Edwards Lifesciences Corp., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (as reported)	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Add: Unrealized gain (loss) on available-for-sale investments	(24,100)	6,600)	6,300)	(3,300)	(7,800)
Less: Reclassification of net realized investment loss to earnings	8,600)	300)	400)	2,900)	3,100)
Net income (adjusted)	1,487,600)	830,300)	1,053,600)	721,800)	578,900)

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Edwards Lifesciences Corp., adjusted profitability ratios

	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	28.43%	18.93%	24.23%	19.39%	16.85%
Return on Equity (ROE)
Reported ROE	25.76%	18.00%	25.24%	23.00%	19.74%
Adjusted ROE	25.49%	18.15%	25.40%	22.98%	19.58%
Return on Assets (ROA)
Reported ROA	17.68%	11.38%	16.14%	13.57%	10.25%
Adjusted ROA	17.50%	11.47%	16.24%	13.56%	10.16%

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

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	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,487,600)	830,300)	1,053,600)	721,800)	578,900)
Net sales	5,232,500)	4,386,300)	4,348,000)	3,722,800)	3,435,300)
Profitability Ratio
Adjusted net profit margin²	28.43%	18.93%	24.23%	19.39%	16.85%

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 × 1,487,600 ÷ 5,232,500 = 28.43%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,487,600)	830,300)	1,053,600)	721,800)	578,900)
Stockholders’ equity	5,835,900)	4,574,300)	4,148,300)	3,140,400)	2,956,200)
Profitability Ratio
Adjusted ROE²	25.49%	18.15%	25.40%	22.98%	19.58%

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 ÷ Stockholders’ equity
= 100 × 1,487,600 ÷ 5,835,900 = 25.49%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,487,600)	830,300)	1,053,600)	721,800)	578,900)
Total assets	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)
Profitability Ratio
Adjusted ROA²	17.50%	11.47%	16.24%	13.56%	10.16%

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 ÷ Total assets
= 100 × 1,487,600 ÷ 8,502,600 = 17.50%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by 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. (NYSE:EW)

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