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.

Common-Size Income Statement 
Quarterly Data

Edwards Lifesciences Corp., common-size consolidated income statement (quarterly data)

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3 months ended: 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 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -23.28 -23.79 -24.30 -24.12 -24.86 -24.63 -25.75 -23.49 -24.38 -26.73 -27.97 -23.34 -24.01 -24.81 -26.09 -26.11 -26.48 -25.96 -25.08 -24.40
Gross profit 76.72% 76.21% 75.70% 75.88% 75.14% 75.37% 74.25% 76.51% 75.62% 73.27% 72.03% 76.66% 75.99% 75.19% 73.91% 73.89% 73.52% 74.04% 74.92% 75.60%
Selling, general, and administrative expenses -31.89 -27.81 -27.22 -27.19 -28.40 -26.93 -29.72 -27.27 -29.57 -27.99 -28.38 -28.23 -29.47 -29.73 -29.13 -28.61 -30.02 -29.77 -28.96 -25.99
Research and development expenses -17.51 -18.17 -16.37 -17.01 -16.42 -17.14 -19.69 -16.60 -16.51 -17.87 -17.66 -17.26 -16.68 -17.85 -16.33 -16.00 -16.50 -17.40 -15.97 -14.57
Intellectual property litigation income (expenses), net -0.53 -0.36 -0.17 -0.53 -0.39 -0.74 -41.07 -1.11 -1.18 -0.72 -0.64 -0.46 -19.93 -0.87 -0.58 -0.64 11.81 -1.67 -0.91 -1.15
Change in fair value of contingent consideration liabilities 1.36 -0.08 7.46 0.37 -0.44 0.79 -2.12 0.19 1.58 0.21 -0.74 -0.67 1.43 0.71 -1.16 -0.42 -0.29 2.03 -0.37 -0.12
Special charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3.46 0.00 0.00 -2.42 -11.89 0.00 0.00 0.00 0.00 -1.18 0.00 0.00
Other operating expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.08 0.00
Operating income (loss) 28.16% 29.79% 39.40% 31.52% 29.49% 31.36% -18.35% 31.73% 26.47% 26.90% 24.61% 27.61% -0.54% 27.45% 26.71% 28.22% 38.51% 26.05% 28.63% 33.76%
Interest income (expense), net 0.04 -0.06 -0.07 0.02 0.04 0.07 0.19 0.40 0.37 0.26 0.22 0.20 0.18 -0.06 0.00 0.09 0.11 -0.01 -0.17 -0.27
Special gains (charges), net 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.79 -2.08 -0.06 -3.71 0.00
Other income (expense), net 0.11 0.11 0.32 0.45 0.35 0.50 -0.03 0.17 0.03 0.42 0.13 0.18 0.17 0.03 -0.12 0.35 -0.09 -0.19 -0.33 -0.26
Income (loss) before (provision for) benefit from income taxes 28.30% 29.84% 39.64% 32.00% 29.88% 31.93% -18.18% 32.29% 26.87% 27.58% 24.96% 28.00% -0.18% 27.43% 26.60% 29.45% 36.45% 25.78% 24.42% 33.23%
(Provision for) benefit from income taxes -3.08 -3.88 -4.07 -4.20 -3.91 -3.43 5.01 -4.78 -3.01 -2.47 -2.67 -2.85 0.90 -2.51 3.36 -6.36 -36.77 -5.08 -2.32 -7.18
Net income (loss) 25.22% 25.96% 35.57% 27.80% 25.97% 28.50% -13.18% 27.52% 23.87% 25.11% 22.29% 25.15% 0.72% 24.92% 29.96% 23.09% -0.32% 20.71% 22.11% 26.06%

Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Gross Profit and Cost of Sales
The gross profit margin has generally remained stable, fluctuating between approximately 72% and 77% of net sales over the periods analyzed. Notably, the gross profit margin peaked around 2019 and 2020, with values reaching over 76%, indicating improved efficiency or favorable product mix during these quarters. Conversely, the cost of sales as a percentage of net sales exhibited an inverse pattern, declining from around 26.5% in early 2017 to approximately 23-24% in recent periods, contributing positively to gross profit margin trends.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses as a percentage of net sales showed some volatility but generally have trended downward from above 30% in late 2017 to near 27-28% in most recent quarters. This decline suggests increased control over operating expenses or economies of scale as net sales remained constant at 100%. However, a spike to nearly 32% was observed in the last quarter of 2021, indicating a temporary increase in operating expenses during that period.
Research and Development (R&D) Expenses
R&D expenses steadily accounted for roughly 16-18% of net sales, with occasional peaks close to 19%, particularly in mid-2020 and late 2021. The consistent investment in R&D reflects the company's focus on innovation and development, with some fluctuation potentially linked to project cycles or strategic initiatives.
Intellectual Property Litigation Income (Expenses), Net
This category reveals occasional significant negative impacts, most markedly a sharp decline to -41.07% in mid-2020 and -19.93% in late 2018. These large negative values suggest considerable litigation-related costs or settlements during these quarters, adversely affecting operating results temporarily.
Special Charges
Special charges appeared sporadically, including notable negative spikes such as -11.89% during the first quarter of 2019 and moderate charges around -3.46% in the first quarter of 2020. These charges likely represent one-time costs or restructuring expenses impacting specific quarters rather than ongoing operations.
Operating Income (Loss)
Operating income exhibited variations aligned with fluctuations in other expense categories, ranging mostly between 24% and 33% of net sales. Except for a pronounced operating loss of -0.54% in the last quarter of 2018 and a steep decline to -18.35% mid-2020, operating income remained solid, underscoring overall operational profitability. The significant losses in these periods correlate with the observed litigation expenses and special charges.
Interest Income (Expense), Net
Interest income and expense remained minimal throughout the periods, mostly close to zero and occasionally positive or slightly negative, indicating limited impact from financing costs on profitability.
Other Income (Expense), Net
Other income and expenses fluctuated near zero, showing minor positive or negative contributions without significant impact on overall results.
Income Before Taxes and Tax Provision
Income before income taxes largely mirrored operating income, with values typically within the 24-33% range. Tax provisions varied dramatically, including notable negative tax effects occurring in late 2017 and mid-2020, occasionally showing positive tax benefits that offset some income before taxes losses. These fluctuations suggest variable tax treatments or credits impacting net profitability in certain quarters.
Net Income
Net income as a percentage of net sales followed similar trends to operating income, ranging mostly between 20% and 28%. However, the company experienced periods of diminished profitability, including a near break-even performance in the final quarter of 2017 and a sharp loss in mid-2020. Subsequently, net income rebounded, reaching a high of approximately 35.6% in the last quarter of 2021, reflecting recovery and potential operational improvements post-challenges faced earlier.