Edwards Lifesciences Corp (EW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.11% | 80.23% | 76.33% | 75.42% | 74.62% |
| Operating profit margin | 25.58% | 32.61% | 32.39% | 20.48% | 26.47% |
| Pretax margin | 26.70% | 32.96% | 32.61% | 20.92% | 26.92% |
| Net profit margin | 23.38% | 28.38% | 28.80% | 18.79% | 24.16% |
Edwards Lifesciences Corp has shown a consistent trend of profitability over the past five years based on the profitability ratios.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable, ranging from 74.37% in 2019 to 79.93% in 2022. This indicates that Edwards Lifesciences Corp has been effectively managing its production costs and pricing strategies to maintain a healthy level of profitability on its products.
2. Operating Profit Margin: The operating profit margin has shown fluctuations over the years, with a notable increase from 20.79% in 2020 to 33.22% in 2022. This suggests that the company has been able to improve its operational efficiency and cost management, leading to higher profitability from core business activities.
3. Pretax Margin: The pretax margin has also exhibited variation, with a significant jump in 2022 to 32.84% from 20.90% in 2020. This indicates that Edwards Lifesciences Corp has been successful in optimizing its pre-tax earnings relative to its revenue, possibly through strategic tax planning and improved income generation.
4. Net Profit Margin: The net profit margin has shown a consistent upward trend over the years, ranging from 18.77% in 2020 to 28.28% in 2022. This reflects the company's ability to effectively manage its expenses, interest payments, and tax obligations to generate higher net income relative to its revenue.
In summary, Edwards Lifesciences Corp has demonstrated overall strong profitability performance, with improvements in operating efficiency and net income margin over the years, indicating sound financial management and operational effectiveness.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.38% | 21.09% | 19.88% | 12.40% | 17.68% |
| Return on assets (ROA) | 14.98% | 18.35% | 17.68% | 11.38% | 16.14% |
| Return on total capital | 22.34% | 27.31% | 26.28% | 17.36% | 24.18% |
| Return on equity (ROE) | 21.09% | 26.21% | 25.76% | 18.00% | 25.24% |
The profitability ratios of Edwards Lifesciences Corp have shown a generally positive trend over the last five years.
- The Operating Return on Assets (Operating ROA) has fluctuated during this period, with a peak of 21.56% in 2022 and a low of 12.60% in 2020, but has overall remained healthy, reflecting the company's ability to generate operating profits from its assets.
- The Return on Assets (ROA) has also experienced fluctuations, with a peak of 18.35% in 2022 and a low of 11.38% in 2020, but has shown a consistent improvement in profitability over the years.
- The Return on Total Capital ratio has consistently increased over the five-year period, reaching a high of 27.93% in 2022, indicating that the company is effectively utilizing both debt and equity to generate returns for its investors.
- The Return on Equity (ROE) has demonstrated a similar upward trend, with a peak of 26.21% in 2022, showing that the company is efficiently generating profits from the shareholders' equity invested in the business.
Overall, the profitability ratios highlight Edwards Lifesciences Corp's ability to effectively manage its assets, generate profits, and provide returns for both debt and equity investors.