Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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:
- Balance Sheet: Assets
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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 (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio shows a general declining trend over the analyzed periods. Starting at 4.84 in March 2018, the ratio gradually decreased to 3.38 by December 2021. This decline is consistent throughout most quarters, indicating a reduced efficiency in generating revenue from fixed assets over time. Notably, a sharper decline is observed from early 2020 to late 2020, where the ratio falls from 4.07 to 3.14, before stabilizing and slightly increasing towards the end of 2021.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
The inclusion of operating leases and right-of-use assets in the net fixed asset turnover calculation also reveals a downward trend across the periods. Starting equal to the standard net fixed asset turnover at 4.84 in March 2018, the adjusted ratio declines more noticeably, reaching 3.19 by December 2021. The adjustment reflects the impact of accounting changes related to lease capitalization, leading to generally lower turnover ratios, especially from 2019 onward. The decrease reflects the increasing asset base due to right-of-use assets, which dampens turnover ratios.
- Total Asset Turnover
-
The total asset turnover ratio exhibits some fluctuations but remains relatively stable within a range of approximately 0.59 to 0.74 over the entire timeframe. Initially, there is an increase from 0.59 in March 2018 to a peak of 0.74 in March 2020, indicating improved efficiency in generating revenue from all assets. However, this is followed by a gradual decline to about 0.61-0.62 by December 2021. This pattern suggests a period of asset utilization improvement up to early 2020, followed by slight erosion of efficiency possibly influenced by external factors such as market conditions or operational changes.
- Equity Turnover
-
The equity turnover ratio experiences a moderate decline throughout the periods analyzed. It rises from 1.06 in March 2018 to a high of 1.19 by December 2018, indicating an initial increase in revenue generated per unit of equity. Thereafter, it shows a downward trend, eventually falling to 0.90 by December 2021. The sustained decline after 2018 points to a reduction in sales efficiency relative to equity, possibly reflecting an increase in equity base or reduced sales growth. This trend is consistent from mid-2019 forward, suggesting ongoing changes in the company's capital structure or operational performance impacting equity utilization.
Net Fixed Asset Turnover
Edwards Lifesciences Corp., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2021 Calculation
Net fixed asset turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Property, plant, and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
A review of the quarterly financial data reveals several notable trends in the company's sales, asset base, and operational efficiency over the examined period.
- Net Sales (US$ in thousands)
- Net sales generally exhibited an upward trajectory from early 2018 through the end of 2019, increasing from approximately $894.8 million in the first quarter of 2018 to around $1.174 billion by the fourth quarter of 2019. This indicates a growth phase during this period. However, in 2020, sales showed increased volatility, with a noticeable dip in the second quarter to $925 million, likely reflecting external business disruptions. Despite this setback, sales rebounded in subsequent quarters, reaching $1.191 billion by the end of 2020 and continuing to grow into 2021, with figures surpassing $1.3 billion in several quarters, suggesting recovery and expansion momentum into 2021.
- Property, Plant, and Equipment, Net (US$ in thousands)
- The company steadily increased its investment in property, plant, and equipment throughout the analyzed timeframe. The net value rose consistently from $711.6 million at the start of 2018 to approximately $1.547 billion by the fourth quarter of 2021. This continuous growth indicates ongoing capital expenditures and asset base expansion, potentially supporting increased production capacity or operational enhancements.
- Net Fixed Asset Turnover (Ratio)
- The net fixed asset turnover ratio, which measures the efficiency of asset utilization to generate sales, demonstrated a declining trend from 4.84 in March 2018 to 3.14 by December 2020. This suggests that despite rising sales and asset growth, the rate at which assets were generating revenue decreased. Post-December 2020, the ratio showed slight improvement, rising to values between 3.16 and 3.48 in 2021, but still remained below the levels observed in 2018 and 2019.
In summary, the financial data illustrates a phase of sales growth accompanied by substantial asset expansion. However, the decline in net fixed asset turnover indicates diminishing efficiency in generating sales from the asset base, which slightly improved but did not fully recover by the end of 2021. The temporary sales dip in 2020 aligns with broader economic challenges during that period, with recovery evident in later quarters.
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 (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
The analysis of the quarterly financial data reveals several notable trends in sales, asset investment, and asset efficiency over the observed periods.
- Net Sales
- The net sales exhibited an overall increasing trend from early 2018 to late 2021, with some fluctuations. Starting at approximately 895 million US dollars in the first quarter of 2018, sales gradually rose to reach a peak of about 1.37 billion US dollars in the second quarter of 2021. However, there was a noticeable dip in the second quarter of 2020 to around 925 million, likely reflecting external challenges during that period. Subsequent quarters saw recovery and growth, stabilizing above the 1.3 billion mark by the end of 2021.
- Property, Plant, and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- Investments in property, plant, and equipment consistently increased over the timeframe, with the net book value rising from roughly 712 million US dollars at the beginning of 2018 to nearly 1.64 billion US dollars by the last quarter of 2021. This steady capital expenditure indicates an ongoing expansion or modernization of fixed assets, possibly to support production capacity or operational efficiency.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, which assesses the efficiency of fixed asset usage in generating sales, demonstrated a declining trend throughout the periods. Initially, the ratio stood at 4.84 in the first quarter of 2018 but decreased gradually to around 3.19 by the fourth quarter of 2021. The decline suggests that while asset levels increased significantly, sales growth did not keep pace proportionally, resulting in lowered asset utilization efficiency.
Overall, the data indicates a strategic increase in capital assets alongside rising sales figures, albeit with reduced turnover efficiency. This pattern might reflect a phase of growth and investment with the anticipation of future revenue increases or the incorporation of more capital-intensive operations. The temporary sales dip in mid-2020 further emphasizes external factors' impact, but a resilient recovery follows. The declining fixed asset turnover ratio warrants close monitoring to ensure that asset investments translate effectively into sales and operational performance.
Total Asset Turnover
Edwards Lifesciences Corp., total asset turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2021 Calculation
Total asset turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data presents several key trends in net sales, total assets, and total asset turnover over a series of quarterly periods.
- Net Sales
- Net sales generally exhibited an upward trend from the first quarter of 2018 through the end of 2019, increasing from approximately 895 million US dollars to about 1.17 billion US dollars. However, in early 2020, net sales showed notable volatility, with a decline to 925 million US dollars in the second quarter of 2020, likely influenced by external factors impacting demand. Following this decline, sales recovered steadily through 2020 and into 2021, culminating in a peak of around 1.38 billion US dollars in the second quarter of 2021 before a slight dip in the subsequent quarter. Overall, net sales grew significantly over the observation period, reflecting robust revenue generation despite short-term disruptions.
- Total Assets
- Total assets demonstrated a mostly increasing trend across the quarters. Starting at approximately 5.83 billion US dollars in the first quarter of 2018, total assets saw some fluctuations but generally expanded, reaching approximately 8.5 billion US dollars by the last quarter of 2021. The asset base experienced a dip at the end of 2018 but rebounded solidly thereafter, with consistent asset growth particularly evident from mid-2020 onwards. This increase indicates considerable investment and accumulation of resources to support business operations and growth initiatives.
- Total Asset Turnover
- Total asset turnover, which measures the efficiency in using assets to generate sales, fluctuated modestly but showed a declining trend towards the end of the period. Initial values hovered around 0.60 to 0.70 in 2018 and 2019, peaking at 0.74 in the first quarter of 2020. After this peak, the ratio declined gradually to about 0.62 by the end of 2021. This decline suggests that while the company’s assets increased substantially, the growth in sales did not keep pace proportionally, indicating slightly reduced efficiency in asset utilization over time.
In summary, the data reveals steady growth in net sales and total assets over the period, with some interruptions in sales attributable to external factors in 2020. The gradual decline in total asset turnover implies a relative decrease in how effectively assets have been employed to generate sales, which could warrant further operational analysis. The overall trends suggest a scaling business with considerable asset accumulation supporting increasing revenue, albeit with potential efficiency challenges emerging in the latest quarters.
Equity Turnover
Edwards Lifesciences Corp., equity turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2021 Calculation
Equity turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally upward trend from March 2018 through December 2019, increasing from approximately 895 million USD to over 1.17 billion USD. In 2020, a decline occurred in the second quarter, coinciding with a decrease to 925 million USD, likely reflecting external market disturbances. Recovery followed in the subsequent quarters of 2020 and continued into 2021, with sales peaking at around 1.38 billion USD in June 2021 before slightly moderating by the end of the year.
- Stockholders’ Equity
- Stockholders' equity displayed an overall increasing trend across the periods examined. Starting near 3.25 billion USD in early 2018, equity experienced some fluctuations but generally increased, reaching approximately 4.15 billion USD by the end of 2019. Despite a slight dip in early 2020, equity values rebounded steadily through 2020 and 2021, reaching nearly 5.84 billion USD by the end of 2021, suggesting ongoing capitalization or retained earnings growth.
- Equity Turnover
- The equity turnover ratio showed variability with a modest downward trend over the period. Ratios ranged between approximately 1.19 and 0.9, with higher turnover observed in 2018 and 2019, indicating more efficient use of equity for generating sales in those years. However, from late 2019 onwards, the ratio gradually declined, crossing below 1.0 in 2020 and further decreasing through 2021, which may indicate that sales growth did not keep pace with increases in equity during these years.
- Summary and Insights
- The data indicates that net sales and stockholders' equity increased substantially over the four-year span, with some volatility evident in sales during 2020. The equity turnover ratio’s gradual decline suggests that while the company's equity base expanded significantly, the proportional growth in sales was less pronounced in the latter years, pointing to potential changes in operating efficiency or investment strategies. This divergence warrants further analysis to understand underlying causes and implications for future performance.