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)

Intuitive Surgical Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Goodwill	347,500)	348,700)	348,500)	343,600)	336,700)
Patents and developed technology	203,300)	206,300)	199,100)	219,300)	198,400)
Customer relationships	27,300)	32,500)	32,600)	31,800)	59,000)
Distribution rights and others	1,200)	10,800)	11,000)	26,300)	91,900)
Intangible assets, gross carrying amount	231,800)	249,600)	242,700)	277,400)	349,300)
Accumulated amortization	(208,800)	(210,500)	(192,900)	(206,900)	(271,900)
Intangible assets, net carrying amount	23,000)	39,100)	49,800)	70,500)	77,400)
Goodwill and intangible assets	370,500)	387,800)	398,300)	414,100)	414,100)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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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.	Intuitive Surgical Inc. goodwill increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Intangible assets, net carrying amount	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Intuitive Surgical Inc. intangible assets, net carrying amount decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Intuitive Surgical Inc. goodwill and intangible assets decreased from 2022 to 2023 and from 2023 to 2024.

Intuitive Surgical Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	18,743,200)	15,441,500)	12,974,000)	13,555,000)	11,168,900)
Less: Goodwill	347,500)	348,700)	348,500)	343,600)	336,700)
Total assets (adjusted)	18,395,700)	15,092,800)	12,625,500)	13,211,400)	10,832,200)
Adjustment to Total Intuitive Surgical, Inc. Stockholders’ Equity
Total Intuitive Surgical, Inc. stockholders’ equity (as reported)	16,433,700)	13,307,600)	11,041,900)	11,901,100)	9,731,500)
Less: Goodwill	347,500)	348,700)	348,500)	343,600)	336,700)
Total Intuitive Surgical, Inc. stockholders’ equity (adjusted)	16,086,200)	12,958,900)	10,693,400)	11,557,500)	9,394,800)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Intuitive Surgical Inc., Financial Data: Reported vs. Adjusted

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Intuitive Surgical Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total Asset Turnover
Reported total asset turnover	0.45	0.46	0.48	0.42	0.39
Adjusted total asset turnover	0.45	0.47	0.49	0.43	0.40
Financial Leverage
Reported financial leverage	1.14	1.16	1.17	1.14	1.15
Adjusted financial leverage	1.14	1.16	1.18	1.14	1.15
Return on Equity (ROE)
Reported ROE	14.13%	13.51%	11.98%	14.32%	10.90%
Adjusted ROE	14.44%	13.87%	12.37%	14.75%	11.29%
Return on Assets (ROA)
Reported ROA	12.39%	11.64%	10.19%	12.58%	9.50%
Adjusted ROA	12.63%	11.91%	10.47%	12.90%	9.79%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Intuitive Surgical Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
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.	Intuitive Surgical Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Intuitive Surgical Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Intuitive Surgical Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Intuitive Surgical Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Revenue	8,352,100)	7,124,100)	6,222,200)	5,710,100)	4,358,400)
Total assets	18,743,200)	15,441,500)	12,974,000)	13,555,000)	11,168,900)
Activity Ratio
Total asset turnover¹	0.45	0.46	0.48	0.42	0.39
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	8,352,100)	7,124,100)	6,222,200)	5,710,100)	4,358,400)
Adjusted total assets	18,395,700)	15,092,800)	12,625,500)	13,211,400)	10,832,200)
Activity Ratio
Adjusted total asset turnover²	0.45	0.47	0.49	0.43	0.40

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 8,352,100 ÷ 18,743,200 = 0.45

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 8,352,100 ÷ 18,395,700 = 0.45

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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.	Intuitive Surgical Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total assets	18,743,200)	15,441,500)	12,974,000)	13,555,000)	11,168,900)
Total Intuitive Surgical, Inc. stockholders’ equity	16,433,700)	13,307,600)	11,041,900)	11,901,100)	9,731,500)
Solvency Ratio
Financial leverage¹	1.14	1.16	1.17	1.14	1.15
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	18,395,700)	15,092,800)	12,625,500)	13,211,400)	10,832,200)
Adjusted total Intuitive Surgical, Inc. stockholders’ equity	16,086,200)	12,958,900)	10,693,400)	11,557,500)	9,394,800)
Solvency Ratio
Adjusted financial leverage²	1.14	1.16	1.18	1.14	1.15

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 18,743,200 ÷ 16,433,700 = 1.14

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 18,395,700 ÷ 16,086,200 = 1.14

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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.	Intuitive Surgical Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc.	2,322,600)	1,798,000)	1,322,300)	1,704,600)	1,060,600)
Total Intuitive Surgical, Inc. stockholders’ equity	16,433,700)	13,307,600)	11,041,900)	11,901,100)	9,731,500)
Profitability Ratio
ROE¹	14.13%	13.51%	11.98%	14.32%	10.90%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc.	2,322,600)	1,798,000)	1,322,300)	1,704,600)	1,060,600)
Adjusted total Intuitive Surgical, Inc. stockholders’ equity	16,086,200)	12,958,900)	10,693,400)	11,557,500)	9,394,800)
Profitability Ratio
Adjusted ROE²	14.44%	13.87%	12.37%	14.75%	11.29%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 2,322,600 ÷ 16,433,700 = 14.13%

² Adjusted ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 2,322,600 ÷ 16,086,200 = 14.44%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Intuitive Surgical Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc.	2,322,600)	1,798,000)	1,322,300)	1,704,600)	1,060,600)
Total assets	18,743,200)	15,441,500)	12,974,000)	13,555,000)	11,168,900)
Profitability Ratio
ROA¹	12.39%	11.64%	10.19%	12.58%	9.50%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc.	2,322,600)	1,798,000)	1,322,300)	1,704,600)	1,060,600)
Adjusted total assets	18,395,700)	15,092,800)	12,625,500)	13,211,400)	10,832,200)
Profitability Ratio
Adjusted ROA²	12.63%	11.91%	10.47%	12.90%	9.79%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 2,322,600 ÷ 18,743,200 = 12.39%

² Adjusted ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total assets
= 100 × 2,322,600 ÷ 18,395,700 = 12.63%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Intuitive Surgical Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Intuitive Surgical Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Intuitive Surgical Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)