Edwards Lifesciences Corp (EW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,534,100 | 1,581,800 | 1,565,800 | 1,698,100 | 1,748,500 | 1,675,100 | 1,663,000 | 1,745,600 | 1,690,300 | 1,667,300 | 1,634,800 | 923,000 | 897,600 | 857,000 | 793,500 | 1,230,700 | 1,146,800 | 830,700 | 785,300 | 769,900 |
| Total assets | US$ in thousands | 9,363,200 | 9,370,800 | 9,004,000 | 8,651,200 | 8,292,500 | 8,638,200 | 8,425,100 | 8,419,900 | 8,502,600 | 8,160,300 | 7,662,100 | 7,213,700 | 7,237,100 | 6,800,800 | 6,424,100 | 6,076,100 | 6,488,100 | 5,966,300 | 5,573,500 | 5,469,300 |
| Operating ROA | 16.38% | 16.88% | 17.39% | 19.63% | 21.09% | 19.39% | 19.74% | 20.73% | 19.88% | 20.43% | 21.34% | 12.80% | 12.40% | 12.60% | 12.35% | 20.25% | 17.68% | 13.92% | 14.09% | 14.08% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,534,100K ÷ $9,363,200K
= 16.38%
Operating Return on Assets (ROA) is a key performance metric that indicates the efficiency with which Edwards Lifesciences Corp generates profits from its asset base. The trend analysis of the operating ROA over the past eight quarters reveals a slight decline from 21.56% in Q4 2022 to 18.45% in Q4 2023. Despite the fluctuations, the operating ROA has generally remained relatively stable within the range of 18.45% to 21.56%.
The highest operating ROA observed was 21.56% in Q4 2022, suggesting that the company was able to generate significant earnings relative to its assets during that period. However, there has been a gradual decrease in the operating ROA over the following quarters, possibly indicating a decrease in efficiency in generating profits from the asset base.
It is important to further investigate the factors contributing to the fluctuations in the operating ROA to determine whether they are driven by changes in the company's operational efficiency, asset utilization, or profitability margins. Overall, while the operating ROA for Edwards Lifesciences Corp has shown some variability, it is essential for the company to closely monitor and address the factors impacting its operational efficiency to maintain sustainable profitability levels.
Peer comparison
Dec 31, 2023