Boston Scientific Corp (BSX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.81% | 71.59% | 70.34% | 67.50% | 73.64% |
| Operating profit margin | 16.77% | 13.53% | 10.31% | -0.84% | 14.67% |
| Pretax margin | 14.20% | 9.36% | 9.26% | -0.84% | 6.64% |
| Net profit margin | 11.38% | 5.73% | 8.95% | -0.86% | 45.42% |
Boston Scientific Corp.'s profitability ratios have exhibited fluctuations over the past five years. The gross profit margin has generally been healthy, ranging from 65.05% to 70.97%, with a slight increase in 2023 compared to the previous years. This indicates the company's ability to efficiently manage its production costs.
In terms of operating profit margin, there has been gradual improvement from 6.90% in 2020 to 16.97% in 2023. This suggests enhanced operational efficiency and cost management by the company in recent years.
The pretax margin has shown significant variability, fluctuating from -0.80% in 2020 to 13.95% in 2023. This indicates fluctuations in the company's profitability before accounting for taxes, with a notable improvement in 2023.
The net profit margin has also demonstrated volatility, with a significant decline to -1.15% in 2020 followed by a rebound to 11.03% in 2023. This implies variability in the company's bottom-line profitability after accounting for all expenses and taxes.
Overall, the improvement in operating profit margin and robust net profit margin in 2023 indicate positive momentum for Boston Scientific Corp.'s profitability, despite fluctuations in pretax margin over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.67% | 5.08% | 3.72% | -0.26% | 4.97% |
| Return on assets (ROA) | 4.53% | 2.15% | 3.23% | -0.27% | 15.38% |
| Return on total capital | 12.15% | 9.38% | 7.21% | -0.52% | 10.94% |
| Return on equity (ROE) | 8.25% | 3.97% | 6.26% | -0.54% | 33.87% |
Boston Scientific Corp.'s profitability ratios have shown varied performance over the past five years.
1. Operating return on assets (Operating ROA) has generally been increasing from 5.66% in 2021 to 6.88% in 2023, indicating the company's ability to generate profit from its assets through its core operations. This trend suggests improving operational efficiency and effectiveness.
2. Return on assets (ROA) shows inconsistency, with a significant drop to -0.37% in 2020 and subsequent recovery to 4.47% in 2023. The negative ROA in 2020 may be a cause for concern, but the subsequent improvement indicates that the company has been able to better utilize its assets to generate profits.
3. Return on total capital has been relatively stable, ranging from 7.10% in 2021 to 8.52% in 2023. This ratio indicates how efficiently the company is using its total capital to generate profit.
4. Return on equity (ROE) has also shown fluctuation, with a significant decrease to -0.74% in 2020, followed by a recovery to 8.14% in 2023. This ratio reflects the company's ability to generate profit from shareholders' equity.
Overall, Boston Scientific Corp. has shown improvement in its profitability ratios in recent years, with particular strengths in operating return on assets and return on equity. However, the fluctuation in some ratios, such as ROA, indicates potential areas where the company could focus on improving efficiency and profitability.