Return on Equity (ROE)
since 2005
Calculation
Edwards Lifesciences Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 25.76% | = | 100 | × | 1,503,100) | ÷ | 5,835,900) |
| Dec 31, 2020 | 18.00% | = | 100 | × | 823,400) | ÷ | 4,574,300) |
| Dec 31, 2019 | 25.24% | = | 100 | × | 1,046,900) | ÷ | 4,148,300) |
| Dec 31, 2018 | 23.00% | = | 100 | × | 722,200) | ÷ | 3,140,400) |
| Dec 31, 2017 | 19.74% | = | 100 | × | 583,600) | ÷ | 2,956,200) |
| Dec 31, 2016 | 21.74% | = | 100 | × | 569,500) | ÷ | 2,619,000) |
| Dec 31, 2015 | 19.77% | = | 100 | × | 494,900) | ÷ | 2,503,100) |
| Dec 31, 2014 | 37.01% | = | 100 | × | 811,100) | ÷ | 2,191,400) |
| Dec 31, 2013 | 25.12% | = | 100 | × | 391,700) | ÷ | 1,559,200) |
| Dec 31, 2012 | 19.82% | = | 100 | × | 293,200) | ÷ | 1,479,300) |
| Dec 31, 2011 | 17.69% | = | 100 | × | 236,700) | ÷ | 1,337,900) |
| Dec 31, 2010 | 16.66% | = | 100 | × | 218,000) | ÷ | 1,308,200) |
| Dec 31, 2009 | 19.79% | = | 100 | × | 229,100) | ÷ | 1,157,900) |
| Dec 31, 2008 | 14.67% | = | 100 | × | 128,900) | ÷ | 878,800) |
| Dec 31, 2007 | 13.53% | = | 100 | × | 113,000) | ÷ | 835,000) |
| Dec 31, 2006 | 17.41% | = | 100 | × | 130,500) | ÷ | 749,400) |
| Dec 31, 2005 | 11.49% | = | 100 | × | 79,300) | ÷ | 690,000) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2021 is characterized by substantial growth in absolute profitability and a consistent expansion of the equity base, resulting in a general upward trend in capital efficiency.
- Net Income Growth
- Net income exhibited a strong long-term growth pattern, rising from 79.3 million US dollars in 2005 to 1.5 billion US dollars in 2021. While the growth was largely progressive, a significant volatility event occurred between 2014 and 2015, where income peaked at 811.1 million US dollars before contracting to 494.9 million US dollars. Following this period, a renewed acceleration is observed, particularly between 2018 and 2021.
- Stockholders' Equity Expansion
- Equity grew steadily and without interruption throughout the analyzed period, increasing from 690 million US dollars in 2005 to 5.8 billion US dollars in 2021. This consistent growth indicates a sustained accumulation of retained earnings and a strengthening of the company's balance sheet over the sixteen-year span.
- Return on Equity (ROE) Dynamics
- The ROE demonstrated a general shift from lower single-digit teens toward a higher baseline. The ratio began at 11.49% in 2005 and reached a peak of 37.01% in 2014. After a correction in 2015 to 19.77%, the ROE stabilized within a range of 18.00% to 25.76%. The ability to maintain an ROE above 20% in several of the later years, despite a much larger equity base, suggests an increase in operational efficiency and the ability to generate higher returns on invested capital.
The divergence between the growth rates of net income and stockholders' equity explains the fluctuations in ROE. The sharp spike in 2014 was driven by a disproportionate increase in net income relative to equity, whereas the subsequent normalization reflects a period where equity growth caught up with profitability gains.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Edwards Lifesciences Corp., ROE, long-term trends, comparison to competitors
| Edwards Lifesciences Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 25.76% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 18.00% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 25.24% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 23.00% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 19.74% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 21.74% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 19.77% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 37.01% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 25.12% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 19.82% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 17.69% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 16.66% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 19.79% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 14.67% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 13.53% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 17.41% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 11.49% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Edwards Lifesciences Corp., ROE, long-term trends, comparison to sector (health care equipment & services)
| Edwards Lifesciences Corp. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2021 | 25.76% | 17.28% |
| Dec 31, 2020 | 18.00% | 15.80% |
| Dec 31, 2019 | 25.24% | 15.85% |
| Dec 31, 2018 | 23.00% | 13.28% |
| Dec 31, 2017 | 19.74% | 12.21% |
| Dec 31, 2016 | 21.74% | 10.70% |
| Dec 31, 2015 | 19.77% | 11.84% |
| Dec 31, 2014 | 37.01% | 13.81% |
| Dec 31, 2013 | 25.12% | 14.22% |
| Dec 31, 2012 | 19.82% | 17.99% |
| Dec 31, 2011 | 17.69% | 17.02% |
| Dec 31, 2010 | 16.66% | 17.62% |
| Dec 31, 2009 | 19.79% | 19.50% |
| Dec 31, 2008 | 14.67% | 17.63% |
| Dec 31, 2007 | 13.53% | 20.02% |
| Dec 31, 2006 | 17.41% | 16.70% |
| Dec 31, 2005 | 11.49% | 16.22% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Edwards Lifesciences Corp., ROE, long-term trends, comparison to industry (health care)
| Edwards Lifesciences Corp. | Health Care | |
|---|---|---|
| Dec 31, 2021 | 25.76% | 25.44% |
| Dec 31, 2020 | 18.00% | 16.70% |
| Dec 31, 2019 | 25.24% | 23.30% |
| Dec 31, 2018 | 23.00% | 21.27% |
| Dec 31, 2017 | 19.74% | 13.77% |
| Dec 31, 2016 | 21.74% | 18.53% |
| Dec 31, 2015 | 19.77% | 18.52% |
| Dec 31, 2014 | 37.01% | 19.17% |
| Dec 31, 2013 | 25.12% | 18.81% |
| Dec 31, 2012 | 19.82% | 18.20% |
| Dec 31, 2011 | 17.69% | 15.90% |
| Dec 31, 2010 | 16.66% | 14.85% |
| Dec 31, 2009 | 19.79% | 20.14% |
| Dec 31, 2008 | 14.67% | 20.29% |
| Dec 31, 2007 | 13.53% | 17.87% |
| Dec 31, 2006 | 17.41% | 20.49% |
| Dec 31, 2005 | 11.49% | 18.28% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).