Edwards Lifesciences Corp (EW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 78.39% | 77.83% | 76.84% | 76.65% | 77.02% | 77.99% | 79.07% | 79.81% | 79.93% | 78.90% | 77.78% | 76.58% | 76.13% | 75.74% | 75.53% | 75.22% | 75.36% | 75.50% | 74.97% | 74.40% |
| Operating profit margin | 26.37% | 27.19% | 27.02% | 25.77% | 25.55% | 27.18% | 27.68% | 30.87% | 32.49% | 31.23% | 31.06% | 32.58% | 32.30% | 32.73% | 33.19% | 20.63% | 20.46% | 19.62% | 18.36% | 27.45% |
| Pretax margin | 27.76% | 27.59% | 27.62% | 26.19% | 26.61% | 28.11% | 28.35% | 31.45% | 32.84% | 31.40% | 31.15% | 32.64% | 32.53% | 33.01% | 33.61% | 21.04% | 20.90% | 20.05% | 18.82% | 27.95% |
| Net profit margin | 72.93% | 70.82% | 24.55% | 23.01% | 23.35% | 24.59% | 24.56% | 27.07% | 28.28% | 27.20% | 27.18% | 28.72% | 28.73% | 29.00% | 29.69% | 19.02% | 18.77% | 18.18% | 17.21% | 24.71% |
The profitability ratios of Edwards Lifesciences Corp have shown varying trends over the reported periods.
- Gross profit margin has exhibited a consistent upward trajectory from 74.40% in March 2020 to 78.39% in December 2024, indicating the company's ability to effectively manage production costs and generate profits from sales.
- Operating profit margin fluctuated over the years, peaking at 33.19% in June 2021 but gradually declining to 26.37% by December 2024. This suggests fluctuations in operational efficiency and cost management during the period.
- Pretax margin followed a similar pattern as operating margin, showing more volatility and ending at 27.76% in December 2024. The fluctuations may indicate changes in the company's income before accounting for taxes.
- Net profit margin, after experiencing a dip in March 2024, saw a significant increase to 72.93% by December 2024. This notable surge may be attributed to various factors, such as changes in taxation, extraordinary gains, or shifts in business strategies.
Overall, while the gross profit margin has been steadily improving, the operating, pretax, and net profit margins have shown more variability, suggesting potential challenges in cost management and profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.56% | 12.31% | 16.05% | 16.26% | 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% |
| Return on assets (ROA) | 31.98% | 32.06% | 14.59% | 14.52% | 14.98% | 15.27% | 15.43% | 17.21% | 18.35% | 16.89% | 17.27% | 18.27% | 17.68% | 18.10% | 19.09% | 11.80% | 11.38% | 11.68% | 11.58% | 18.23% |
| Return on total capital | 16.59% | 17.17% | 21.82% | 25.49% | 27.87% | 28.21% | 31.35% | 31.10% | 31.51% | 27.91% | 27.44% | 26.40% | 25.41% | 27.10% | 28.37% | 37.44% | 37.94% | 41.50% | 44.18% | 34.97% |
| Return on equity (ROE) | 41.75% | 43.57% | 19.81% | 19.86% | 21.09% | 21.49% | 21.79% | 24.90% | 26.21% | 23.46% | 24.49% | 26.32% | 25.76% | 26.66% | 28.49% | 18.27% | 18.00% | 18.86% | 19.37% | 28.40% |
Edwards Lifesciences Corp's profitability ratios demonstrate a stable performance over the reported periods.
1. Operating Return on Assets (Operating ROA) has been relatively strong, ranging from 12.31% to 21.34% during the period, indicating the company's ability to generate operating profits from its assets efficiently.
2. Return on Assets (ROA) also reflects a consistent performance, with figures ranging from 11.38% to 32.06%. This ratio indicates the company's ability to generate profits relative to its total assets.
3. Return on Total Capital has shown a declining trend from 44.18% in June 2020 to 16.59% in December 2024. Although there have been fluctuations, the company's return on total capital is generally healthy, reflecting the effectiveness of capital utilization.
4. Return on Equity (ROE) remained strong throughout the periods, with figures ranging from 18.00% to 43.57%. This ratio signifies the return earned on the shareholders' equity investment in the company.
Overall, Edwards Lifesciences Corp has maintained a solid profitability performance, showcasing efficient utilization of assets and capital to generate returns for both the company and its shareholders. However, it is essential to monitor the downward trend in some ratios to ensure sustained profitability in the future.
See also:
Edwards Lifesciences Corp Profitability Ratios (Quarterly Data)