Intuitive Surgical Inc. (NASDAQ:ISRG)

The composition of goodwill and intangible assets exhibits notable shifts over the five-year period. Goodwill represents the largest component, while definite-lived intangible assets, net of accumulated amortization, demonstrate a consistent decline.

Goodwill

Goodwill remained relatively stable between 2021 and 2023, fluctuating around US$348,000 thousand. A decrease was observed in 2024 to US$347,500 thousand, followed by an increase to US$370,300 thousand in 2025. This suggests potential acquisitions or adjustments impacting goodwill in the latter year.

Patents and Developed Technology

The value assigned to patents and developed technology decreased from US$219,300 thousand in 2021 to US$199,100 thousand in 2022. It experienced a slight recovery to US$206,300 thousand in 2023, before declining again to US$203,300 thousand in 2024 and further to US$192,800 thousand in 2025. This indicates a potential write-down or amortization exceeding new development costs.

Customer Relationships

Customer relationships remained relatively consistent between 2021 and 2023, around US$32,000 thousand. A notable decrease occurred in 2024, falling to US$27,300 thousand, with a slight recovery to US$28,200 thousand in 2025. This could reflect changes in customer retention rates or valuation methodologies.

Distribution Rights and Others

A significant reduction in the value of distribution rights and other intangible assets is apparent. The value decreased substantially from US$26,300 thousand in 2021 to US$11,000 thousand in 2022, and continued to decline to US$10,800 thousand in 2023, before plummeting to US$1,200 thousand in 2024. No value is reported for 2025, suggesting these assets have been fully amortized or written off.

Definite-Lived Intangible Assets

The gross carrying amount of definite-lived intangible assets decreased from US$277,400 thousand in 2021 to US$221,000 thousand in 2025. Simultaneously, accumulated amortization increased from -US$206,900 thousand to -US$209,900 thousand. Consequently, the net carrying amount of definite-lived intangible assets experienced a substantial decline, decreasing from US$70,500 thousand in 2021 to US$11,100 thousand in 2025. This demonstrates a consistent erosion of the value of these assets through amortization.

In-process R&D

In-process research and development was not reported for the first four years of the period. A value of US$6,000 thousand was reported in 2025, indicating new investment in ongoing research projects.

Total Intangible Assets

Total intangible assets decreased from US$70,500 thousand in 2021 to US$17,100 thousand in 2025, mirroring the decline in net definite-lived intangible assets.

Goodwill and Intangible Assets Combined

The combined value of goodwill and intangible assets decreased from US$414,100 thousand in 2021 to US$387,800 thousand in 2023, before increasing to US$387,400 thousand in 2025. The increase in 2025 is primarily driven by the increase in goodwill.

Overall, the trend indicates a consistent reduction in the value of definite-lived intangible assets, primarily through amortization, while goodwill has remained relatively stable with a recent increase. The emergence of in-process R&D in 2025 suggests a potential shift in investment strategy.

The information presents a five-year trend of reported and adjusted total assets and total stockholders’ equity. The adjustments consistently result in lower values for both metrics, indicating a reduction related to the removal of goodwill and associated intangible assets. A consistent pattern emerges where the difference between reported and adjusted figures remains relatively stable over the period.

Total Assets Trend

Reported total assets demonstrate an increasing trend over the five-year period, rising from US$13,555,000 thousand in 2021 to US$20,458,700 thousand in 2025. The adjusted total assets also exhibit an increasing trend, though at a slightly lower magnitude, moving from US$13,211,400 thousand to US$20,088,400 thousand over the same timeframe. The difference between reported and adjusted total assets remains approximately US$343,600 thousand throughout the period.

Stockholders’ Equity Trend

Reported total stockholders’ equity also shows an upward trajectory, increasing from US$11,901,100 thousand in 2021 to US$17,824,000 thousand in 2025. Similarly, adjusted total stockholders’ equity increases, from US$11,557,500 thousand to US$17,453,700 thousand. The difference between reported and adjusted stockholders’ equity is consistently around US$343,600 thousand across all years presented.

Adjustment Impact

The adjustments applied to both total assets and total stockholders’ equity are identical in magnitude each year. This suggests a systematic removal of the same amount of goodwill and related intangible assets annually. The consistent reduction implies a deliberate accounting treatment, potentially related to impairment or amortization of these assets. The impact of these adjustments does not materially alter the overall growth trends observed in the reported figures.

In summary, the company demonstrates growth in both reported and adjusted total assets and stockholders’ equity. The consistent adjustments suggest a regular, quantifiable impact from the removal of goodwill and intangible assets, which does not fundamentally change the observed growth patterns.

The financial metrics demonstrate a subtle impact from adjusting for goodwill and intangible assets. Generally, the adjusted ratios exhibit similar trends to their reported counterparts, but with slight variations in magnitude. These adjustments appear to modestly influence profitability and efficiency measures.

Total Asset Turnover

Reported total asset turnover fluctuated between 0.42 and 0.49 over the five-year period, showing a slight upward trend overall. The adjusted total asset turnover mirrored this pattern, consistently remaining marginally higher than the reported value, ranging from 0.43 to 0.50. This suggests that excluding goodwill and intangibles results in a slightly improved efficiency in utilizing assets to generate revenue.

Financial Leverage

Reported financial leverage remained relatively stable, oscillating between 1.14 and 1.18. The adjusted financial leverage exhibited a nearly identical trend, with values ranging from 1.14 to 1.18. The adjustments for goodwill and intangibles had a negligible effect on the company’s leverage position.

Return on Equity (ROE)

Reported ROE experienced volatility, decreasing from 14.32% in 2021 to 11.98% in 2022, then increasing to 16.02% in 2025. The adjusted ROE followed a similar trajectory, consistently exceeding the reported ROE by a small margin, ranging from 12.37% to 16.36%. The adjustments indicate a slightly higher return to equity holders when goodwill and intangibles are excluded from the calculation.

Return on Assets (ROA)

Reported ROA showed a similar pattern to ROE, declining from 12.58% to 10.19% before rising to 13.96%. The adjusted ROA consistently presented a slightly elevated value compared to the reported ROA, ranging from 10.47% to 14.22%. This indicates a marginally improved profitability from assets when goodwill and intangibles are not considered.

In summary, the adjustments for goodwill and intangible assets resulted in modestly higher values for asset turnover, ROE, and ROA. Financial leverage remained largely unaffected. The trends observed in the adjusted ratios closely mirrored those of the reported ratios, suggesting that the presence of goodwill and intangibles does not fundamentally alter the overall financial performance picture, but does have a quantifiable, albeit small, impact on these key metrics.

The analysis reveals trends in total asset values and associated turnover ratios over a five-year period. Reported total assets experienced a decrease between 2021 and 2022, followed by consistent increases through 2025. Adjusted total assets mirrored this pattern, exhibiting a similar decrease initially and subsequent growth. Both reported and adjusted total asset turnover ratios demonstrate relative stability with minor fluctuations throughout the period.

Adjusted Total Assets

Adjusted total assets began at US$13,211.4 million in 2021, decreased to US$12,625.5 million in 2022, and then increased steadily to US$20,088.4 million by 2025. The largest year-over-year increase occurred between 2023 and 2024, with an addition of US$347,500 thousand. This suggests a growing investment in assets, potentially related to expansion or strategic acquisitions, after an initial period of consolidation.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio showed a slight increase from 0.43 in 2021 to 0.49 in 2022. It then decreased to 0.47 in 2023 and remained at 0.45 in 2024 before rising again to 0.50 in 2025. This indicates a generally consistent ability to generate revenue relative to its adjusted asset base. The peak in 2022 and 2025 suggests periods of efficient asset utilization, while the dip in 2023 and 2024 may reflect slower revenue growth or increased investment in assets that had not yet fully translated into sales.

The difference between reported and adjusted total assets, while present, remains relatively consistent across the observed period. The adjusted total asset turnover ratio consistently remains slightly higher than the reported total asset turnover ratio, indicating that the adjustments made to total assets result in a marginally more favorable efficiency metric. Overall, the company demonstrates a stable, albeit modestly fluctuating, asset turnover profile alongside a clear trend of asset growth.

An examination of the financial information reveals trends in total assets, stockholders’ equity, and associated leverage ratios over a five-year period. Both reported and adjusted total assets demonstrate an overall upward trajectory, increasing from approximately US$13.56 billion in 2021 to US$20.46 billion in 2025. A similar pattern is observed in total stockholders’ equity, rising from US$11.90 billion to US$17.82 billion during the same timeframe.

Total Assets

Reported total assets decreased slightly between 2021 and 2022, falling from US$13,555,000 to US$12,974,000. However, assets then increased consistently through 2025, with the largest year-over-year increase occurring between 2023 and 2024 (US$3.29 billion). Adjusted total assets follow a similar pattern, though the magnitude of the decrease in 2022 is also slightly smaller.

Stockholders’ Equity

Reported stockholders’ equity experienced a decrease from 2021 to 2022, declining from US$11,901,100 to US$11,041,900. Subsequent years show consistent growth, culminating in US$17,824,000 in 2025. The adjusted stockholders’ equity mirrors this trend, with a comparable decrease in 2022 and consistent growth thereafter.

Financial Leverage

Reported financial leverage remained relatively stable throughout the period, fluctuating between 1.14 and 1.17. Adjusted financial leverage exhibits a similar pattern, also remaining within the 1.14 to 1.18 range. A slight increase in adjusted financial leverage is observed between 2021 and 2022 (from 1.14 to 1.18), but it returns to 1.14 in 2024 and remains at 1.15 in 2025. The consistency in both reported and adjusted leverage suggests a stable capital structure over the analyzed period.

The difference between reported and adjusted figures for both total assets and stockholders’ equity remains consistent across all years. This suggests a systematic adjustment is being applied, potentially related to the treatment of goodwill or intangible assets. The stability of the adjusted financial leverage ratio, despite fluctuations in the underlying asset and equity values, indicates that the adjustments are not significantly altering the overall assessment of the company’s financial risk.

Analysis of the presented financial information reveals trends in stockholders’ equity and associated returns on equity over a five-year period. Both reported and adjusted stockholders’ equity demonstrate a general upward trajectory, though with some fluctuation. Correspondingly, both reported and adjusted return on equity (ROE) exhibit an increasing trend over the observed timeframe.

Stockholders’ Equity

Reported total stockholders’ equity decreased from 2021 to 2022, declining from US$11,901,100 thousand to US$11,041,900 thousand. A subsequent increase is observed through 2025, reaching US$17,824,000 thousand. Adjusted total stockholders’ equity mirrors this pattern, with a similar decrease in 2022 and consistent growth thereafter, culminating in US$17,453,700 thousand in 2025.

Reported Return on Equity

Reported ROE experienced a decrease from 14.32% in 2021 to 11.98% in 2022, aligning with the decline in reported stockholders’ equity. From 2022 onward, reported ROE shows a consistent upward trend, increasing to 13.51% in 2023, 14.13% in 2024, and reaching 16.02% in 2025. This suggests improving profitability relative to the reported equity base.

Adjusted Return on Equity

Adjusted ROE follows a similar pattern to the reported ROE, decreasing from 14.75% in 2021 to 12.37% in 2022. The adjusted ROE also demonstrates consistent growth from 2022 to 2025, reaching 13.87% in 2023, 14.44% in 2024, and 16.36% in 2025. The adjusted ROE consistently exceeds the reported ROE throughout the period, indicating that the adjustments made to stockholders’ equity result in a higher calculated return.

The difference between reported and adjusted ROE remains relatively stable across the period, suggesting a consistent impact from the equity adjustments. The overall trend indicates strengthening financial performance as evidenced by the increasing ROE figures, coupled with growth in stockholders’ equity.

The reported and adjusted total assets exhibited a fluctuating pattern over the five-year period. Reported total assets decreased from 2021 to 2022, then increased consistently through 2025. Adjusted total assets mirrored this trend, though the magnitude of the decrease in 2022 and subsequent increases differed slightly. Both reported and adjusted return on assets (ROA) demonstrated an overall upward trend, despite some intermediate fluctuations.

Total Assets

Reported total assets experienced a decrease of approximately 4.3% between 2021 and 2022, followed by increases of 18.9%, 20.7%, and 9.1% in subsequent years. Adjusted total assets showed a similar pattern, with a 2.6% decrease between 2021 and 2022, and increases of 19.5%, 21.9%, and 8.3% in the following years. The difference between reported and adjusted total assets remained relatively consistent throughout the period.

Reported Return on Assets (ROA)

Reported ROA decreased from 12.58% in 2021 to 10.19% in 2022. It then increased to 11.64% in 2023, 12.39% in 2024, and reached 13.96% in 2025. This indicates improving profitability relative to the reported asset base over the latter part of the period.

Adjusted Return on Assets (ROA)

Adjusted ROA followed a similar trajectory to the reported ROA, declining from 12.90% in 2021 to 10.47% in 2022. Subsequent increases were observed, reaching 11.91% in 2023, 12.63% in 2024, and peaking at 14.22% in 2025. The adjusted ROA consistently exceeded the reported ROA across all observed years, suggesting that adjustments to total assets positively impacted profitability metrics.

The consistent increase in both reported and adjusted ROA from 2022 through 2025 suggests improving operational efficiency or asset utilization. The difference between the reported and adjusted ROA highlights the impact of the adjustments made to total assets, indicating that these adjustments provide a potentially more accurate representation of the asset base when evaluating profitability.