Analysis of Reportable Segments
Edwards Lifesciences Corp. operates in 4 segments: United States; Europe; Japan; and Rest of World.
Segment Profit Margin
Edwards Lifesciences Corp., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 69.22% | 68.63% | 68.79% | 66.57% | 65.12% |
| Europe | 51.76% | 50.71% | 50.97% | 47.77% | 47.26% |
| Japan | 65.91% | 63.84% | 61.69% | 59.49% | 56.41% |
| Rest of World | 34.73% | 33.24% | 29.52% | 29.19% | 25.97% |
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).
Profit margins across all reportable segments demonstrate a consistent upward trajectory from 2017 to 2021, indicating broad operational efficiency gains and sustained pricing power across diverse geographic markets. While the baseline profitability varies significantly by region, every segment concluded the five-year period with a higher margin than its 2017 starting point.
- United States Profitability
- The United States region maintains the highest profit margin of all segments, increasing from 65.12% in 2017 to 69.22% in 2021. The trend reflects a stable growth pattern, with a minor fluctuation observed in 2020 before returning to an upward trajectory in the final year.
- Japan Profitability
- Japan exhibits the most consistent year-over-year expansion. Margins rose steadily from 56.41% in 2017 to 65.91% in 2021, representing a strong and uninterrupted upward trend that has narrowed the profitability gap between Japan and the United States.
- Europe Profitability
- European margins show moderate growth, moving from 47.26% in 2017 to 51.76% in 2021. A notable increase occurred between 2018 and 2019, after which margins stabilized above the 50% threshold.
- Rest of World Profitability
- Despite maintaining the lowest margins among all reportable segments, the Rest of World region demonstrates significant relative improvement. Margins increased from 25.97% in 2017 to 34.73% in 2021, indicating substantial margin expansion in these markets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment Profit Margin: United States
Edwards Lifesciences Corp.; United States; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment operating income | 2,051,000) | 1,727,300) | 1,742,300) | 1,368,100) | 1,242,300) |
| Segment net sales | 2,963,100) | 2,516,800) | 2,532,700) | 2,055,200) | 1,907,600) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 69.22% | 68.63% | 68.79% | 66.57% | 65.12% |
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
Segment profit margin = 100 × Segment operating income ÷ Segment net sales
= 100 × 2,051,000 ÷ 2,963,100 = 69.22%
The United States segment demonstrated consistent growth in both revenue and profitability between 2017 and 2021. Net sales and operating income followed a closely correlated upward trajectory, characterized by significant expansions with a brief period of stabilization in 2020.
- Segment Net Sales
- Net sales grew from 1,907,600 thousand US dollars in 2017 to 2,963,100 thousand US dollars in 2021. A substantial increase was observed between 2018 and 2019, followed by a marginal contraction in 2020 before reaching a peak in 2021.
- Segment Operating Income
- Operating income increased from 1,242,300 thousand US dollars in 2017 to 2,051,000 thousand US dollars in 2021. The growth in income closely mirrored the sales trend, indicating a consistent ability to convert increased revenue into operating profit.
- Segment Profit Margin
- The profit margin showed a steady upward trend, expanding from 65.12% in 2017 to 69.22% in 2021. This expansion indicates improving operational efficiency and pricing power over the five-year period. Notably, the margin remained highly stable during 2020, experiencing only a negligible decrease of 0.16 percentage points despite the plateau in net sales, which suggests robust cost control mechanisms.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment Profit Margin: Europe
Edwards Lifesciences Corp.; Europe; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment operating income | 569,100) | 479,300) | 472,000) | 394,800) | 378,400) |
| Segment net sales | 1,099,600) | 945,200) | 926,100) | 826,400) | 800,700) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 51.76% | 50.71% | 50.97% | 47.77% | 47.26% |
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
Segment profit margin = 100 × Segment operating income ÷ Segment net sales
= 100 × 569,100 ÷ 1,099,600 = 51.76%
The European segment demonstrates a consistent upward trajectory in both top-line revenue and bottom-line profitability over the five-year period ending December 31, 2021. A steady expansion in operational scale is accompanied by an improvement in efficiency, as evidenced by the growth in profit margins.
- Segment Net Sales
- Net sales exhibited uninterrupted growth, increasing from 800,700 thousand US dollars in 2017 to 1,099,600 thousand US dollars by 2021. The most significant growth occurred between 2018 and 2019, and again between 2020 and 2021, with the segment surpassing the 1 billion US dollar threshold in the final year of the analysis.
- Segment Operating Income
- Operating income followed a similar growth pattern, rising from 378,400 thousand US dollars in 2017 to 569,100 thousand US dollars in 2021. The growth in operating income generally outpaced the growth in net sales, indicating a positive operating leverage effect within the region.
- Segment Profit Margin
- The profit margin improved from 47.26% in 2017 to 51.76% in 2021. A notable milestone was reached in 2019 when the margin first exceeded the 50% threshold, reaching 50.97%. Despite a marginal contraction to 50.71% in 2020, the margin recovered and reached its peak in 2021.
The correlation between rising net sales and expanding profit margins suggests that the European segment successfully managed its cost structure while scaling operations. The ability to maintain and grow margins above 50% from 2019 through 2021 indicates strong pricing power or enhanced operational efficiencies within the European market.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment Profit Margin: Japan
Edwards Lifesciences Corp.; Japan; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment operating income | 348,000) | 286,400) | 272,300) | 237,000) | 201,100) |
| Segment net sales | 528,000) | 448,600) | 441,400) | 398,400) | 356,500) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 65.91% | 63.84% | 61.69% | 59.49% | 56.41% |
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
Segment profit margin = 100 × Segment operating income ÷ Segment net sales
= 100 × 348,000 ÷ 528,000 = 65.91%
The Japan segment demonstrates a consistent upward trajectory in both revenue generation and profitability between 2017 and 2021. All primary financial indicators show positive growth, with a notable acceleration in operational efficiency over the five-year period.
- Segment Net Sales
- Net sales experienced steady growth, rising from $356.5 million in 2017 to $528.0 million in 2021. While the growth rate showed a slight moderation in 2020, a significant increase occurred in 2021, representing a total increase of approximately 48% over the observed period.
- Segment Operating Income
- Operating income grew consistently, increasing from $201.1 million in 2017 to $348.0 million in 2021. The growth in income outpaced the growth in sales, particularly between 2020 and 2021, where operating income rose by approximately 21.5% in a single year.
- Segment Profit Margin
- The segment profit margin exhibited a linear and continuous increase, starting at 56.41% in 2017 and reaching 65.91% by 2021. This steady expansion of 950 basis points indicates an improvement in cost management, a shift toward higher-margin products, or increased pricing power within the regional market.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment Profit Margin: Rest of World
Edwards Lifesciences Corp.; Rest of World; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment operating income | 185,200) | 150,100) | 127,900) | 115,600) | 92,800) |
| Segment net sales | 533,200) | 451,500) | 433,300) | 396,000) | 357,300) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 34.73% | 33.24% | 29.52% | 29.19% | 25.97% |
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
Segment profit margin = 100 × Segment operating income ÷ Segment net sales
= 100 × 185,200 ÷ 533,200 = 34.73%
The Rest of World segment exhibited consistent growth in both top-line revenue and bottom-line operating performance from 2017 through 2021. This period was characterized by a steady increase in profitability, with operating income growing at a significantly faster rate than net sales, leading to a marked expansion in the segment profit margin.
- Segment Operating Income
- Operating income demonstrated a strong upward trajectory, increasing from 92.8 million US dollars in 2017 to 185.2 million US dollars by 2021. This represents a total increase of approximately 99.6% over the five-year period, with earnings growing consistently each year.
- Segment Net Sales
- Net sales grew from 357.3 million US dollars in 2017 to 533.2 million US dollars in 2021. While the growth was steady, the total increase of approximately 49.2% was substantially lower than the growth rate of operating income, indicating that profitability gains were not driven solely by volume increases.
- Segment Profit Margin
- The profit margin rose consistently from 25.97% in 2017 to 34.73% in 2021. A notable acceleration in margin expansion is observed between 2019 and 2020, where the margin increased by 3.72 percentage points. The overall trend reflects an improvement in operational efficiency and enhanced cost management relative to revenue growth within the segment.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment net sales
Edwards Lifesciences Corp., segment net sales by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 2,963,100) | 2,516,800) | 2,532,700) | 2,055,200) | 1,907,600) |
| Europe | 1,099,600) | 945,200) | 926,100) | 826,400) | 800,700) |
| Japan | 528,000) | 448,600) | 441,400) | 398,400) | 356,500) |
| Rest of World | 533,200) | 451,500) | 433,300) | 396,000) | 357,300) |
| Total | 5,123,900) | 4,362,100) | 4,333,500) | 3,676,000) | 3,422,100) |
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).
Total net sales exhibited a strong upward trajectory over the five-year period from 2017 to 2021, increasing from US$ 3,422.1 million to US$ 5,123.9 million. This overall growth represents an increase of approximately 49.7%. While the growth pattern was generally consistent, a notable deceleration occurred in 2020, where total sales remained nearly flat compared to 2019, before recovering sharply in 2021 with a year-over-year increase of 17.4%.
- United States Market Performance
- The United States remains the primary revenue driver, accounting for the majority of total net sales throughout the period. Sales grew from US$ 1,907.6 million in 2017 to US$ 2,963.1 million in 2021. This region experienced the most significant volatility in 2020, recording a slight decline from US$ 2,532.7 million to US$ 2,516.8 million, which was the only regional decrease observed across all segments during that fiscal year.
- International Market Expansion
- European operations showed consistent growth, expanding from US$ 800.7 million in 2017 to US$ 1,099.6 million by 2021, successfully surpassing the US$ 1 billion threshold. Similarly, both Japan and the Rest of World segments followed parallel growth trajectories. Japan's sales rose from US$ 356.5 million to US$ 528.0 million, while the Rest of World segment increased from US$ 357.3 million to US$ 533.2 million over the same timeframe.
- Geographic Revenue Concentration
- A high concentration of revenue is observed in the North American market. The United States consistently contributed over 55% of total net sales annually. In contrast, the combined contribution of Japan and the Rest of World segments remained relatively stable in proportion to total sales, each contributing approximately 10% of total revenue by the end of 2021.
- Comparative Regional Resilience
- International markets demonstrated greater resilience during the 2020 fiscal year compared to the United States. While the U.S. market contracted slightly, Europe, Japan, and the Rest of World all maintained positive growth rates, suggesting a diversified revenue base that mitigated the impact of regional downturns.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Segment operating income
Edwards Lifesciences Corp., segment operating income by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 2,051,000) | 1,727,300) | 1,742,300) | 1,368,100) | 1,242,300) |
| Europe | 569,100) | 479,300) | 472,000) | 394,800) | 378,400) |
| Japan | 348,000) | 286,400) | 272,300) | 237,000) | 201,100) |
| Rest of World | 185,200) | 150,100) | 127,900) | 115,600) | 92,800) |
| Total | 3,153,300) | 2,643,100) | 2,614,500) | 2,115,500) | 1,914,600) |
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).
Total operating income demonstrated a consistent upward trajectory from 2017 to 2021, increasing from $1.91 billion to $3.15 billion. The growth pattern was characterized by significant expansions in 2019 and 2021, while the 2020 fiscal year exhibited a period of relative stabilization.
- Domestic Market Performance
- The United States segment remains the primary contributor to overall operating income, growing from $1.24 billion in 2017 to $2.05 billion in 2021. While this segment experienced a marginal decline in 2020, it continues to represent the largest share of the total operating income.
- International Market Growth
- Steady growth is observed across all non-US territories. Europe's operating income rose from $378.4 million in 2017 to $569.1 million in 2021. Similarly, Japan showed a consistent year-over-year increase, moving from $201.1 million to $348.0 million over the five-year period.
- Expansion in Emerging Markets
- The Rest of World segment exhibited the highest relative growth rate among all reportable segments, nearly doubling its operating income from $92.8 million in 2017 to $185.2 million in 2021. This indicates a strengthening presence in diversified global markets.
- Aggregate Financial Trend
- Total operating income grew by approximately 65% between 2017 and 2021. The most substantial absolute increase occurred between 2020 and 2021, where total operating income rose by $510.2 million, signaling a strong acceleration in profitability at the end of the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?