Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Edwards Lifesciences Corp., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Edwards Lifesciences Corp. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Edwards Lifesciences Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Edwards Lifesciences Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Edwards Lifesciences Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Edwards Lifesciences Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Gross Profit Margin
Edwards Lifesciences Corp., gross profit margin 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) | ||||||
| Gross profit | 3,983,600) | 3,305,700) | 3,233,600) | 2,783,400) | 2,560,000) | |
| Net sales | 5,232,500) | 4,386,300) | 4,348,000) | 3,722,800) | 3,435,300) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 76.13% | 75.36% | 74.37% | 74.77% | 74.52% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 52.21% | 50.49% | 52.46% | — | — | |
| Cigna Group | 12.41% | 14.43% | 15.57% | — | — | |
| CVS Health Corp. | 17.48% | 18.01% | 17.41% | — | — | |
| Elevance Health Inc. | 17.09% | 19.71% | 18.77% | — | — | |
| Intuitive Surgical Inc. | 69.32% | 65.65% | 69.45% | — | — | |
| Medtronic PLC | 65.19% | 67.41% | 70.04% | 69.77% | — | |
| Shockwave Medical Inc. | 82.53% | 69.03% | 60.03% | — | — | |
| UnitedHealth Group Inc. | 23.60% | 25.62% | 23.19% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 3,983,600 ÷ 5,232,500 = 76.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Edwards Lifesciences Corp. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Edwards Lifesciences Corp., operating profit margin 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) | ||||||
| Operating income | 1,690,300) | 897,600) | 1,146,800) | 748,200) | 1,095,500) | |
| Net sales | 5,232,500) | 4,386,300) | 4,348,000) | 3,722,800) | 3,435,300) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 32.30% | 20.46% | 26.38% | 20.10% | 31.89% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 19.56% | 15.48% | 14.21% | — | — | |
| Cigna Group | 4.60% | 5.12% | 5.31% | — | — | |
| CVS Health Corp. | 4.54% | 5.19% | 4.69% | — | — | |
| Elevance Health Inc. | 5.15% | 4.97% | 5.49% | — | — | |
| Humana Inc. | 3.80% | 6.56% | 4.96% | — | — | |
| Intuitive Surgical Inc. | 31.89% | 24.09% | 30.69% | — | — | |
| Medtronic PLC | 14.89% | 16.57% | 20.51% | 22.20% | — | |
| Shockwave Medical Inc. | -0.37% | -96.86% | -120.76% | — | — | |
| UnitedHealth Group Inc. | 8.40% | 8.76% | 8.19% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.68% | 7.03% | 6.88% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 13.18% | 10.47% | 12.44% | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,690,300 ÷ 5,232,500 = 32.30%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Edwards Lifesciences Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Profit Margin
Edwards Lifesciences Corp., net profit margin 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 income | 1,503,100) | 823,400) | 1,046,900) | 722,200) | 583,600) | |
| Net sales | 5,232,500) | 4,386,300) | 4,348,000) | 3,722,800) | 3,435,300) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 28.73% | 18.77% | 24.08% | 19.40% | 16.99% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 16.42% | 12.99% | 11.56% | — | — | |
| Cigna Group | 3.11% | 5.31% | 3.35% | — | — | |
| CVS Health Corp. | 2.72% | 2.68% | 2.59% | — | — | |
| Elevance Health Inc. | 4.46% | 3.78% | 4.66% | — | — | |
| Humana Inc. | 3.54% | 4.43% | 4.20% | — | — | |
| Intuitive Surgical Inc. | 29.85% | 24.33% | 30.80% | — | — | |
| Medtronic PLC | 11.97% | 16.56% | 15.16% | 10.36% | — | |
| Shockwave Medical Inc. | -3.85% | -96.92% | -119.06% | — | — | |
| UnitedHealth Group Inc. | 6.06% | 6.03% | 5.76% | — | — | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 4.96% | 5.20% | 4.84% | — | — | |
| Net Profit Margin, Industry | ||||||
| Health Care | 10.89% | 7.77% | 10.20% | — | — | |
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 profit margin = 100 × Net income ÷ Net sales
= 100 × 1,503,100 ÷ 5,232,500 = 28.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Edwards Lifesciences Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Equity (ROE)
Edwards Lifesciences Corp., ROE 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 income | 1,503,100) | 823,400) | 1,046,900) | 722,200) | 583,600) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Profitability Ratio | ||||||
| ROE1 | 25.76% | 18.00% | 25.24% | 23.00% | 19.74% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 19.75% | 13.71% | 11.86% | — | — | |
| Cigna Group | 11.39% | 16.81% | 11.26% | — | — | |
| CVS Health Corp. | 10.54% | 10.35% | 10.39% | — | — | |
| Elevance Health Inc. | 16.93% | 13.77% | 15.15% | — | — | |
| Humana Inc. | 18.24% | 24.53% | 22.49% | — | — | |
| Intuitive Surgical Inc. | 14.32% | 10.90% | 16.69% | — | — | |
| Medtronic PLC | 7.01% | 9.44% | 9.25% | 6.12% | — | |
| Shockwave Medical Inc. | -3.78% | -29.11% | -26.53% | — | — | |
| UnitedHealth Group Inc. | 24.09% | 23.52% | 24.02% | — | — | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 15.04% | 15.13% | 14.24% | — | — | |
| ROE, Industry | ||||||
| Health Care | 23.00% | 16.14% | 21.17% | — | — | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,503,100 ÷ 5,835,900 = 25.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Edwards Lifesciences Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Assets (ROA)
Edwards Lifesciences Corp., ROA 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 income | 1,503,100) | 823,400) | 1,046,900) | 722,200) | 583,600) | |
| Total assets | 8,502,600) | 7,237,100) | 6,488,100) | 5,323,700) | 5,695,800) | |
| Profitability Ratio | ||||||
| ROA1 | 17.68% | 11.38% | 16.14% | 13.57% | 10.25% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 9.40% | 6.20% | 5.43% | — | — | |
| Cigna Group | 3.46% | 5.44% | 3.28% | — | — | |
| CVS Health Corp. | 3.39% | 3.11% | 2.98% | — | — | |
| Elevance Health Inc. | 6.26% | 5.28% | 6.21% | — | — | |
| Humana Inc. | 6.61% | 9.63% | 9.31% | — | — | |
| Intuitive Surgical Inc. | 12.58% | 9.50% | 14.17% | — | — | |
| Medtronic PLC | 3.87% | 5.28% | 5.16% | 3.40% | — | |
| Shockwave Medical Inc. | -2.64% | -24.15% | -22.04% | — | — | |
| UnitedHealth Group Inc. | 8.15% | 7.81% | 7.96% | — | — | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 5.62% | 5.60% | 5.17% | — | — | |
| ROA, Industry | ||||||
| Health Care | 8.24% | 5.46% | 7.22% | — | — | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 1,503,100 ÷ 8,502,600 = 17.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Edwards Lifesciences Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |