Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Intuitive Surgical Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 321,900 315,200 350,400 158,800 34,200
State 47,900 32,800 49,200 17,300 21,500
Foreign 101,800 74,400 48,100 50,100 26,900
Current income tax expense 471,600 422,400 447,700 226,200 82,600
Federal (157,700) (122,400) (188,800) (21,400) 23,800
State (23,900) (25,100) (16,400) 500 1,600
Foreign 46,300 (133,300) 19,900 (43,100) 32,200
Deferred income tax expense (benefit) (135,300) (280,800) (185,300) (64,000) 57,600
Income tax expense 336,300 141,600 262,400 162,200 140,200

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).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Intuitive Surgical Inc. current income tax expense decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Intuitive Surgical Inc. deferred income tax expense (benefit) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intuitive Surgical Inc. income tax expense decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Effective Income Tax Rate (EITR)

Intuitive Surgical Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 12.58% 7.23% 16.33% 8.58% 11.62%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intuitive Surgical Inc. effective income tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Components of Deferred Tax Assets and Liabilities

Intuitive Surgical Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Intangible assets 377,500 420,900 342,800 369,100 321,800
Capitalized research and development expenditures 468,600 306,400 172,500 4,800 —
Research and development credits 240,300 193,200 156,700 98,500 76,300
Share-based compensation expense 155,300 135,100 121,300 110,900 101,100
Swiss tax credits 107,400 122,400 — — —
Expenses deducted in later years for tax purposes 67,400 55,900 57,500 38,400 29,300
Lease liabilities 23,000 16,500 16,600 15,200 12,000
Net operating losses 4,500 2,800 6,400 9,700 27,700
Net unrealized losses on available-for-sale securities and other 11,300 9,200 45,500 5,300 —
Gross deferred tax assets 1,455,300 1,262,400 919,300 651,900 568,200
Valuation allowance (314,800) (269,800) (168,600) (104,600) (81,400)
Deferred tax assets 1,140,500 992,600 750,700 547,300 486,800
Property, plant, and equipment (65,700) (60,300) (64,100) (79,400) (91,100)
Right-of-use assets (18,900) (11,800) (11,800) (12,300) (8,400)
Intangible assets (8,500) (9,800) (9,300) (9,700) (10,100)
Other (2,300) (200) (1,000) (5,100) (13,200)
Deferred tax liabilities (95,400) (82,100) (86,200) (106,500) (122,800)
Net deferred tax assets (liabilities) 1,045,100 910,500 664,500 440,800 364,000

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).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intuitive Surgical Inc. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intuitive Surgical Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Intuitive Surgical Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Intuitive Surgical Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 1,045,100 910,500 664,600 441,400 367,700
Deferred tax liabilities — — 100 600 3,700

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Intuitive Surgical Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Adjustments to Financial Statements: Removal of Deferred Taxes

Intuitive Surgical Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
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: Noncurrent deferred tax assets, net 1,045,100 910,500 664,600 441,400 367,700
Total assets (adjusted) 17,698,100 14,531,000 12,309,400 13,113,600 10,801,200
Adjustment to Total Liabilities
Total liabilities (as reported) 2,213,600 2,044,200 1,861,400 1,603,500 1,409,800
Less: Noncurrent deferred tax liabilities, net — — 100 600 3,700
Total liabilities (adjusted) 2,213,600 2,044,200 1,861,300 1,602,900 1,406,100
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: Net deferred tax assets (liabilities) 1,045,100 910,500 664,500 440,800 364,000
Total Intuitive Surgical, Inc. stockholders’ equity (adjusted) 15,388,600 12,397,100 10,377,400 11,460,300 9,367,500
Adjustment to Net Income Attributable To Intuitive Surgical, Inc.
Net income attributable to Intuitive Surgical, Inc. (as reported) 2,322,600 1,798,000 1,322,300 1,704,600 1,060,600
Add: Deferred income tax expense (benefit) (135,300) (280,800) (185,300) (64,000) 57,600
Net income attributable to Intuitive Surgical, Inc. (adjusted) 2,187,300 1,517,200 1,137,000 1,640,600 1,118,200

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Intuitive Surgical Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 27.81% 25.24% 21.25% 29.85% 24.33%
Adjusted net profit margin 26.19% 21.30% 18.27% 28.73% 25.66%
Total Asset Turnover
Reported total asset turnover 0.45 0.46 0.48 0.42 0.39
Adjusted total asset turnover 0.47 0.49 0.51 0.44 0.40
Financial Leverage
Reported financial leverage 1.14 1.16 1.17 1.14 1.15
Adjusted financial leverage 1.15 1.17 1.19 1.14 1.15
Return on Equity (ROE)
Reported ROE 14.13% 13.51% 11.98% 14.32% 10.90%
Adjusted ROE 14.21% 12.24% 10.96% 14.32% 11.94%
Return on Assets (ROA)
Reported ROA 12.39% 11.64% 10.19% 12.58% 9.50%
Adjusted ROA 12.36% 10.44% 9.24% 12.51% 10.35%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intuitive Surgical Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
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 adjusted 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 adjusted 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

Adjusted Net Profit Margin

Microsoft Excel
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
Revenue 8,352,100 7,124,100 6,222,200 5,710,100 4,358,400
Profitability Ratio
Net profit margin1 27.81% 25.24% 21.25% 29.85% 24.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 2,187,300 1,517,200 1,137,000 1,640,600 1,118,200
Revenue 8,352,100 7,124,100 6,222,200 5,710,100 4,358,400
Profitability Ratio
Adjusted net profit margin2 26.19% 21.30% 18.27% 28.73% 25.66%

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 Net profit margin = 100 × Net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 2,322,600 ÷ 8,352,100 = 27.81%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Revenue
= 100 × 2,187,300 ÷ 8,352,100 = 26.19%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intuitive Surgical Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
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 Deferred Taxes
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 17,698,100 14,531,000 12,309,400 13,113,600 10,801,200
Activity Ratio
Adjusted total asset turnover2 0.47 0.49 0.51 0.44 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 ÷ 17,698,100 = 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 deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 17,698,100 14,531,000 12,309,400 13,113,600 10,801,200
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 15,388,600 12,397,100 10,377,400 11,460,300 9,367,500
Solvency Ratio
Adjusted financial leverage2 1.15 1.17 1.19 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
= 17,698,100 ÷ 15,388,600 = 1.15

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.

Adjusted Return on Equity (ROE)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 2,187,300 1,517,200 1,137,000 1,640,600 1,118,200
Adjusted total Intuitive Surgical, Inc. stockholders’ equity 15,388,600 12,397,100 10,377,400 11,460,300 9,367,500
Profitability Ratio
Adjusted ROE2 14.21% 12.24% 10.96% 14.32% 11.94%

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 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total Intuitive Surgical, Inc. stockholders’ equity
= 100 × 2,187,300 ÷ 15,388,600 = 14.21%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Intuitive Surgical, Inc. 2,187,300 1,517,200 1,137,000 1,640,600 1,118,200
Adjusted total assets 17,698,100 14,531,000 12,309,400 13,113,600 10,801,200
Profitability Ratio
Adjusted ROA2 12.36% 10.44% 9.24% 12.51% 10.35%

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 × Adjusted net income attributable to Intuitive Surgical, Inc. ÷ Adjusted total assets
= 100 × 2,187,300 ÷ 17,698,100 = 12.36%

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