased from 2019 to 2020 and from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Edwards Lifesciences Corp., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Compensation and benefits 109,800 88,600 91,600 71,400 53,900
Benefits from uncertain tax positions 33,900 27,000 22,500 22,200 66,100
Net tax credit carryforwards 142,000 125,500 108,400 94,400 78,800
Net operating loss carryforwards 69,400 64,100 57,600 42,100 47,300
Accrued liabilities 108,000 105,000 6,100 78,800 29,200
Inventories 13,500 16,300 12,900 7,200 6,800
Cash flow and net investment hedges — 3,300 — — 13,300
State income taxes 400 500 500 600 5,800
Investments 700 1,800 1,500 1,600 1,600
Lease liability obligations 6,600 7,700 18,400 — —
Other 1,300 3,600 1,900 4,100 1,700
Deferred tax assets, before valuation allowance 485,600 443,400 321,400 322,400 304,500
Valuation allowance (82,500) (71,600) (65,800) (46,700) (41,600)
Deferred tax assets 403,100 371,800 255,600 275,700 262,900
Property, plant, and equipment (64,100) (53,400) (22,600) (24,500) (20,000)
Cash flow and net investment hedges (6,400) — (6,800) (4,500) —
Deferred tax on foreign earnings (26,300) (29,200) (100) (600) (3,100)
Right-of-use assets (6,100) (7,000) (17,500) — —
Inventories — — — (3,900) (4,200)
Other intangible assets (75,500) (76,300) (71,000) (77,100) (49,500)
Other (2,600) (3,100) (2,200) (100) (100)
Deferred tax liabilities (181,000) (169,000) (120,200) (110,700) (76,900)
Net deferred tax assets (liabilities) 222,100 202,800 135,400 165,000 186,000

Based on: 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).

Item Description The company
Deferred tax assets, before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Edwards Lifesciences Corp. deferred tax assets, before valuation allowance increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Edwards Lifesciences Corp. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Edwards Lifesciences Corp. net deferred tax assets (liabilities) increased from 2019 to 2020 and from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Edwards Lifesciences Corp., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 246,700 230,900 172,200 174,000 213,600
Deferred tax liabilities 24,600 28,100 36,800 9,000 27,600

Based on: 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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Edwards Lifesciences Corp. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Edwards Lifesciences Corp. deferred tax liabilities decreased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

Edwards Lifesciences Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 8,502,600 7,237,100 6,488,100 5,323,700 5,695,800
Less: Noncurrent deferred tax assets, net 246,700 230,900 172,200 174,000 213,600
Total assets (adjusted) 8,255,900 7,006,200 6,315,900 5,149,700 5,482,200
Adjustment to Total Liabilities
Total liabilities (as reported) 2,666,700 2,662,800 2,339,800 2,183,300 2,739,600
Less: Noncurrent deferred tax liabilities, net 24,600 28,100 36,800 9,000 27,600
Total liabilities (adjusted) 2,642,100 2,634,700 2,303,000 2,174,300 2,712,000
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 5,835,900 4,574,300 4,148,300 3,140,400 2,956,200
Less: Net deferred tax assets (liabilities) 222,100 202,800 135,400 165,000 186,000
Stockholders’ equity (adjusted) 5,613,800 4,371,500 4,012,900 2,975,400 2,770,200
Adjustment to Net Income
Net income (as reported) 1,503,100 823,400 1,046,900 722,200 583,600
Add: Deferred income tax expense (benefit) (44,000) (52,200) 10,500 (21,200) 27,100
Net income (adjusted) 1,459,100 771,200 1,057,400 701,000 610,700

Based on: 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).

Edwards Lifesciences Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Edwards Lifesciences Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 28.73% 18.77% 24.08% 19.40% 16.99%
Adjusted net profit margin 27.89% 17.58% 24.32% 18.83% 17.78%
Total Asset Turnover
Reported total asset turnover 0.62 0.61 0.67 0.70 0.60
Adjusted total asset turnover 0.63 0.63 0.69 0.72 0.63
Financial Leverage
Reported financial leverage 1.46 1.58 1.56 1.70 1.93
Adjusted financial leverage 1.47 1.60 1.57 1.73 1.98
Return on Equity (ROE)
Reported ROE 25.76% 18.00% 25.24% 23.00% 19.74%
Adjusted ROE 25.99% 17.64% 26.35% 23.56% 22.05%
Return on Assets (ROA)
Reported ROA 17.68% 11.38% 16.14% 13.57% 10.25%
Adjusted ROA 17.67% 11.01% 16.74% 13.61% 11.14%

Based on: 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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Edwards Lifesciences Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Edwards Lifesciences Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Edwards Lifesciences Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Edwards Lifesciences Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Edwards Lifesciences Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Edwards Lifesciences Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,503,100 823,400 1,046,900 722,200 583,600
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Profitability Ratio
Net profit margin1 28.73% 18.77% 24.08% 19.40% 16.99%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,459,100 771,200 1,057,400 701,000 610,700
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Profitability Ratio
Adjusted net profit margin2 27.89% 17.58% 24.32% 18.83% 17.78%

Based on: 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).

2021 Calculations

1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,503,100 ÷ 5,232,500 = 28.73%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,459,100 ÷ 5,232,500 = 27.89%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Edwards Lifesciences Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Total assets 8,502,600 7,237,100 6,488,100 5,323,700 5,695,800
Activity Ratio
Total asset turnover1 0.62 0.61 0.67 0.70 0.60
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Adjusted total assets 8,255,900 7,006,200 6,315,900 5,149,700 5,482,200
Activity Ratio
Adjusted total asset turnover2 0.63 0.63 0.69 0.72 0.63

Based on: 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).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 5,232,500 ÷ 8,502,600 = 0.62

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 5,232,500 ÷ 8,255,900 = 0.63

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Edwards Lifesciences Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 8,502,600 7,237,100 6,488,100 5,323,700 5,695,800
Stockholders’ equity 5,835,900 4,574,300 4,148,300 3,140,400 2,956,200
Solvency Ratio
Financial leverage1 1.46 1.58 1.56 1.70 1.93
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 8,255,900 7,006,200 6,315,900 5,149,700 5,482,200
Adjusted stockholders’ equity 5,613,800 4,371,500 4,012,900 2,975,400 2,770,200
Solvency Ratio
Adjusted financial leverage2 1.47 1.60 1.57 1.73 1.98

Based on: 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).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 8,502,600 ÷ 5,835,900 = 1.46

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 8,255,900 ÷ 5,613,800 = 1.47

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Edwards Lifesciences Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,503,100 823,400 1,046,900 722,200 583,600
Stockholders’ equity 5,835,900 4,574,300 4,148,300 3,140,400 2,956,200
Profitability Ratio
ROE1 25.76% 18.00% 25.24% 23.00% 19.74%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,459,100 771,200 1,057,400 701,000 610,700
Adjusted stockholders’ equity 5,613,800 4,371,500 4,012,900 2,975,400 2,770,200
Profitability Ratio
Adjusted ROE2 25.99% 17.64% 26.35% 23.56% 22.05%

Based on: 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).

2021 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,503,100 ÷ 5,835,900 = 25.76%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,459,100 ÷ 5,613,800 = 25.99%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Edwards Lifesciences Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,503,100 823,400 1,046,900 722,200 583,600
Total assets 8,502,600 7,237,100 6,488,100 5,323,700 5,695,800
Profitability Ratio
ROA1 17.68% 11.38% 16.14% 13.57% 10.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,459,100 771,200 1,057,400 701,000 610,700
Adjusted total assets 8,255,900 7,006,200 6,315,900 5,149,700 5,482,200
Profitability Ratio
Adjusted ROA2 17.67% 11.01% 16.74% 13.61% 11.14%

Based on: 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).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,503,100 ÷ 8,502,600 = 17.68%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,459,100 ÷ 8,255,900 = 17.67%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Edwards Lifesciences Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.