Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Abiomed Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Goodwill	76,786)	78,568)	31,969)	32,601)	35,808)	31,045)
Developed technology	27,000)	27,000)	—)	—)	—)	—)
Finite-lived intangible assets, cost	27,000)	27,000)	—)	—)	—)	—)
Accumulated amortization	(2,550)	(750)	—)	—)	—)	—)
Finite-lived intangible assets, net carrying value	24,450)	26,250)	—)	—)	—)	—)
In-process research and development	15,068)	15,900)	14,913)	15,208)	16,705)	14,482)
Indefinite-lived intangible assets	15,068)	15,900)	14,913)	15,208)	16,705)	14,482)
Other intangible assets, net	39,518)	42,150)	14,913)	15,208)	16,705)	14,482)
Goodwill and other intangible assets, net	116,304)	120,718)	46,882)	47,809)	52,513)	45,527)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Abiomed Inc. goodwill increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Abiomed Inc. other intangible assets, net increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Goodwill and other intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Abiomed Inc. goodwill and other intangible assets, net increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Abiomed Inc., adjustments to financial statements

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Adjustment to Total Assets
Total assets (as reported)	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Less: Goodwill	76,786)	78,568)	31,969)	32,601)	35,808)	31,045)
Total assets (adjusted)	1,596,607)	1,415,791)	1,184,493)	1,021,745)	750,567)	519,369)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Less: Goodwill	76,786)	78,568)	31,969)	32,601)	35,808)	31,045)
Stockholders’ equity (adjusted)	1,426,540)	1,251,107)	1,033,497)	904,289)	653,716)	421,026)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Abiomed Inc., Financial Data: Reported vs. Adjusted

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Abiomed Inc., adjusted financial ratios

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Total Asset Turnover
Reported total asset turnover	0.62	0.57	0.69	0.73	0.76	0.81
Adjusted total asset turnover	0.65	0.60	0.71	0.75	0.79	0.86
Financial Leverage
Reported financial leverage	1.11	1.12	1.14	1.13	1.14	1.22
Adjusted financial leverage	1.12	1.13	1.15	1.13	1.15	1.23
Return on Equity (ROE)
Reported ROE	9.08%	16.96%	19.05%	27.65%	16.27%	11.53%
Adjusted ROE	9.57%	18.03%	19.64%	28.64%	17.16%	12.38%
Return on Assets (ROA)
Reported ROA	8.16%	15.09%	16.69%	24.57%	14.26%	9.47%
Adjusted ROA	8.55%	15.93%	17.14%	25.35%	14.94%	10.03%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abiomed Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abiomed Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Abiomed Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Abiomed Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc., Financial Ratios: Reported vs. Adjusted

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	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Activity Ratio
Total asset turnover¹	0.62	0.57	0.69	0.73	0.76	0.81
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Adjusted total assets	1,596,607)	1,415,791)	1,184,493)	1,021,745)	750,567)	519,369)
Activity Ratio
Adjusted total asset turnover²	0.65	0.60	0.71	0.75	0.79	0.86

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 1,031,753 ÷ 1,673,393 = 0.62

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 1,031,753 ÷ 1,596,607 = 0.65

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abiomed Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Stockholders’ equity	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Solvency Ratio
Financial leverage¹	1.11	1.12	1.14	1.13	1.14	1.22
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	1,596,607)	1,415,791)	1,184,493)	1,021,745)	750,567)	519,369)
Adjusted stockholders’ equity	1,426,540)	1,251,107)	1,033,497)	904,289)	653,716)	421,026)
Solvency Ratio
Adjusted financial leverage²	1.12	1.13	1.15	1.13	1.15	1.23

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 1,673,393 ÷ 1,503,326 = 1.11

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 1,596,607 ÷ 1,426,540 = 1.12

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abiomed Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Stockholders’ equity	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Profitability Ratio
ROE¹	9.08%	16.96%	19.05%	27.65%	16.27%	11.53%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Adjusted stockholders’ equity	1,426,540)	1,251,107)	1,033,497)	904,289)	653,716)	421,026)
Profitability Ratio
Adjusted ROE²	9.57%	18.03%	19.64%	28.64%	17.16%	12.38%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 136,505 ÷ 1,503,326 = 9.08%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 136,505 ÷ 1,426,540 = 9.57%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Abiomed Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Profitability Ratio
ROA¹	8.16%	15.09%	16.69%	24.57%	14.26%	9.47%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Adjusted total assets	1,596,607)	1,415,791)	1,184,493)	1,021,745)	750,567)	519,369)
Profitability Ratio
Adjusted ROA²	8.55%	15.93%	17.14%	25.35%	14.94%	10.03%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 136,505 ÷ 1,673,393 = 8.16%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 136,505 ÷ 1,596,607 = 8.55%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Abiomed Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc. (NASDAQ:ABMD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Abiomed Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Abiomed Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)