Edwards Lifesciences Corp. (NYSE:EW)

Total Asset Turnover

The reported total asset turnover ratio exhibited a slight increase from 0.60 in 2017 to 0.70 in 2018, followed by a gradual decline to 0.62 by 2021. Adjusted figures followed a similar pattern, rising initially to 0.71 in 2018 and then trending downward to 0.63 at the end of the period. This suggests a peak in asset utilization efficiency around 2018, with a subsequent stabilization at a lower level.

Current Ratio

Both reported and adjusted current ratios showed a significant upward trend from 1.8 in 2017 to above 3.0 by 2019, reaching peaks of approximately 3.46 in 2020 before a modest decline to around 3.08 in 2021. This indicates a strengthening liquidity position over the period, implying an improved capacity to cover short-term liabilities with current assets, though with a slight reduction in the most recent year.

Debt to Equity Ratio

A steady decline in the debt to equity ratio was evident, falling from 0.35 (reported) and 0.40 (adjusted) in 2017 to 0.10 and 0.12 respectively in 2021. This suggests a consistent reduction in leverage and reliance on debt financing relative to equity, highlighting a more conservative capital structure over time.

Debt to Capital Ratio

Similar to the debt to equity metric, the debt to capital ratios also decreased from 0.26 (reported) and 0.28 (adjusted) in 2017 to 0.09 and 0.11 by 2021. This trend reinforces the ongoing deleveraging strategy and a strengthened equity base in the company’s capital composition.

Financial Leverage

The reported financial leverage ratio diminished from 1.93 in 2017 to 1.46 in 2021, with adjusted values showing a comparable decline from 2.0 to 1.47. This reduction aligns with the decrease in debt ratios, reflecting lower indebtedness and less aggressive use of financial leverage during the examined period.

Net Profit Margin

The net profit margin experienced fluctuations but with an overall upward trajectory. Reported margins rose from 16.99% in 2017 to a peak of 28.73% in 2021, despite a dip around 2020. Adjusted margins mirrored this pattern, growing from 19.68% to 27.94%. This indicates improved profitability and operational efficiency with some variability, particularly around 2020.

Return on Equity (ROE)

ROE showed growth from 19.74% reported in 2017 to 25.76% in 2021, although it decreased notably in 2020 before rebounding. Adjusted ROE trends were consistent, moving from 24.32% down to 17.51% in 2020, then increasing to 26%. This pattern suggests that while equity returns were temporarily impacted, likely by external factors during 2020, the company recovered strongly thereafter.

Return on Assets (ROA)

ROA improved steadily from 10.25% reported in 2017 to 17.68% in 2021, with adjusted figures reflecting a similar gain from 12.16% to 17.69%. There was a decline at 2020 consistent with other profitability measures, indicating a temporary reduction in asset efficiency or profitability that was subsequently reversed.

Net Sales

Net sales demonstrate a consistent upward trend throughout the observed period, rising from 3,435,300 thousand US dollars in 2017 to 5,232,500 thousand US dollars in 2021. The most notable increase occurred between 2020 and 2021, indicating accelerated growth in revenue generation during the latter year.

Total Assets

Total assets display a fluctuating but overall increasing pattern over the five years. Starting at 5,695,800 thousand US dollars in 2017, the figure declined slightly in 2018 but then rose steadily, reaching 8,502,600 thousand US dollars by 2021. This suggests ongoing investment or growth in asset holdings, particularly significant post-2018.

Reported Total Asset Turnover

The reported total asset turnover ratio, indicating efficiency in utilizing assets to generate sales, increased from 0.6 in 2017 to a peak of 0.7 in 2018. However, it subsequently declined and stabilized around 0.61 to 0.62 from 2019 onward, implying a slight reduction in asset utilization efficiency after 2018 despite growing assets and sales.

Adjusted Total Assets

Adjusted total assets follow a similar trajectory to reported total assets, decreasing from 5,558,239 thousand US dollars in 2017 to 5,241,204 thousand in 2018, then increasing to 8,265,200 thousand by 2021. This trend reaffirms the overall increase in asset base when adjusting for any specified factors.

Adjusted Total Asset Turnover

Adjusted total asset turnover mirrors the pattern of reported turnover, beginning at 0.62 in 2017, increasing to 0.71 in 2018, and subsequently declining and stabilizing near 0.63 through to 2021. The initial improvement in asset efficiency was followed by a modest downward adjustment, indicating relatively stable but slightly diminished operational efficiency over recent years.

Current Assets

Current assets experienced a decline from 2,532,100 thousand US dollars in 2017 to 2,286,900 thousand in 2018. However, from 2018 onward, there was a consistent upward trend, reaching 3,180,700 thousand by the end of 2021. This indicates a recovery and growth in liquid resources available within the company over the analyzed period.

Current Liabilities

Current liabilities showed a significant reduction from 1,402,900 thousand US dollars in 2017 to 876,600 thousand in 2018, suggesting an improvement in short-term obligations management during that year. Following this decrease, current liabilities remained relatively stable around the 900,000 thousand mark through 2020, before increasing again to 1,032,300 thousand in 2021.

Reported Current Ratio

The reported current ratio improved markedly from 1.8 in 2017 to 2.61 in 2018, which aligns with the reduction in current liabilities. The upward trend continued through 2019 and 2020, reaching a peak of 3.46, indicating strengthened liquidity position. There was a slight decline to 3.08 in 2021, though the ratio remained well above the earlier years, reflecting strong capacity to cover short-term liabilities with current assets.

Adjusted Current Assets

Adjusted current assets followed a trend similar to reported current assets, initially decreasing from 2,540,600 thousand US dollars in 2017 to 2,295,800 thousand in 2018, then steadily increasing each year to 3,190,000 thousand by 2021. This consistency suggests that adjustments made did not materially alter the growth pattern of the company's liquid assets.

Adjusted Current Ratio

The adjusted current ratio mirrored the reported current ratio closely, starting at 1.81 in 2017 and rising to 2.62 in 2018. It peaked at 3.47 in 2020 and slightly declined to 3.09 in 2021. This indicates that adjustments to current assets had minimal effect on the overall liquidity ratio trends, confirming a robust liquidity profile throughout the period.

Total Debt

The total debt decreased significantly from 1,036,400 thousand USD in 2017 to 593,800 thousand USD in 2018 and remained relatively stable around 594,000 to 596,000 thousand USD through 2021. This indicates a meaningful reduction in outstanding liabilities during 2018, followed by consistent management of debt levels in subsequent years.

Stockholders’ Equity

Stockholders’ equity exhibited a steady and notable increase over the period, rising from 2,956,200 thousand USD in 2017 to 5,835,900 thousand USD in 2021. This trend suggests improved net asset value, supported potentially by retained earnings growth and capital infusion, reflecting strengthened financial position and shareholder value enhancement.

Reported Debt to Equity Ratio

The reported debt to equity ratio displayed a clear downward trajectory, dropping from 0.35 in 2017 to 0.10 in 2021. This decline illustrates a reduced reliance on debt financing relative to equity, implying a conservative capital structure and possibly lower financial risk over time.

Adjusted Total Debt

The adjusted total debt mirrored the trend in reported debt, decreasing from 1,103,939 thousand USD in 2017 to 676,404 thousand USD in 2018 and stabilizing around 690,000 thousand USD by 2021. This indicates consistency between reported and adjusted debt metrics, reinforcing the debt reduction narrative.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity followed a similar upward pattern as the reported equity, increasing from 2,778,700 thousand USD in 2017 to 5,623,100 thousand USD in 2021. The growth trend supports the overall improved capitalization and net worth under adjusted measurements.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 0.40 in 2017 to 0.12 in 2021, reaffirming the declining leverage trend observed in the reported ratios. This suggests enhanced financial stability and a strengthened equity base relative to debt obligations.

Total Debt

The total debt of the company shows a significant decline from 2017 to 2018, dropping from approximately $1,036 million to $594 million. From 2018 onward, the total debt remains relatively stable, with a marginal increase each year, reaching around $596 million by the end of 2021.

Total Capital

Total capital exhibits a fluctuating yet generally increasing trend over the analyzed period. It starts near $3,993 million in 2017, dips slightly in 2018, and then grows steadily each year, culminating at approximately $6,432 million in 2021. This indicates the company's expanding capital base.

Reported Debt to Capital Ratio

This ratio decreases consistently throughout the period, falling from 0.26 in 2017 to 0.09 in 2021. The decline reflects a reduction in the proportion of debt relative to total capital, demonstrating improved leverage and a stronger capital structure.

Adjusted Total Debt

Adjusted total debt follows a pattern similar to reported total debt, starting at roughly $1,104 million in 2017 and dropping sharply to about $676 million in 2018. The adjusted debt remains relatively stable thereafter, with a slight increase peaking around $695 million in 2020 before a minor decrease to $690 million in 2021.

Adjusted Total Capital

The adjusted total capital decreases marginally from $3,882 million in 2017 to $3,661 million in 2018, then exhibits a steady growth trend from 2019 forward. By 2021, it reaches approximately $6,313 million, indicating an overall enhancement of the capital base when adjusted for other factors.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrors the declining trend of the reported ratio, starting at 0.28 in 2017 and decreasing to 0.11 by 2021. Notably, this ratio remains relatively steady around 0.14 in 2019 and 2020 before improving in 2021, suggesting a gradual deleveraging over time.

Overall Insights

The company has significantly reduced its leverage ratios from 2017 to 2021, indicating stronger financial stability and conservatism in debt management. While total and adjusted debt levels have stabilized after an initial sharp decline, the expanding capital base has contributed to continuously improving debt-to-capital ratios. This implies enhanced creditworthiness and potentially greater capacity for future financing or investment activities.

Total Assets

Total assets demonstrated an overall increasing trend from 2017 to 2021. Starting at approximately $5.70 billion in 2017, total assets declined slightly in 2018 to about $5.32 billion, followed by a significant increase reaching approximately $8.50 billion by the end of 2021. This growth indicates an expansion in the company's asset base over the five-year period.

Stockholders’ Equity

Stockholders’ equity showed consistent growth throughout the observed periods. Beginning at roughly $2.96 billion in 2017, equity increased persistently each year, reaching nearly $5.84 billion by the end of 2021. The solid increase implies strengthening net assets and potentially enhanced shareholder value.

Reported Financial Leverage

The reported financial leverage ratio decreased steadily from 1.93 in 2017 to 1.46 in 2021. This decline suggests a reduction in the company's reliance on debt relative to its equity, reflecting a trend toward a more conservative capital structure over time.

Adjusted Total Assets

Adjusted total assets closely mirror the pattern of total assets, beginning at about $5.56 billion in 2017, dipping slightly in 2018, and then rising consistently each year to approximately $8.27 billion by 2021. The adjustments did not notably change the overall upward trend in asset growth.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also followed a similar ascending trajectory, rising from around $2.78 billion in 2017 to about $5.62 billion in 2021. This pattern underlines the improvement in the company's net worth under adjusted accounting measures.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 2.00 in 2017 to 1.47 in 2021, consistent with the trend observed in reported financial leverage. This indicates a reduction in leverage when accounting adjustments are considered, reinforcing the view of a progressively stronger equity position relative to liabilities.

The financial data indicates a generally positive trajectory in the company's performance over the five-year period ending in 2021. A detailed examination reveals several key trends and insights.

Net Income

Net income shows substantial growth from 583,600 thousand US dollars in 2017 to 1,503,100 thousand US dollars in 2021, more than doubling over the period. The increase is consistent year-over-year except for a dip in 2020, where net income decreased to 823,400 thousand US dollars from 1,046,900 thousand US dollars in 2019, which may suggest some temporary challenges or external impacts during that year.

Net Sales

Net sales exhibit a steady upward trend, rising from 3,435,300 thousand US dollars in 2017 to 5,232,500 thousand US dollars in 2021. This steady growth reflects an expanding revenue base, supporting the company's capacity to increase profitability.

Reported Net Profit Margin

The reported net profit margin has generally improved, starting at 16.99% in 2017, reaching a peak of 28.73% in 2021. There is a noted decline in 2020 to 18.77%, mirroring the dip in net income, but the margin recovers strongly in 2021, indicating improved efficiency or profitability management.

Adjusted Net Income

Adjusted net income follows a similar pattern to net income, with growth from 675,900 thousand US dollars in 2017 to 1,462,200 thousand US dollars in 2021. The adjusted figures are consistently higher than the reported net income, suggesting the presence of non-recurring or unusual items excluded from the adjusted figures. A decline in 2020 is again observed, aligning with the overall financial trends.

Adjusted Net Profit Margin

The adjusted net profit margin changes in line with the adjusted net income, starting at 19.68% in 2017 and ending at 27.94% in 2021. The margin dips to 17.49% in 2020 but recovers substantially in 2021, consistent with the overall recovery in profitability.

Overall, the data depicts a company experiencing solid revenue growth and enhanced profitability over the analyzed period, with a brief setback in 2020. The margins and income have rebounded to reach their highest levels in 2021, signifying a strong favorable trend in operational performance and profitability management.

The financial data illustrates significant growth trends in net income and stockholders’ equity over the five-year period, with some fluctuations in return measures.

Net Income

The net income shows a consistent upward trajectory, increasing from $583,600 thousand in 2017 to $1,503,100 thousand in 2021. The growth is notably strong in 2019 and 2021, with a dip observed in 2020, likely reflecting an adverse event or economic condition that year.

Stockholders’ Equity

Stockholders’ equity also experienced steady growth, rising from $2,956,200 thousand in 2017 to $5,835,900 thousand in 2021. This reflects a robust accumulation of company value and retained earnings over the period, with incremental increases each year.

Reported Return on Equity (ROE)

Reported ROE shows a variable pattern, starting at 19.74% in 2017, peaking at 25.24% in 2019, decreasing sharply to 18% in 2020, and then rebounding to 25.76% in 2021. This variation corresponds with the fluctuations in net income and suggests some operational or market pressures in 2020 that affected profitability relative to equity.

Adjusted Net Income

Adjusted net income follows a similar trend to reported net income but with some differences in magnitude. It increased from $675,900 thousand in 2017 to $1,462,200 thousand in 2021, with a decrease in 2020 aligned with the reported data. The adjustments appear to reflect more consistent profitability underlying reported figures.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity rose from $2,778,700 thousand in 2017 to $5,623,100 thousand in 2021, mirroring the reported equity trend but generally slightly lower. This indicates that the adjustments reduce equity somewhat, possibly by excluding certain items.

Adjusted Return on Equity

Adjusted ROE started at 24.32% in 2017, staying relatively steady around 23-26% except for a sharp decline to 17.51% in 2020, before recovering to 26% in 2021. This pattern closely follows reported ROE, confirming that underlying profitability relative to adjusted equity was impaired in 2020 but improved strongly thereafter.

Overall, the data reveals sustained growth in income and equity, with a notable disruption in 2020 affecting profitability ratios. The recovery in 2021 highlights strong financial resilience and improved return metrics. Adjusted measures provide deeper insight into the company’s core earnings power and capital base, confirming trends observed in reported figures.

Net Income

The net income demonstrated a consistent upward trend over the five-year period. Starting at $583.6 million in 2017, it increased steadily each year, reaching a peak of $1.503 billion in 2021. The most notable increase occurred between 2020 and 2021, where net income rose by over 80%.

Total Assets

Total assets exhibited some fluctuations but showed an overall growth trajectory. Assets decreased from approximately $5.7 billion in 2017 to $5.32 billion in 2018, then increased significantly to $6.49 billion in 2019 and continued to rise through to $8.5 billion in 2021. This indicates expansion and asset accumulation over the period.

Reported Return on Assets (ROA)

The reported ROA follows a generally positive trend with some variability. It rose from 10.25% in 2017 to a high of 16.14% in 2019 before declining to 11.38% in 2020. It then sharply increased again to 17.68% in 2021, the highest in the series, reflecting improved efficiency in asset utilization to generate net income.

Adjusted Net Income

Adjusted net income also showed notable growth across the period, from $675.9 million in 2017 rising to $1.462 billion in 2021. Similar to net income, there was a dip in 2020 to $767 million, followed by a strong recovery in 2021, suggesting the impact of exceptional items was minimized and the core profitability strengthened.

Adjusted Total Assets

Adjusted total assets exhibited trends paralleling the reported total assets, decreasing slightly in 2018 before a steady increase to $8.27 billion by 2021. This steady growth in adjusted assets supports the company’s expanding asset base over the analyzed years.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA closely mirrors the pattern of the reported ROA, starting at 12.16% in 2017 and peaking at 16.44% in 2019, followed by a decline to 10.93% in 2020. Subsequently, it surged to the highest point of 17.69% in 2021. This suggests that excluding exceptional adjustments, the company consistently improved its asset efficiency, particularly notable in the final year.