Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 18,743,200 15,441,500 12,974,000 13,555,000 11,168,900
Adjustment to Total Debt
Total debt (as reported) — — — — —
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Operating lease liabilities (reported as Other accrued liabilities) 33,500 25,300 24,200 20,400 21,900
Add: Operating lease liabilities (reported as Other long-term liabilities) 112,500 64,500 69,600 66,600 58,000
Total debt (adjusted) 146,000 89,800 93,800 87,000 79,900

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).

1, 2 Equal to total present value of future operating lease payments.

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

Adjusted Financial Ratios for Operating Leases (Summary)

Intuitive Surgical Inc., adjusted financial ratios

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.45 0.46 0.48 0.42 0.39
Adjusted total asset turnover 0.45 0.46 0.48 0.42 0.39
Debt to Equity2
Reported debt to equity 0.00 0.00 0.00 0.00 0.00
Adjusted debt to equity 0.01 0.01 0.01 0.01 0.01
Return on Assets3 (ROA)
Reported ROA 12.39% 11.64% 10.19% 12.58% 9.50%
Adjusted ROA 12.39% 11.64% 10.19% 12.58% 9.50%

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).

1 See details »

2 See details »

3 See details »

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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Intuitive Surgical Inc. adjusted debt to equity ratio improved from 2022 to 2023 but then deteriorated significantly 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

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 Operating Leases
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 18,743,200 15,441,500 12,974,000 13,555,000 11,168,900
Activity Ratio
Adjusted total asset turnover2 0.45 0.46 0.48 0.42 0.39

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 ÷ 18,743,200 = 0.45

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 Debt to Equity

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 debt — — — — —
Total Intuitive Surgical, Inc. stockholders’ equity 16,433,700 13,307,600 11,041,900 11,901,100 9,731,500
Solvency Ratio
Debt to equity1 0.00 0.00 0.00 0.00 0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 146,000 89,800 93,800 87,000 79,900
Total Intuitive Surgical, Inc. stockholders’ equity 16,433,700 13,307,600 11,041,900 11,901,100 9,731,500
Solvency Ratio
Adjusted debt to equity2 0.01 0.01 0.01 0.01 0.01

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 Debt to equity = Total debt ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 0 ÷ 16,433,700 = 0.00

2 Adjusted debt to equity = Adjusted total debt ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 146,000 ÷ 16,433,700 = 0.01

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Intuitive Surgical Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly 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 Operating Leases
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 18,743,200 15,441,500 12,974,000 13,555,000 11,168,900
Profitability Ratio
Adjusted ROA2 12.39% 11.64% 10.19% 12.58% 9.50%

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 ÷ 18,743,200 = 12.39%

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.