Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

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

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 348,700 348,500 343,600 336,700 307,200
Patents and developed technology 206,300 199,100 219,300 198,400 186,700
Distribution rights and others 10,800 11,000 26,300 91,900 91,300
Customer relationships 32,500 32,600 31,800 59,000 57,700
Intangible assets, gross carrying amount 249,600 242,700 277,400 349,300 335,700
Accumulated amortization (210,500) (192,900) (206,900) (271,900) (223,600)
Intangible assets, net carrying amount 39,100 49,800 70,500 77,400 112,100
Goodwill and intangible assets 387,800 398,300 414,100 414,100 419,300

Based on: 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), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Intuitive Surgical Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Less: Goodwill 348,700 348,500 343,600 336,700 307,200
Total assets (adjusted) 15,092,800 12,625,500 13,211,400 10,832,200 9,426,000
Adjustment to Total Intuitive Surgical, Inc. Stockholders’ Equity
Total Intuitive Surgical, Inc. stockholders’ equity (as reported) 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Less: Goodwill 348,700 348,500 343,600 336,700 307,200
Total Intuitive Surgical, Inc. stockholders’ equity (adjusted) 12,958,900 10,693,400 11,557,500 9,394,800 7,956,600

Based on: 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), 10-K (reporting date: 2019-12-31).

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

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Intuitive Surgical Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.46 0.48 0.42 0.39 0.46
Adjusted total asset turnover 0.47 0.49 0.43 0.40 0.48
Financial Leverage
Reported financial leverage 1.16 1.17 1.14 1.15 1.18
Adjusted financial leverage 1.16 1.18 1.14 1.15 1.18
Return on Equity (ROE)
Reported ROE 13.51% 11.98% 14.32% 10.90% 16.69%
Adjusted ROE 13.87% 12.37% 14.75% 11.29% 17.34%
Return on Assets (ROA)
Reported ROA 11.64% 10.19% 12.58% 9.50% 14.17%
Adjusted ROA 11.91% 10.47% 12.90% 9.79% 14.63%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
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 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Intuitive Surgical Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Intuitive Surgical Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Activity Ratio
Total asset turnover1 0.46 0.48 0.42 0.39 0.46
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue 7,124,100 6,222,200 5,710,100 4,358,400 4,478,500
Adjusted total assets 15,092,800 12,625,500 13,211,400 10,832,200 9,426,000
Activity Ratio
Adjusted total asset turnover2 0.47 0.49 0.43 0.40 0.48

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 7,124,100 ÷ 15,441,500 = 0.46

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 7,124,100 ÷ 15,092,800 = 0.47

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Solvency Ratio
Financial leverage1 1.16 1.17 1.14 1.15 1.18
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 15,092,800 12,625,500 13,211,400 10,832,200 9,426,000
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 12,958,900 10,693,400 11,557,500 9,394,800 7,956,600
Solvency Ratio
Adjusted financial leverage2 1.16 1.18 1.14 1.15 1.18

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 15,441,500 ÷ 13,307,600 = 1.16

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 15,092,800 ÷ 12,958,900 = 1.16

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 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Profitability Ratio
ROE1 13.51% 11.98% 14.32% 10.90% 16.69%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 12,958,900 10,693,400 11,557,500 9,394,800 7,956,600
Profitability Ratio
Adjusted ROE2 13.87% 12.37% 14.75% 11.29% 17.34%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,798,000 ÷ 13,307,600 = 13.51%

2 Adjusted ROE = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 1,798,000 ÷ 12,958,900 = 13.87%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Intuitive Surgical Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Total assets 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Profitability Ratio
ROA1 11.64% 10.19% 12.58% 9.50% 14.17%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Intuitive Surgical, Inc. 1,798,000 1,322,300 1,704,600 1,060,600 1,379,300
Adjusted total assets 15,092,800 12,625,500 13,211,400 10,832,200 9,426,000
Profitability Ratio
Adjusted ROA2 11.91% 10.47% 12.90% 9.79% 14.63%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Total assets
= 100 × 1,798,000 ÷ 15,441,500 = 11.64%

2 Adjusted ROA = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total assets
= 100 × 1,798,000 ÷ 15,092,800 = 11.91%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Intuitive Surgical Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.