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% | 51.32% | 47.75% | |
| Bristol-Myers Squibb Co. | 78.57% | 72.31% | 69.10% | 70.98% | 70.80% | |
| CVS Health Corp. | 17.48% | 18.01% | 17.41% | 15.92% | 15.45% | |
| Danaher Corp. | 60.95% | 55.98% | 55.74% | 55.83% | 55.61% | |
| Elevance Health Inc. | 17.09% | 19.71% | 18.77% | 21.29% | 18.89% | |
| Intuitive Surgical Inc. | 69.32% | 65.65% | 69.45% | 69.92% | 70.12% | |
| Medtronic PLC | 65.19% | 67.41% | 70.04% | 69.77% | 68.73% | |
| UnitedHealth Group Inc. | 23.60% | 25.62% | 23.19% | 23.33% | 22.98% | |
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% | 11.94% | 6.30% | |
| Bristol-Myers Squibb Co. | 15.91% | -21.60% | 22.62% | 22.69% | 17.39% | |
| CVS Health Corp. | 4.54% | 5.19% | 4.69% | 2.07% | 5.15% | |
| Danaher Corp. | 25.35% | 18.99% | 18.25% | 17.11% | 16.48% | |
| Elevance Health Inc. | 5.15% | 4.97% | 5.49% | 5.55% | 4.50% | |
| Intuitive Surgical Inc. | 31.89% | 24.09% | 30.69% | 32.21% | 33.71% | |
| Medtronic PLC | 14.89% | 16.57% | 20.51% | 22.20% | 17.94% | |
| UnitedHealth Group Inc. | 8.40% | 8.76% | 8.19% | 7.71% | 7.60% | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 8.50% | 6.25% | 8.26% | 7.53% | 7.58% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 15.63% | 11.30% | 13.81% | 13.27% | 14.16% | |
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% | 7.74% | 1.74% | |
| Bristol-Myers Squibb Co. | 15.08% | -21.20% | 13.15% | 21.81% | 4.85% | |
| CVS Health Corp. | 2.72% | 2.68% | 2.59% | -0.31% | 3.58% | |
| Danaher Corp. | 21.84% | 16.36% | 16.80% | 13.33% | 13.60% | |
| Elevance Health Inc. | 4.46% | 3.78% | 4.66% | 4.11% | 4.31% | |
| Intuitive Surgical Inc. | 29.85% | 24.33% | 30.80% | 30.29% | 21.09% | |
| Medtronic PLC | 11.97% | 16.56% | 15.16% | 10.36% | 13.56% | |
| UnitedHealth Group Inc. | 6.06% | 6.03% | 5.76% | 5.33% | 5.28% | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.58% | 4.13% | 5.83% | 4.75% | 5.18% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 13.09% | 8.19% | 11.46% | 9.68% | 8.05% | |
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% | 7.76% | 1.54% | |
| Bristol-Myers Squibb Co. | 19.46% | -23.84% | 6.66% | 35.07% | 8.58% | |
| CVS Health Corp. | 10.54% | 10.35% | 10.39% | -1.02% | 17.57% | |
| Danaher Corp. | 14.24% | 9.17% | 9.94% | 9.40% | 9.45% | |
| Elevance Health Inc. | 16.93% | 13.77% | 15.15% | 13.14% | 14.50% | |
| Intuitive Surgical Inc. | 14.32% | 10.90% | 16.69% | 16.89% | 13.97% | |
| Medtronic PLC | 7.01% | 9.44% | 9.25% | 6.12% | 8.01% | |
| UnitedHealth Group Inc. | 24.09% | 23.52% | 24.02% | 23.19% | 22.10% | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 15.73% | 9.48% | 12.76% | 10.91% | 12.58% | |
| ROE, Industry | ||||||
| Health Care | 25.10% | 15.53% | 21.67% | 18.26% | 14.09% | |
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% | 3.53% | 0.63% | |
| Bristol-Myers Squibb Co. | 6.40% | -7.61% | 2.65% | 14.06% | 3.00% | |
| CVS Health Corp. | 3.39% | 3.11% | 2.98% | -0.30% | 6.96% | |
| Danaher Corp. | 7.73% | 4.79% | 4.85% | 5.54% | 5.34% | |
| Elevance Health Inc. | 6.26% | 5.28% | 6.21% | 5.24% | 5.45% | |
| Intuitive Surgical Inc. | 12.58% | 9.50% | 14.17% | 14.37% | 11.46% | |
| Medtronic PLC | 3.87% | 5.28% | 5.16% | 3.40% | 4.04% | |
| UnitedHealth Group Inc. | 8.15% | 7.81% | 7.96% | 7.87% | 7.59% | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 6.23% | 3.64% | 4.97% | 4.38% | 5.24% | |
| ROA, Industry | ||||||
| Health Care | 9.17% | 5.26% | 7.49% | 6.56% | 5.31% | |
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. |