Edwards Lifesciences Corp. (NYSE:EW)

Debt to Equity Ratio

The ratio exhibited a general downward trend from the first quarter of 2018 through the end of 2021. Starting at 0.32 in March 2018, it peaked slightly in mid-2018 (0.38) and then declined consistently, reaching a low of 0.10 by December 2021. This decline indicates a gradual reduction in reliance on debt relative to equity over the observed period.

Debt to Equity Ratio (Including Operating Lease Liability)

This metric follows a similar downward pattern as the plain debt to equity ratio but maintains marginally higher values due to the inclusion of operating lease liabilities. The ratio peaked at 0.38 in June 2018, then steadily decreased to 0.12 by the end of 2021, reflecting a consistent decrease in overall leverage when including lease obligations.

Debt to Capital Ratio

The debt to capital ratio also shows a downward trajectory, starting at 0.25 in early 2018 and dropping progressively to 0.09 by December 2021. This suggests that the company's debt portion of its capital structure lessened systematically, indicating stronger capital adequacy over time.

Debt to Capital Ratio (Including Operating Lease Liability)

Including lease liabilities, the debt to capital ratio trends similarly to the undiscounted measure but remains slightly elevated, moving from 0.25 in March 2018 to 0.11 at the end of 2021. This reinforces the observation that lease obligations have a modest impact on capital structure analysis but overall leverage decreased consistently.

Debt to Assets Ratio

This ratio declined from 0.18 in March 2018 to 0.07 by December 2021. The steady reduction indicates that the company's debt relative to its total assets diminished over the period, supporting an improvement in financial stability or a relative growth in asset base compared to debt levels.

Debt to Assets Ratio (Including Operating Lease Liability)

The inclusive ratio mirrors the general downtrend but registers slightly higher levels due to operating lease liabilities. The ratio moves from 0.18 in early 2018 to 0.08 at the end of 2021, reflecting a conservative approach in accounting for lease commitments alongside debt obligations.

Financial Leverage Ratio

This ratio, indicative of the extent to which the company uses equity to finance assets, decreased from 1.79 in March 2018 to 1.46 by December 2021. Although fluctuations occurred, particularly a slight increase observed around mid-2020 (1.67), the overall trend suggests a gradual reduction in leverage and a strengthening of the equity base relative to assets.

The financial data reveals several key trends in the company's capital structure over the examined periods from the first quarter of 2018 through the fourth quarter of 2021.

Total Debt

Total debt showed a marked decline at the end of 2018, dropping from a peak of approximately 1.19 billion US dollars in the third quarter of 2018 to about 594 million by the fourth quarter of 2018. Following this sharp decrease, total debt remained relatively stable around the 594 million mark through to the end of 2021, exhibiting minimal fluctuations during this period.

Stockholders’ Equity

Stockholders’ equity demonstrated a general upward trend across the timeframe, beginning at approximately 3.25 billion US dollars in the first quarter of 2018. Some volatility was observed in the initial periods with a slight decline in the middle of 2018; however, from early 2019 onwards, equity consistently increased, reaching nearly 5.84 billion US dollars by the fourth quarter of 2021. This growth suggests a strengthening equity base over the period.

Debt to Equity Ratio

The debt to equity ratio correspondingly decreased significantly through the period. Starting at 0.32 in the first quarter of 2018, the ratio fell to 0.19 by the end of 2018, synchronized with the reduction in total debt and relatively stable equity. Thereafter, the ratio continued a gradual decline to 0.10 by the end of 2021, reflecting the increasing equity in combination with stable total debt.

Overall, the company's leverage decreased materially over the analyzed periods, as evidenced by the substantial reduction and stabilization of total debt alongside consistent growth in stockholders’ equity. This indicates a strengthening balance sheet and a potentially lower financial risk profile by the end of 2021.

Total Debt (Including Operating Lease Liability)

The total debt level exhibited a notable decline from early 2018 through the end of 2018, dropping from approximately $1.05 billion to around $594 million. Following that period, the debt level stabilized and remained relatively consistent around the $670 million mark through the end of 2019 and into 2020. From 2020 to the end of 2021, total debt showed minor fluctuations but stayed close to the $690 million range, indicating a period of manageable and stable leverage.

Stockholders’ Equity

Stockholders’ equity showed a general upward trend over the entire period. There was some volatility in 2018, with equity varying between approximately $3.14 billion and $3.36 billion, but a strong growth trajectory was evident starting in 2019. By the end of 2019, equity had risen to about $4.15 billion. This growth accelerated through 2020 and 2021, culminating in approximately $5.84 billion at the end of 2021. This steady increase suggests expansion in the company's net assets or retained earnings over time.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio declined significantly from the first quarter of 2018 through the end of 2018, dropping from 0.32 to 0.19, indicating reduced leverage relative to equity. This ratio continued to decrease gradually through 2019 and into 2021, reaching a low of 0.12 by the fourth quarter of 2021. The downward trend in the debt to equity ratio reflects a strengthening equity base relative to debt, which generally implies improved financial stability and reduced risk from leverage.

Summary Insights

Overall, the data reveals a clear reduction in total debt during 2018, followed by a period of debt stability. Concurrently, stockholders' equity increased steadily, particularly from 2019 onwards. This caused the debt to equity ratio to steadily decline, indicating that the company improved its financial leverage position by growing equity faster than debt. The combination of stable debt levels and increasing equity suggests prudent financial management with a focus on strengthening the balance sheet over the observed periods.

Total Debt

The total debt demonstrated an initial increase from approximately 1.05 billion to 1.19 billion US dollars within the first three quarters of 2018. Subsequently, a significant reduction occurred by the end of 2018, decreasing to around 594 million US dollars. From that point onward, total debt remained relatively stable across the subsequent quarters through 2021, with only marginal fluctuations noted within the range of 594 to 596 million US dollars.

Total Capital

Total capital exhibited a varying trajectory over the period analyzed. Initially, there was an upward trend from roughly 4.3 billion to 4.55 billion US dollars throughout the first three quarters of 2018. This was followed by a marked decline to about 3.7 billion US dollars at the end of 2018. Starting in 2019, total capital progressively increased each quarter, reaching approximately 6.43 billion US dollars by the end of 2021, thus indicating robust capital growth over the three-year horizon.

Debt to Capital Ratio

The debt to capital ratio experienced a notable shift during the period under review. Initially, it stood at around 0.25 to 0.27 in early 2018, reflecting a moderate proportion of debt relative to capital. By the end of 2018, this ratio dropped sharply to approximately 0.16 and continued a downward trend in subsequent quarters. By the end of 2021, the ratio decreased to 0.09, indicating a consistent reduction in leverage and a strengthening equity base relative to debt.

Overall Analysis

The data reveal a significant deleveraging event occurring towards the end of 2018, characterized by a substantial decline in total debt and a concurrent drop in the debt to capital ratio. This coincided with a temporary contraction in total capital during that period. Following this phase, the company appeared to focus on capital expansion, as evidenced by steady increases in total capital from 2019 onward. The stabilization of total debt at a lower level alongside the growth in capital resulted in a sustained decline in leverage, suggesting an overall strengthening of the company's financial position and potentially reduced financial risk over the observed timeframe.

Total Debt (including operating lease liability)

The total debt exhibited a fluctuating trend over the observed periods. Initially, from March 2018 to September 2018, there was an increase from approximately $1.05 billion to $1.19 billion. A significant decline occurred by December 2018, with debt levels dropping to roughly $594 million. From March 2019 through December 2019, total debt showed a gradual increase, stabilizing near $679 million.

In 2020, debt remained relatively stable with minor upticks, progressing from approximately $675 million in the first quarter to nearly $695 million by year-end. The trend continued with a slight decrease in the first half of 2021 before stabilizing around $690 million by the fourth quarter.

Total Capital (including operating lease liability)

Total capital displayed an overall upward trend, with some variability. From March to September 2018, capital increased steadily from about $4.3 billion to $4.55 billion. However, a significant drop occurred in December 2018, bringing the capital down to around $3.73 billion.

Subsequent quarters from March 2019 to December 2019 saw a recovery and consistent growth, with capital rising to approximately $4.83 billion. The upward trajectory continued through 2020 and 2021, reaching about $6.53 billion by the end of 2021, indicating sustained expansion of the company's capital base.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio declined noticeably over the time frame, reflecting a reduction in leverage. Early in 2018, the ratio hovered around 0.25 to 0.27, but a marked decrease was observed by the end of 2018, falling to approximately 0.16 and trending lower thereafter.

From 2019 onwards, the ratio consistently decreased, reaching a low of 0.11 by the end of 2021. This decline implies an improved capital structure with a lower proportion of debt relative to total capital, potentially indicating enhanced financial stability and reduced financial risk.

Total Debt

The total debt level exhibited a marked decrease beginning at the end of 2018. From March 2018 through September 2018, the total debt hovered around 1,054,600 to 1,193,500 thousand US dollars, indicating a relatively stable high level. However, by December 2018, the debt sharply declined to approximately 593,800 thousand US dollars, and this reduced level was maintained consistently thereafter through the end of 2021. Minor incremental increases were observed but remained minimal, concluding at 595,700 thousand US dollars in the last recorded period.

Total Assets

Total assets showed considerable variability and an overall strong upward trend during the period. Starting at around 5,825,100 thousand US dollars in March 2018, there was a decline through the end of 2018, reaching approximately 5,323,700 thousand US dollars in December 2018. From 2019 onwards, total assets increased steadily from about 5,469,300 thousand US dollars in March 2019 to a peak of 8,502,600 thousand US dollars in December 2021. This progression reflects a progressive enhancement of the asset base, with a notable acceleration from late 2019 through 2021.

Debt to Assets Ratio

The debt-to-assets ratio displayed a significant downward shift within the observed time frame. Initially around 0.18 to 0.21 during early 2018, the ratio sharply decreased after mid-2018, settling near 0.11 by March 2019. A consistent declining trend followed, reaching as low as 0.07 by the end of 2021. This decline reflects the combination of stable, reduced debt levels alongside expanding total assets, indicating an improving leverage position and potentially lower financial risk.

The analysis of the quarterly financial data reveals several key trends in the company's leverage and asset base over the observed periods.

Total Debt (Including Operating Lease Liability)

The total debt exhibited a significant decline from the beginning of 2018 to the end of 2018, dropping from approximately 1,054,600 thousand US dollars to 593,800 thousand US dollars. From early 2019 through the end of 2021, total debt remained relatively stable with slight fluctuations around the 670,000 to 690,000 thousand US dollar range. This indicates a reduction in leverage around 2018, followed by a consistent management of debt levels in subsequent years.

Total Assets

Total assets showed a general upward trend over the entire period. After a slight dip in the fourth quarter of 2018 to 5,323,700 thousand US dollars, assets grew steadily, reaching 8,502,600 thousand US dollars by the last quarter of 2021. This continual increase in assets suggests ongoing growth or investment in asset holdings, potentially reflecting business expansion or acquisition activity.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio demonstrated a marked decrease from 0.18-0.21 levels in the first three quarters of 2018, dropping sharply to around 0.10-0.11 in late 2018 and remaining low thereafter. Throughout 2019 to 2021, the ratio further declined modestly, reaching approximately 0.08 by the end of 2021. This declining trend reflects improved financial leverage and a stronger asset base relative to total debt, indicating increased financial stability and a reduced risk profile.

Overall, the data indicate that while total debt was substantially reduced in 2018, the company continued to increase its asset base consistently, resulting in significantly improved leverage ratios. This pattern illustrates effective debt management concurrent with asset growth, contributing to enhanced financial strength over the period analyzed.

The financial data over the specified periods demonstrates several notable trends in total assets, stockholders' equity, and financial leverage ratio.

Total Assets

Total assets experienced fluctuations with an initial decline from the first quarter of 2018 through the end of 2018, dropping from approximately 5.83 billion to 5.32 billion US dollars. Starting early 2019, there was a consistent upward trajectory, culminating in 8.50 billion by the end of 2021. This steady increase after the 2018 decline indicates asset growth and expansion over the latter periods.

Stockholders’ Equity

Stockholders’ equity mirrored a somewhat similar pattern to total assets, declining during 2018 from around 3.25 billion to 3.14 billion US dollars. From 2019 onward, equity steadily increased, reaching approximately 5.84 billion US dollars by the end of 2021. This progression points to strengthening capital base and retained earnings contributing to equity growth over time.

Financial Leverage Ratio

The financial leverage ratio, which reflects the relationship between total assets and equity, showed a declining trend initially, decreasing from about 1.79 in early 2018 to approximately 1.56 by the end of 2019. A slight rise to 1.67 was noted in mid-2020, followed by a continuous decrease afterward, reaching a low of 1.46 by the end of 2021. This general downward trend in leverage ratio suggests a gradual reduction in reliance on debt or liabilities relative to equity, implying improved financial stability and conservative capital structure management in recent periods.

In summary, the company showed an initial contraction in assets and equity through 2018, followed by a robust recovery and consistent growth in both metrics from 2019 to 2021. Concurrently, the financial leverage ratio decreased over time, indicating a shift toward a stronger equity position relative to liabilities, which points to a generally improving financial risk profile.