Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Edwards Lifesciences Corp. pages available for free this week:
- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Edwards Lifesciences Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Edwards Lifesciences Corp., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibited a declining trend from 2017 through 2020, decreasing from 5.05 to 3.14. This indicates a reduced efficiency in utilizing net fixed assets to generate sales over this period. In 2021, there was a slight improvement to 3.38, suggesting a modest recovery in asset utilization efficiency.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- When including operating lease right-of-use assets, the net fixed asset turnover showed a similar downward trend, starting at 5.05 in 2017 and declining more notably to 2.95 by 2020. The ratio slightly increased to 3.19 in 2021. This parallel pattern confirms the decreased efficiency in asset usage, considering both owned and leased fixed assets during the period, with some positive movement in the most recent year.
- Total asset turnover
- Total asset turnover rose from 0.6 in 2017 to a peak of 0.7 in 2018, indicating improved efficiency in using total assets to generate revenues. Following this peak, the ratio decreased gradually through 2020 to 0.61 and remained relatively stable at 0.62 in 2021. This suggests a slight decline and subsequent stabilization in the overall asset usage efficiency over the timeframe.
- Equity turnover
- Equity turnover demonstrated a consistent downward trend across the five years, starting at 1.16 in 2017 and decreasing steadily each period to reach 0.9 in 2021. This declining ratio reflects a reduced ability to generate revenues from shareholders’ equity, indicating a less efficient use of equity capital during the period under review.
Net Fixed Asset Turnover
Edwards Lifesciences Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant, and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2021 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant, and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales Trends
- Net sales demonstrated a steady upward trajectory over the five-year period under review. Starting at approximately 3.44 billion USD in 2017, net sales increased each year, reaching around 5.23 billion USD by the end of 2021. This represents an overall growth of approximately 52% over the period, with the most notable increase occurring between 2020 and 2021.
- Property, Plant, and Equipment (PP&E)
- The net value of property, plant, and equipment also grew consistently year-over-year. Beginning at roughly 680 million USD in 2017, the PP&E balance increased substantially to about 1.55 billion USD by 2021, more than doubling in size. This growth reflects ongoing investment in fixed assets and expansion of operational capacity.
- Net Fixed Asset Turnover
- The ratio of net fixed asset turnover exhibited a declining trend overall. Beginning at 5.05 in 2017, the ratio steadily decreased through 2020, hitting a low of 3.14, before slightly rising to 3.38 in 2021. This decline suggests that although fixed asset investments increased significantly, sales growth did not keep pace proportionally, indicating reduced efficiency in generating sales from fixed assets over the majority of this period.
- Summary Insights
- The data indicates strong sales growth coupled with significant capital expenditures on property, plant, and equipment. However, the declining net fixed asset turnover implies that the company has been investing heavily in fixed assets, which has outpaced sales growth initially, potentially reflecting capacity expansion or modernization efforts. The slight improvement in the turnover ratio in 2021 might signal beginning gains in asset utilization efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Edwards Lifesciences Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant, and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a consistent upward trend over the five-year period. Starting at approximately $3.44 billion in 2017, sales increased each year, reaching about $5.23 billion by the end of 2021. This represents a substantial growth, highlighting an expanding revenue base and possibly reflecting increased market demand or successful sales strategies.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment (including operating lease and right-of-use assets) has also displayed significant growth throughout the examined period. Beginning at roughly $680 million in 2017, the value rose steadily each year to approximately $1.64 billion by 2021. This suggests considerable investment in fixed assets, potentially indicating capacity expansion or modernization efforts.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a declining trend from 2017 through 2020, decreasing from 5.05 times to 2.95 times. This indicates that although fixed assets increased, sales did not grow proportionally in this timeframe, leading to lower efficiency in utilizing fixed assets to generate revenues. In 2021, the ratio improved slightly to 3.19 times, suggesting some recovery in asset utilization efficiency.
Total Asset Turnover
Edwards Lifesciences Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited an overall upward trend from 2017 to 2021. Starting at 3,435,300 thousand US dollars in 2017, the sales increased each year except for a slight stabilization between 2019 and 2020, where values were 4,348,000 and 4,386,300 thousand US dollars respectively. A notable acceleration in growth occurred from 2020 to 2021, with a significant increase to 5,232,500 thousand US dollars.
- Total Assets
- Total assets showed a general increase over the period, beginning at 5,695,800 thousand US dollars in 2017. There was a decrease in 2018 to 5,323,700 thousand, followed by continuous growth through 2021, reaching 8,502,600 thousand US dollars. This growth indicates expanded asset investment or acquisition activities after the initial dip in 2018.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency in using assets to generate sales, remained relatively stable but exhibited a slight decline towards the end of the period. Starting at 0.6 in 2017, it increased to 0.7 in 2018, followed by a gradual decrease over the subsequent years, reaching 0.62 in 2021. This trend suggests that despite rising sales and asset base, asset utilization efficiency slightly diminished after 2018.
Equity Turnover
Edwards Lifesciences Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2021 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Over the five-year period from 2017 to 2021, net sales exhibited a consistent upward trend. Starting at approximately $3.44 billion in 2017, net sales increased steadily each year, reaching about $5.23 billion by 2021. The most notable growth occurred between 2020 and 2021, where sales rose significantly, indicating a strong positive performance in generating revenue.
- Stockholders' Equity
- Stockholders' equity also displayed a positive growth pattern throughout the period. The equity base expanded from roughly $2.96 billion in 2017 to $5.84 billion in 2021. The increase was particularly pronounced between 2019 and 2021, paralleling the boost in net sales. This growth suggests the company was successful in either retaining earnings, issuing new equity, or both, thereby strengthening its financial position.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of utilizing shareholders' equity to generate sales, showed a declining trend. It started at 1.16 in 2017 and gradually decreased to 0.90 by 2021. This decline implies that despite growing sales, the company required more equity per dollar of sales over time, indicating a reduction in capital efficiency. The decrease in this ratio could be attributed to the substantial increase in equity outpacing the rises in sales.
- Overall Insight
- The data reveals a company that has been growing its top line and equity base concurrently. However, the decreasing equity turnover ratio suggests a diminishing return on equity in terms of sales generated. This could point to increased capital investment or a strategic choice to strengthen the balance sheet. Monitoring this ratio will be important to assess whether future sales growth can better leverage the expanded equity base.