Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Edwards Lifesciences Corp., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrated a consistent upward trend over the observed periods. Starting at 74.08% in the first quarter of 2018, it gradually increased with minor fluctuations, reaching 76.13% by the last quarter of 2021. This steady improvement indicates effective cost management relative to revenue and enhanced production efficiency.
- Operating Profit Margin
- The operating profit margin exhibited greater variability compared to the gross margin. It began at 30.46% in Q1 2018, followed by a notable decline in Q4 2018 to 20.1%. The margin fluctuated in subsequent quarters, reaching a low of 18.36% in Q2 2020, before rebounding sharply to above 32% by mid-2021 and maintaining a strong position around 32.3% at year-end 2021. These fluctuations suggest periods of varying operational efficiency or changes in operating expenses, with significant improvement observed in the latter part of the timeline.
- Net Profit Margin
- The net profit margin presented a generally positive trajectory with some volatility. Initially, it increased from 16.25% in early 2018 to above 20% in early 2019, then fluctuated between approximately 17% and 24% until mid-2020. Subsequently, the margin rose substantially, peaking near 29.69% in Q2 2021, and stabilizing around 28.73% by the end of 2021. This pattern reflects improved profitability after accounting for all expenses, taxes, and costs, especially pronounced in the latter quarters.
- Return on Equity (ROE)
- The return on equity displayed a pattern of initial growth from 17.25% in Q1 2018 to a high of 25.24% in Q4 2019, followed by a notable decline during 2020 to below 19%. However, a marked recovery occurred in 2021 with ROE peaking at 28.49% mid-year, slightly decreasing but remaining robust at 25.76% by the final quarter. This suggests cyclical influences on equity returns, with recent periods reflecting improved shareholder value generation.
- Return on Assets (ROA)
- Return on assets followed a trend similar to ROE, beginning at 9.61% in early 2018 and rising steadily to 18.23% by Q1 2020. A decline occurred through 2020 to just above 11%, followed by a recovery in 2021, reaching a peak of 19.09% mid-year and settling around 17.68% at year-end. This reflects changes in asset utilization efficiency, with recent improvements indicating better conversion of assets into net earnings.
Return on Sales
Return on Investment
Gross Profit Margin
Edwards Lifesciences Corp., gross profit margin 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) | |||||||||||||||||||||
| Gross profit | 1,020,200) | 998,500) | 1,041,700) | 923,200) | 895,400) | 859,900) | 686,800) | 863,600) | 887,900) | 801,600) | 782,900) | 761,200) | 743,000) | 681,700) | 697,500) | 661,200) | |||||
| Net sales | 1,329,700) | 1,310,200) | 1,376,000) | 1,216,600) | 1,191,700) | 1,140,900) | 925,000) | 1,128,700) | 1,174,100) | 1,094,000) | 1,086,900) | 993,000) | 977,700) | 906,600) | 943,700) | 894,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 76.13% | 75.74% | 75.53% | 75.22% | 75.36% | 75.50% | 74.97% | 74.40% | 74.37% | 74.40% | 74.89% | 75.46% | 74.77% | 74.13% | 73.84% | 74.08% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 52.21% | 52.01% | 50.69% | 51.25% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Elevance Health Inc. | 17.09% | 17.30% | 17.57% | 19.38% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Intuitive Surgical Inc. | 69.32% | 69.12% | 68.69% | 66.48% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Medtronic PLC | 65.19% | 63.85% | 64.57% | 65.76% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| UnitedHealth Group Inc. | 23.60% | 23.75% | 23.80% | 25.79% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
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
Gross profit margin = 100
× (Gross profitQ4 2021
+ Gross profitQ3 2021
+ Gross profitQ2 2021
+ Gross profitQ1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × (1,020,200 + 998,500 + 1,041,700 + 923,200)
÷ (1,329,700 + 1,310,200 + 1,376,000 + 1,216,600)
= 76.13%
2 Click competitor name to see calculations.
- Sales and Gross Profit Trends
- The net sales demonstrated a general upward trajectory from the first quarter of 2018 through the end of 2021. Starting at approximately $895 million in March 2018, sales peaked around $1.38 billion in June 2021 before slightly declining towards the end of the year to around $1.33 billion in December 2021. This suggests an overall growth in revenue, with some volatility observed in mid-2020, likely reflecting external market or operational factors.
- Gross profit mirrored the sales trend, increasing from roughly $661 million in March 2018 to a peak of about $1.04 billion in June 2021. After this peak, gross profit experienced a minor decrease but remained elevated compared to earlier periods, ending December 2021 at approximately $1.02 billion. The parallel movement of gross profit with sales indicates consistent profitability in core operations.
- Gross Profit Margin Analysis
- The gross profit margin showed a steady and positive trend over the observed period. Starting just above 74% in early 2018, the margin improved gradually, reaching over 76% by the end of 2021. This upward movement indicates enhanced efficiency in managing cost of goods sold relative to sales, reflecting potential improvements in pricing strategies, cost control, or product mix.
- Seasonal and Quarterly Fluctuations
- Some quarterly fluctuations are evident, particularly a noticeable dip in sales and gross profit around the middle of 2020, where net sales dropped from over $1.17 billion at year-end 2019 to approximately $925 million in June 2020. This coincides with a similar reduction in gross profit. The margins, however, remained relatively stable or slightly improved during this period, suggesting that the company maintained profitability standards despite reduced volumes.
- Summary
- Overall, the data reveals sustained growth in sales and gross profit over four years, accompanied by a consistent improvement in gross profit margin. The company appears to have managed cost and pricing effectively, as demonstrated by margin enhancement. Although short-term sales volatility occurred, particularly in 2020, operational efficiency was retained. These trends suggest a strong market position with effective cost management contributing to profitability growth.
Operating Profit Margin
Edwards Lifesciences Corp., operating profit margin calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Operating income (loss) | 374,400) | 390,300) | 542,100) | 383,500) | 351,400) | 357,800) | (169,700) | 358,100) | 310,800) | 294,300) | 267,500) | 274,200) | (5,300) | 248,900) | 252,100) | 252,500) | |||||
| Net sales | 1,329,700) | 1,310,200) | 1,376,000) | 1,216,600) | 1,191,700) | 1,140,900) | 925,000) | 1,128,700) | 1,174,100) | 1,094,000) | 1,086,900) | 993,000) | 977,700) | 906,600) | 943,700) | 894,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 32.30% | 32.73% | 33.19% | 20.63% | 20.46% | 19.62% | 18.36% | 27.45% | 26.38% | 20.01% | 19.81% | 20.15% | 20.10% | 30.15% | 29.89% | 30.46% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 19.56% | 20.04% | 18.46% | 17.97% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Elevance Health Inc. | 5.15% | 4.91% | 3.68% | 4.83% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Intuitive Surgical Inc. | 31.89% | 32.55% | 31.27% | 26.01% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Medtronic PLC | 14.89% | 11.44% | 12.77% | 14.25% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| UnitedHealth Group Inc. | 8.40% | 7.91% | 7.73% | 9.24% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
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
Operating profit margin = 100
× (Operating income (loss)Q4 2021
+ Operating income (loss)Q3 2021
+ Operating income (loss)Q2 2021
+ Operating income (loss)Q1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × (374,400 + 390,300 + 542,100 + 383,500)
÷ (1,329,700 + 1,310,200 + 1,376,000 + 1,216,600)
= 32.30%
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally increasing trend from March 2018 through December 2021, starting at approximately 895 million USD and rising to nearly 1.33 billion USD by the end of 2021. There was a notable dip in the second quarter of 2020, where sales decreased to 925 million USD, likely reflecting the impact of external disruptions during that period. However, sales quickly rebounded thereafter, reaching record highs in 2021, with the peak occurring in the second quarter.
- Operating Income (Loss)
- The operating income showed some volatility over the examined timeframe. It consistently remained positive and relatively stable through 2018 and 2019, with figures generally fluctuating between 248 million and 310 million USD per quarter. There was a significant loss recorded in the fourth quarter of 2018, marking a negative 5.3 million USD, which is a clear outlier compared to other periods. Similarly, the second quarter of 2020 showed a substantial operating loss of 169.7 million USD, likely corresponding with the drop in net sales during the same period. Post-2020, operating income recovered strongly, reaching a high of over 542 million USD in the second quarter of 2021, before slightly declining but remaining elevated relative to earlier years.
- Operating Profit Margin
- The operating profit margin displayed fluctuations but generally remained robust across the period. Margins hovered around 20-30% for much of 2018 and 2019, with a sharp decline during the fourth quarter of 2018 and the second quarter of 2020, coinciding with the operating losses in those quarters. After covid-related disruptions, profit margins significantly improved in 2021, peaking at above 33% in the second quarter before remaining above 32% into the year's final quarter. This indicates a strong recovery in operational efficiency and profitability in the later periods.
- Overall Insights
- The data reveals cyclical challenges, notably during late 2018 and mid-2020, which caused temporary declines in both sales and profitability. Nonetheless, the company demonstrated a strong rebound, with consistent growth in net sales and improving operating income and margins through 2021. The resilience and recovery highlighted by the financial performance suggest effective management and adaptation to market conditions post-disruption.
Net Profit Margin
Edwards Lifesciences Corp., net profit margin 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 income (loss) | 335,300) | 340,100) | 489,500) | 338,200) | 309,500) | 325,200) | (121,900) | 310,600) | 280,200) | 274,700) | 242,300) | 249,700) | 7,000) | 225,900) | 282,700) | 206,600) | |||||
| Net sales | 1,329,700) | 1,310,200) | 1,376,000) | 1,216,600) | 1,191,700) | 1,140,900) | 925,000) | 1,128,700) | 1,174,100) | 1,094,000) | 1,086,900) | 993,000) | 977,700) | 906,600) | 943,700) | 894,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 28.73% | 29.00% | 29.69% | 19.02% | 18.77% | 18.18% | 17.21% | 24.71% | 24.08% | 18.64% | 18.29% | 20.03% | 19.40% | 19.61% | 18.50% | 16.25% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 16.42% | 17.12% | 15.85% | 15.33% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Elevance Health Inc. | 4.46% | 4.17% | 3.32% | 3.82% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Intuitive Surgical Inc. | 29.85% | 30.78% | 31.43% | 25.78% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Medtronic PLC | 11.97% | 10.36% | 12.69% | 15.80% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| UnitedHealth Group Inc. | 6.06% | 5.56% | 5.37% | 6.46% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
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 profit margin = 100
× (Net income (loss)Q4 2021
+ Net income (loss)Q3 2021
+ Net income (loss)Q2 2021
+ Net income (loss)Q1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × (335,300 + 340,100 + 489,500 + 338,200)
÷ (1,329,700 + 1,310,200 + 1,376,000 + 1,216,600)
= 28.73%
2 Click competitor name to see calculations.
- Net Income (Loss)
- Over the observed periods, net income exhibited notable fluctuations. Starting from a strong figure in early 2018, net income experienced steady growth through most quarters of 2018 and 2019. However, in the second quarter of 2020, there was a significant decline resulting in a net loss. Following this downturn, net income rebounded robustly for the remainder of 2020 and continued to increase into 2021, reaching the highest quarterly values recorded in the dataset.
- Net Sales
- Net sales showed a general upward trend across the time periods, reflecting consistent revenue growth. From 2018 through the first quarter of 2020, sales increased gradually each quarter. A decline occurred in the second quarter of 2020, aligning with the period of net income loss. Post this dip, sales recovered and surpassed previous levels through 2021, indicating strong revenue performance despite the earlier interruption.
- Net Profit Margin
- The net profit margin maintained a relatively stable pattern with minor fluctuations during 2018 and 2019, ranging mostly between approximately 16% and 24%. In the second quarter of 2020, the margin declined sharply, coinciding with the net income loss. Following this, profit margins improved significantly, peaking at nearly 30% in early 2021, and remaining close to this elevated level throughout 2021. This suggests improved profitability and operational efficiency in the latter periods.
- Overall Trends and Insights
- The data indicates resilience in financial performance, with net sales and net income showing strong recovery following an adverse event in early 2020. The temporary downturn in Q2 2020 is notable but was promptly followed by growth surpassing previous highs. The improvement in net profit margin in 2021 points to enhanced cost management or pricing power, contributing to higher profitability. The company’s ability to rebound quickly from the 2020 dip suggests effective strategic responses to external challenges during that period.
Return on Equity (ROE)
Edwards Lifesciences Corp., ROE 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 income (loss) | 335,300) | 340,100) | 489,500) | 338,200) | 309,500) | 325,200) | (121,900) | 310,600) | 280,200) | 274,700) | 242,300) | 249,700) | 7,000) | 225,900) | 282,700) | 206,600) | |||||
| Stockholders’ equity | 5,835,900) | 5,541,300) | 5,133,300) | 4,658,400) | 4,574,300) | 4,210,300) | 3,839,100) | 3,901,100) | 4,148,300) | 3,814,800) | 3,500,300) | 3,447,500) | 3,140,400) | 3,361,300) | 3,164,200) | 3,245,700) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 25.76% | 26.66% | 28.49% | 18.27% | 18.00% | 18.86% | 19.37% | 28.40% | 25.24% | 20.28% | 20.71% | 22.20% | 23.00% | 21.19% | 20.75% | 17.25% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 19.75% | 21.04% | 18.86% | 17.06% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Elevance Health Inc. | 16.93% | 15.44% | 12.10% | 13.92% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Intuitive Surgical Inc. | 14.32% | 14.80% | 14.97% | 11.56% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Medtronic PLC | 7.01% | 5.70% | 7.05% | 8.77% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| UnitedHealth Group Inc. | 24.09% | 21.95% | 21.03% | 25.42% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
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
ROE = 100
× (Net income (loss)Q4 2021
+ Net income (loss)Q3 2021
+ Net income (loss)Q2 2021
+ Net income (loss)Q1 2021)
÷ Stockholders’ equity
= 100 × (335,300 + 340,100 + 489,500 + 338,200)
÷ 5,835,900 = 25.76%
2 Click competitor name to see calculations.
The analysis of the quarterly financial performance reveals several notable patterns and trends. Net income experienced substantial fluctuations over the observed period. Initial quarters showed consistent positive net income, peaking in March 2019 at approximately $249.7 million. However, a sharp decline occurred in June 2020, resulting in a net loss of around $121.9 million, the only loss recorded within the timeframe. This loss was followed by a significant recovery in subsequent quarters, with net income reaching new highs, such as $489.5 million in June 2021.
Stockholders’ equity exhibited overall growth during the period, rising from roughly $3.25 billion in March 2018 to about $5.84 billion by December 2021. Although there were minor declines in certain quarters, such as between March and June 2018, the long-term trend is marked by a steady increase in equity, suggesting sustained capital accumulation and potentially retained earnings reinvested into the company.
Return on equity (ROE) demonstrated variability but generally maintained an upward trajectory. Early periods reflected ROE values in the high teens to low twenties, peaking at 28.4% in March 2020 before the net loss. The loss period saw a dip to approximately 19.37% in June 2020, followed by a restoration and subsequent increase, with ROE reaching above 28% again by mid-2021.
- Net Income (Loss)
- Displayed significant volatility with strong growth phases interrupted by a notable dip resulting in a loss during mid-2020. The ability to rebound quickly and surpass previous income levels indicates resilience and effective management of challenges.
- Stockholders' Equity
- Showed a consistent ascending trend with minor fluctuations, reflecting solid financial foundation and accumulation of shareholder value over the examined periods.
- Return on Equity (ROE)
- Though variable, the ROE maintained robust levels overall, demonstrating efficient utilization of equity to generate profits. The mid-2020 dip corresponds with the net loss but recovery shortly afterward underscores operational effectiveness.
In summary, the company experienced growth in shareholders' equity and maintained strong profitability except for a transient loss mid-2020. The financial recovery afterward, alongside high ROE figures, indicates strength in profit generation and equity management following periods of challenge.
Return on Assets (ROA)
Edwards Lifesciences Corp., ROA 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 income (loss) | 335,300) | 340,100) | 489,500) | 338,200) | 309,500) | 325,200) | (121,900) | 310,600) | 280,200) | 274,700) | 242,300) | 249,700) | 7,000) | 225,900) | 282,700) | 206,600) | |||||
| Total assets | 8,502,600) | 8,160,300) | 7,662,100) | 7,213,700) | 7,237,100) | 6,800,800) | 6,424,100) | 6,076,100) | 6,488,100) | 5,966,300) | 5,573,500) | 5,469,300) | 5,323,700) | 5,958,200) | 5,686,100) | 5,825,100) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 17.68% | 18.10% | 19.09% | 11.80% | 11.38% | 11.68% | 11.58% | 18.23% | 16.14% | 12.97% | 13.01% | 13.99% | 13.57% | 11.96% | 11.55% | 9.61% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 9.40% | 9.82% | 8.70% | 7.86% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Elevance Health Inc. | 6.26% | 5.63% | 4.40% | 4.93% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Intuitive Surgical Inc. | 12.58% | 13.06% | 13.20% | 10.17% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Medtronic PLC | 3.87% | 2.97% | 3.69% | 4.70% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| UnitedHealth Group Inc. | 8.15% | 7.24% | 6.90% | 8.23% | — | — | — | — | — | — | — | — | — | — | — | — | |||||
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
ROA = 100
× (Net income (loss)Q4 2021
+ Net income (loss)Q3 2021
+ Net income (loss)Q2 2021
+ Net income (loss)Q1 2021)
÷ Total assets
= 100 × (335,300 + 340,100 + 489,500 + 338,200)
÷ 8,502,600 = 17.68%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited a generally positive trend over the period analyzed, starting at $206.6 million in the first quarter of 2018 and reaching a peak of $489.5 million in the second quarter of 2021. There were notable fluctuations, such as a sharp decline to $7 million in the last quarter of 2018 and a significant loss of $121.9 million in the second quarter of 2020. Despite these downturns, the company recovered strongly, with subsequent quarters demonstrating substantial profitability, attaining levels above $300 million in most recent quarters.
- Total Assets
- Total assets showed a consistent upward trajectory throughout the timeframe, increasing from approximately $5.83 billion in the first quarter of 2018 to approximately $8.50 billion by the end of 2021. This growth indicates steady expansion of the company's asset base, with occasional modest dips such as in the last quarter of 2018. Overall, the asset base expanded by nearly 46% over the course of the reported periods.
- Return on Assets (ROA)
- The company's ROA reflected variability but generally remained strong, with percentages mostly above 10%. The metric began at 9.61% in the first quarter of 2018 and climbed to a high of 19.09% in the second quarter of 2021. Lower values, including a trough of 11.38% at the end of 2020, coincided with periods of reduced net income or losses. The overall pattern suggests effective utilization of assets to generate profits, with enhanced efficiency especially notable in the later quarters.
- Summary of Observations
- The financial data reflects a company experiencing growth in asset base coupled with generally stable and improving profitability metrics. Despite periods of volatility, particularly in net income, the ability to rebound and sustain elevated net income and ROA levels signifies strong operational performance. The expanding asset base supports this performance, indicating potential reinvestment and capacity for further growth.