Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Operating Leases

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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

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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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
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) 25,300 24,200 20,400 21,900 7,700
Add: Operating lease liabilities (reported as Other long-term liabilities) 64,500 69,600 66,600 58,000 68,700
Total debt (adjusted) 89,800 93,800 87,000 79,900 76,400

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).

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.46 0.48 0.42 0.39 0.46
Adjusted total asset turnover 0.46 0.48 0.42 0.39 0.46
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 11.64% 10.19% 12.58% 9.50% 14.17%
Adjusted ROA 11.64% 10.19% 12.58% 9.50% 14.17%

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).

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

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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 Operating Leases
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 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Activity Ratio
Adjusted total asset turnover2 0.46 0.48 0.42 0.39 0.46

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 ÷ 15,441,500 = 0.46

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 Debt to Equity

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total debt — — — — —
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
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 89,800 93,800 87,000 79,900 76,400
Total Intuitive Surgical, Inc. stockholders’ equity 13,307,600 11,041,900 11,901,100 9,731,500 8,263,800
Solvency Ratio
Adjusted debt to equity2 0.01 0.01 0.01 0.01 0.01

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 Debt to equity = Total debt ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 0 ÷ 13,307,600 = 0.00

2 Adjusted debt to equity = Adjusted total debt ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= 89,800 ÷ 13,307,600 = 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 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 Operating Leases
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 15,441,500 12,974,000 13,555,000 11,168,900 9,733,200
Profitability Ratio
Adjusted ROA2 11.64% 10.19% 12.58% 9.50% 14.17%

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 ÷ 15,441,500 = 11.64%

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.