Edwards Lifesciences Corp (EW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.46% | 77.02% | 79.93% | 76.13% | 75.36% |
| Operating profit margin | 25.35% | 25.55% | 32.49% | 25.77% | 37.12% |
| Pretax margin | 28.46% | 26.61% | 32.84% | 32.53% | 20.90% |
| Net profit margin | 76.75% | 23.35% | 28.28% | 28.73% | 18.77% |
The profitability ratios of Edwards Lifesciences Corp have shown a varying trend over the past five years.
1. Gross Profit Margin: The gross profit margin has consistently improved from 75.36% in 2020 to 79.46% in 2024, indicating that the company has been able to effectively manage its production costs and increase its profitability on sales.
2. Operating Profit Margin: The operating profit margin experienced fluctuations, with a significant decrease in 2021 to 25.77% before gradually increasing to 25.35% in 2024. This suggests that although the company has been able to control its operating expenses, there may have been challenges in generating higher operating profits in certain years.
3. Pretax Margin: The pretax margin has shown a mixed trend, with a peak of 32.84% in 2022. However, there was a decline in 2023 to 26.61%. This ratio reflects the company's ability to generate profits before accounting for taxes and indicates fluctuations in the company's taxable income over the years.
4. Net Profit Margin: The net profit margin saw a significant increase from 23.35% in 2023 to 76.75% in 2024. This improvement may be attributed to various factors such as efficient cost management, revenue growth, or one-time gains.
Overall, while Edwards Lifesciences Corp has demonstrated strong profitability metrics, it is important to further analyze the underlying reasons for the fluctuations in these ratios to understand the company's financial performance more comprehensively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.56% | 16.38% | 21.09% | 15.86% | 22.50% |
| Return on assets (ROA) | 31.98% | 14.98% | 18.35% | 17.68% | 11.38% |
| Return on total capital | 15.68% | 23.07% | 30.89% | 28.99% | 20.53% |
| Return on equity (ROE) | 41.75% | 21.09% | 26.21% | 25.76% | 18.00% |
Based on the provided data for Edwards Lifesciences Corp, we can analyze the profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Edwards Lifesciences Corp ranged from 10.56% to 22.50% over the period analyzed, with the highest value in 2020. This ratio indicates how effectively the company generates operating income relative to its total assets.
2. Return on Assets (ROA):
- The ROA for Edwards Lifesciences Corp varied between 11.38% and 31.98% during the period under review, with the highest value recorded in 2024. ROA reflects the company's ability to generate profit from its assets, with higher values indicating better efficiency in asset utilization.
3. Return on Total Capital:
- The Return on Total Capital ranged from 15.68% to 30.89%, showing fluctuations in the company's ability to generate a return for both equity and debt holders over the analyzed years. A higher return on total capital indicates effective utilization of all capital invested in the company.
4. Return on Equity (ROE):
- The ROE for Edwards Lifesciences Corp varied between 18.00% and 41.75% over the period, with the highest value recorded in 2024. ROE measures the company's ability to generate profits from shareholders' equity, indicating the efficiency of turning equity investments into profit.
Overall, the company's profitability ratios show fluctuations over the years, with varying levels of efficiency in utilizing assets, generating returns for both equity and debt holders, and earning profits from shareholders' equity. Investors and analysts may further investigate the reasons behind these fluctuations to assess the company's financial performance and prospects.