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.

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Edwards Lifesciences Corp., total asset turnover, long-term trends, calculation

Microsoft Excel
Total asset turnover = Net sales1 ÷ Total assets1
Dec 31, 2021 0.62 = 5,232,500 ÷ 8,502,600
Dec 31, 2020 0.61 = 4,386,300 ÷ 7,237,100
Dec 31, 2019 0.67 = 4,348,000 ÷ 6,488,100
Dec 31, 2018 0.70 = 3,722,800 ÷ 5,323,700
Dec 31, 2017 0.60 = 3,435,300 ÷ 5,695,800
Dec 31, 2016 0.66 = 2,963,700 ÷ 4,510,000
Dec 31, 2015 0.61 = 2,493,700 ÷ 4,059,300
Dec 31, 2014 0.66 = 2,322,900 ÷ 3,524,300
Dec 31, 2013 0.75 = 2,045,500 ÷ 2,724,700
Dec 31, 2012 0.86 = 1,899,600 ÷ 2,221,500
Dec 31, 2011 0.85 = 1,678,600 ÷ 1,980,500
Dec 31, 2010 0.82 = 1,447,000 ÷ 1,767,200
Dec 31, 2009 0.82 = 1,321,400 ÷ 1,615,500
Dec 31, 2008 0.88 = 1,237,700 ÷ 1,400,200
Dec 31, 2007 0.81 = 1,091,100 ÷ 1,345,100
Dec 31, 2006 0.83 = 1,037,000 ÷ 1,246,800
Dec 31, 2005 0.81 = 997,900 ÷ 1,229,100

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 data indicates a period of significant expansion in both top-line revenue and the asset base between 2005 and 2021. While net sales grew consistently from approximately 997.9 million USD to 5.23 billion USD, total assets expanded more aggressively, increasing from 1.23 billion USD to 8.50 billion USD over the same period. This divergence in growth rates is reflected in the total asset turnover ratio, which shifted from a higher efficiency baseline to a lower one.

Revenue and Asset Expansion
Net sales exhibited a steady upward trajectory throughout the 16-year period. A notable acceleration occurred after 2015, with sales increasing from 2.49 billion USD in 2015 to 5.23 billion USD by 2021. Concurrently, total assets grew substantially, with a particularly sharp increase observed between 2013 and 2015, where assets rose from 2.72 billion USD to 4.06 billion USD.
Total Asset Turnover Stability (2005–2012)
During the initial phase of the analysis, the total asset turnover ratio remained relatively stable, fluctuating within a narrow range between 0.81 and 0.88. This suggests that during this period, the growth in assets was closely aligned with the growth in net sales, maintaining a consistent level of asset utilization efficiency.
Efficiency Decline and Stabilization (2013–2021)
A marked decline in asset turnover began in 2013, falling from 0.75 to a low of 0.60 by 2017. This downward trend indicates that the rate of asset accumulation exceeded the rate of revenue growth, leading to lower efficiency in generating sales per unit of asset. From 2016 to 2021, the ratio stabilized at a lower plateau, ranging between 0.60 and 0.70, despite the continued increase in absolute net sales.
Operational Insight
The transition from an average turnover ratio of approximately 0.84 in the first eight years to approximately 0.64 in the final eight years suggests a structural change in the company's balance sheet. The accumulation of assets has outpaced sales growth, resulting in a diminished capacity to generate revenue relative to the total invested asset base.

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Comparison to Competitors

Edwards Lifesciences Corp., total asset turnover, long-term trends, comparison to competitors

Microsoft Excel
Edwards Lifesciences Corp. Abbott Laboratories Elevance Health Inc. Intuitive Surgical Inc. Medtronic PLC UnitedHealth Group Inc.
Dec 31, 2021 0.62 0.57 1.41 0.42 0.32 1.34
Dec 31, 2020 0.61 0.48 1.39 0.39 0.32 1.30
Dec 31, 2019 0.67 0.47 1.33 0.46 0.34 1.38
Dec 31, 2018 0.70 0.46 1.28 0.47 0.33 1.48
Dec 31, 2017 0.60 0.36 1.26 0.54 0.30 1.44
Dec 31, 2016 0.66 0.40 1.29 0.42 0.29 1.50
Dec 31, 2015 0.61 0.49 1.27 0.49 0.19 1.40
Dec 31, 2014 0.66 0.49 1.18 0.54 0.45 1.50
Dec 31, 2013 0.75 0.51 1.18 0.57 0.48 1.49
Dec 31, 2012 0.86 0.59 1.03 0.54 0.49 1.36
Dec 31, 2011 0.85 0.64 1.15 0.57 0.52 1.49
Dec 31, 2010 0.82 0.59 1.15 0.59 0.56 1.48
Dec 31, 2009 0.82 0.59 1.17 0.58 0.62 1.47
Dec 31, 2008 0.88 0.70 1.27 0.59 0.61 1.44
Dec 31, 2007 0.81 0.65 1.15 0.58 0.63 1.46
Dec 31, 2006 0.83 0.62 1.08 0.55 0.57 1.46
Dec 31, 2005 0.81 0.77 0.87 0.45 0.61 1.08

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., total asset turnover, long-term trends, comparison to sector (health care equipment & services)

Microsoft Excel
Edwards Lifesciences Corp. Health Care Equipment & Services
Dec 31, 2021 0.62 1.02
Dec 31, 2020 0.61 0.97
Dec 31, 2019 0.67 0.98
Dec 31, 2018 0.70 0.98
Dec 31, 2017 0.60 0.89
Dec 31, 2016 0.66 0.92
Dec 31, 2015 0.61 0.85
Dec 31, 2014 0.66 1.05
Dec 31, 2013 0.75 1.04
Dec 31, 2012 0.86 0.94
Dec 31, 2011 0.85 1.02
Dec 31, 2010 0.82 1.00
Dec 31, 2009 0.82 1.03
Dec 31, 2008 0.88 1.09
Dec 31, 2007 0.81 1.06
Dec 31, 2006 0.83 1.03
Dec 31, 2005 0.81 0.88

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., total asset turnover, long-term trends, comparison to industry (health care)

Microsoft Excel
Edwards Lifesciences Corp. Health Care
Dec 31, 2021 0.62 0.62
Dec 31, 2020 0.61 0.57
Dec 31, 2019 0.67 0.57
Dec 31, 2018 0.70 0.63
Dec 31, 2017 0.60 0.56
Dec 31, 2016 0.66 0.57
Dec 31, 2015 0.61 0.55
Dec 31, 2014 0.66 0.60
Dec 31, 2013 0.75 0.58
Dec 31, 2012 0.86 0.58
Dec 31, 2011 0.85 0.61
Dec 31, 2010 0.82 0.61
Dec 31, 2009 0.82 0.55
Dec 31, 2008 0.88 0.73
Dec 31, 2007 0.81 0.71
Dec 31, 2006 0.83 0.69
Dec 31, 2005 0.81 0.66

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).