Intuitive Surgical Inc (ISRG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.10% | 64.08% | 66.30% | 62.94% | 67.85% |
| Operating profit margin | 23.20% | 24.08% | 30.50% | 23.09% | 29.99% |
| Pretax margin | 25.47% | 24.20% | 31.27% | 26.41% | 32.72% |
| Net profit margin | 23.61% | 20.19% | 28.55% | 23.33% | 30.09% |
Intuitive Surgical Inc's profitability ratios show varying trends over the past five years.
1. Gross Profit Margin: The company's gross profit margin has fluctuated within a narrow range, indicating consistent control over production costs and a stable pricing strategy. It decreased slightly in 2023 compared to the previous years.
2. Operating Profit Margin: Intuitive Surgical Inc's operating profit margin has also shown some fluctuations, with a noticeable decrease in 2023 compared to the previous years. This may suggest that the company's operating expenses have increased relative to its operating revenue.
3. Pre-tax Margin: The pretax margin has also varied over the years, with a slight increase in 2023. This ratio reflects the company's ability to generate profits before accounting for taxes and indicates its operational efficiency.
4. Net Profit Margin: The net profit margin, which represents the company's bottom line profitability after all expenses, also shows variability. The ratio increased significantly in 2023 compared to 2022, which could be a positive sign of improved efficiency in managing non-operating expenses.
In conclusion, Intuitive Surgical Inc's profitability ratios demonstrate a mixed performance, with some ratios showing stability while others exhibit fluctuations. Further analysis of the underlying reasons for these changes would be necessary to provide a more comprehensive understanding of the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.44% | 12.16% | 13.43% | 9.40% | 14.12% |
| Return on assets (ROA) | 11.64% | 10.19% | 12.58% | 9.50% | 14.17% |
| Return on total capital | 13.28% | 14.28% | 15.30% | 10.79% | 16.63% |
| Return on equity (ROE) | 13.51% | 11.98% | 14.32% | 10.90% | 16.69% |
Intuitive Surgical Inc's profitability ratios demonstrate fluctuations but generally show a positive trend over the past five years. Operating return on assets (Operating ROA) decreased from 14.12% in 2019 to 11.44% in 2023. This suggests the company's ability to generate operating income from its assets has slightly declined.
Return on assets (ROA) peaked at 12.58% in 2021 but then decreased to 11.64% in 2023, indicating a recent decline in overall asset efficiency. Return on total capital decreased from 16.63% in 2019 to 13.28% in 2023, which suggests a decrease in overall profitability relative to the capital invested in the business.
Return on equity (ROE) also shows a fluctuating trend, with variations in profitability for shareholders. ROE decreased from 16.69% in 2019 to 13.51% in 2023, indicating a decreased return for equity investors.
Overall, while there have been fluctuations in profitability ratios over the years, Intuitive Surgical Inc's return on assets and return on equity have shown a general downward trend from 2019 to 2023, which may indicate a need for the company to focus on improving asset efficiency and profitability for shareholders.