Edwards Lifesciences Corp (EW)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,378,700 1,534,100 1,748,500 1,348,500 1,628,400
Total assets US$ in thousands 13,055,300 9,363,200 8,292,500 8,502,600 7,237,100
Operating ROA 10.56% 16.38% 21.09% 15.86% 22.50%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,378,700K ÷ $13,055,300K
= 10.56%

To analyze Edwards Lifesciences Corp's operating return on assets (operating ROA) based on the provided data, we observe the trend over the years:

1. December 31, 2020: Operating ROA was 22.50%.
2. December 31, 2021: Operating ROA decreased to 15.86%.
3. December 31, 2022: Operating ROA improved to 21.09%.
4. December 31, 2023: Operating ROA declined to 16.38%.
5. December 31, 2024: Operating ROA further decreased to 10.56%.

The operating ROA reflects the efficiency of the company in generating profits from its operational assets. The gradual decrease in the operating ROA from 2020 to 2024 suggests a mixed performance. Although there was an initial strong performance in 2020, the subsequent years witnessed fluctuations and a downward trend in the percentage return on assets.

It is crucial for Edwards Lifesciences Corp to closely monitor this trend and identify the underlying factors affecting the operating ROA. Management should assess operational efficiency, asset utilization, and profitability to optimize the return on assets and drive sustained financial performance.