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).

Liabilities Trend
The proportion of total liabilities relative to total liabilities and stockholders' equity shows a consistent decline over the analyzed period, decreasing from 48.10% in 2017 to 31.36% in 2021. Both current liabilities and long-term liabilities decreased contributing to this overall trend. Current liabilities fell from 24.63% to 12.14%, while long-term liabilities decreased from 23.47% to 19.22%. This reduction indicates a gradual deleveraging or a shift in capital structure.
Current Liabilities Composition
Among current liabilities, accounts payable increased slightly from 2.05% in 2017 peaking at 2.78% in 2019 before declining to 2.41% in 2021. Employee compensation and withholdings showed variability, decreasing notably in 2020 (3.27%) before rising again to 3.76% in 2021. Accrued rebates fell after a peak in 2018 (1.50%) to 0.91% by 2021. Other components such as accrued marketing expenses and accrued professional services remained relatively stable at low percentages. The presence of short-term debt was only noted in 2017 (10.50%), after which it is absent, indicating potential repayment or reclassification.
Long-term Liabilities Composition
Long-term debt declined from 7.70% to 7.01%, with fluctuations in contingent consideration liabilities, which significantly dropped from 3.38% in 2017 to 0.73% in 2021. Taxes payable and uncertain tax positions showed a steady decrease and subsequent stabilization, respectively. The addition of operating lease liabilities post-2019, both current and long-term portions, suggests recognition of lease obligations under updated accounting standards, though these remain a relatively small component.
Stockholders' Equity Evolution
Stockholders’ equity increased steadily over the period, rising from 51.90% to 68.64%. This increase is primarily driven by substantial growth in retained earnings, which climbed from 34.45% in 2017 to 71.37% in 2021, indicating accumulated profitability. Common stock as a proportion of total financing experienced fluctuations, notably increasing sharply in 2020. Additional paid-in capital remained relatively stable around 20-26%. Treasury stock at cost expanded as a negative component, increasing the magnitude of shares repurchased and held by the company, moving from -4.43% to -28.43%, reflecting significant buyback activity. Accumulated other comprehensive loss decreased in absolute negative percentage terms, indicating a slight reduction in unrealized losses or adjustments.
Other Observations
There was a notable spike in legal and insurance accruals in 2018 (3.69%) followed by a return to lower levels, which could suggest a one-time legal event or settlement during that year. Litigation settlement accruals appeared only in 2020 and 2021 with values of 3.22% and 2.25%, respectively, likely related to legal contingencies. Various minor accrued liabilities such as realignment reserves and relocation costs showed modest upward trends, reflecting ongoing operational adjustments.
Overall Financial Position
The data suggests a strengthening financial position with increased equity financing and reduction of liabilities relative to total financing. The significant increase in retained earnings signals improving profitability or earnings retention. The reduction in liabilities alongside growing equity and active treasury stock indicates enhanced capitalization and shareholder value return efforts. The recorded lease liabilities from 2019 onwards indicate compliance with updated accounting standards affecting reported liabilities.