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 Balance Sheet: Liabilities and Stockholders’ Equity

Edwards Lifesciences Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable 2.41 2.72 2.78 2.52 2.05
Employee compensation and withholdings 3.76 3.27 4.56 4.25 4.38
Accrued rebates 0.91 0.93 1.03 1.50 0.95
Property, payroll, and other taxes 0.81 0.69 0.79 0.74 0.74
Research and development accruals 0.68 0.72 0.79 0.92 0.69
Legal and insurance 0.93 0.84 0.31 3.69 0.26
Taxes payable 0.36 0.26 0.82 0.59 1.72
Fair value of derivatives 0.05 0.54 0.10 0.08 0.44
Accrued marketing expenses 0.24 0.20 0.27 0.42 0.26
Accrued professional services 0.14 0.11 0.16 0.21 0.15
Accrued realignment reserves 0.22 0.20 0.26 0.00 0.14
Accrued relocation costs 0.31 0.29 0.27 0.21 0.15
Other accrued liabilities 1.03 1.22 1.38 1.33 1.30
Accrued and other liabilities 9.44% 9.26% 10.74% 13.95% 11.18%
Operating lease liabilities, current portion 0.30 0.38 0.39 0.00 0.00
Short-term debt 0.00 0.00 0.00 0.00 10.50
Contingent consideration liabilities 0.00 0.00 0.00 0.00 0.91
Current liabilities 12.14% 12.35% 13.91% 16.47% 24.63%
Long-term debt 7.01 8.22 9.16 11.15 7.70
Contingent consideration liabilities 0.73 2.57 2.66 3.35 3.38
Taxes payable 2.23 2.97 3.65 4.87 6.92
Operating lease liabilities, long-term portion 0.81 1.00 0.91 0.00 0.00
Uncertain tax positions 3.05 2.96 2.65 2.35 2.89
Litigation settlement accrual 2.25 3.22 0.00 0.00 0.00
Other liabilities 3.14 3.49 3.13 2.82 2.58
Long-term liabilities 19.22% 24.44% 22.15% 24.54% 23.47%
Total liabilities 31.36% 36.79% 36.06% 41.01% 48.10%
Preferred stock, $.01 par value, no shares outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $1.00 par value 7.55 8.79 3.36 4.04 3.72
Additional paid-in capital 20.00 19.87 25.02 26.00 20.49
Retained earnings 71.37 63.08 57.67 50.62 34.45
Accumulated other comprehensive loss -1.85 -2.23 -2.40 -2.60 -2.33
Treasury stock, at cost -28.43 -26.31 -19.71 -19.07 -4.43
Stockholders’ equity 68.64% 63.21% 63.94% 58.99% 51.90%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure of the organization underwent a significant transformation between 2017 and 2021, characterized by a systematic reduction in total liabilities and a corresponding increase in stockholders' equity. Total liabilities decreased from 48.10% of the total balance sheet in 2017 to 31.36% by 2021, while stockholders' equity expanded from 51.90% to 68.64% over the same period.

Liability Composition and Trends
Current liabilities experienced a consistent downward trend, falling from 24.63% in 2017 to 12.14% in 2021. A primary driver of this decline was the complete elimination of short-term debt, which represented 10.50% of the total balance sheet in 2017 but was absent in subsequent years. Accrued and other liabilities remained relatively stable, fluctuating between 9.26% and 13.95%.
Long-term liabilities decreased from 23.47% in 2017 to 19.22% in 2021. Long-term debt peaked in 2018 at 11.15% before trending downward to 7.01% by 2021. Additionally, contingent consideration liabilities saw a marked reduction, dropping from 3.38% in 2017 to 0.73% in 2021, and long-term taxes payable declined from 6.92% to 2.23%.
Equity Growth and Shareholder Returns
The growth in stockholders' equity was primarily driven by a substantial increase in retained earnings, which rose from 34.45% in 2017 to 71.37% in 2021. This trend indicates a strong capacity for internal capital generation and profit retention.
A significant increase in treasury stock activity is observed, with the contra-equity account moving from -4.43% in 2017 to -28.43% in 2021. This trajectory suggests an aggressive share repurchase strategy during the five-year period.
Additional paid-in capital peaked in 2018 at 26.00% before stabilizing at 20.00% by 2021, while common stock as a percentage of the total balance sheet remained relatively low, ending at 7.55%.
Operational Accruals and Other Obligations
Employee compensation and withholdings remained a consistent component of current liabilities, generally ranging between 3.27% and 4.56%. Uncertain tax positions remained stable, hovering around 3% of the total balance sheet from 2017 through 2021.
A litigation settlement accrual emerged in 2020 at 3.22% and remained a factor in 2021 at 2.25%, representing a new liability component not present in the earlier years of the analysis.

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