Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
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Long-term Activity Ratios (Summary)
Intuitive Surgical Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term activity ratios reveals evolving trends in asset utilization between 2021 and 2025. Generally, the ratios indicate a decreasing efficiency in generating revenue from fixed assets, followed by a slight stabilization in the most recent year. Total and equity turnover ratios show more moderate fluctuations.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a consistent decline from 3.04 in 2021 to 1.80 in 2024. This suggests a decreasing ability to generate sales revenue from the company’s net fixed assets over this period. However, a modest increase to 1.88 is observed in 2025, potentially indicating a stabilization of fixed asset utilization.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- A similar pattern is observed when including operating lease right-of-use assets in the calculation. The ratio decreases from 2.93 in 2021 to 1.75 in 2024, mirroring the trend in the standard net fixed asset turnover. The 2025 value of 1.83 also shows a slight improvement, consistent with the trend observed in the standard net fixed asset turnover ratio. This suggests that the inclusion of operating lease assets does not fundamentally alter the overall trend in fixed asset utilization.
- Total Asset Turnover
- The total asset turnover ratio exhibits less pronounced fluctuations. It increases from 0.42 in 2021 to 0.48 in 2022, then declines to 0.45 in 2024 before rising again to 0.49 in 2025. This indicates a relatively stable, though slightly improving, ability to generate sales from all assets. The fluctuations are less dramatic than those seen in the fixed asset turnover ratios.
- Equity Turnover
- The equity turnover ratio shows a similar pattern to the total asset turnover, increasing from 0.48 in 2021 to 0.56 in 2022, decreasing to 0.51 in 2024, and then increasing to 0.56 in 2025. This suggests a relatively stable relationship between revenue and equity financing, with a slight upward trend overall.
In summary, the company experienced a decline in its ability to generate revenue from net fixed assets between 2021 and 2024, with a potential stabilization in 2025. Total and equity turnover ratios remained relatively stable with minor fluctuations over the same period.
Net Fixed Asset Turnover
Intuitive Surgical Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property, plant, and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant, and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a declining trend over the observed period, followed by a slight stabilization. Revenue consistently increased year-over-year, while property, plant, and equipment, net, also increased, but at a rate that resulted in decreasing efficiency in revenue generation from fixed assets.
- Net Fixed Asset Turnover Trend
- The ratio decreased from 3.04 in 2021 to 1.80 in 2024, indicating a progressively less efficient utilization of fixed assets to generate revenue. This suggests the company was requiring a larger investment in fixed assets to achieve each dollar of revenue. The decrease from 2022 to 2023 was particularly pronounced, falling from 2.62 to 2.01.
- In 2025, the ratio experienced a modest increase to 1.88. While this halts the continuous decline, it does not represent a return to the levels observed in earlier years. This stabilization may indicate that the rate of increase in fixed assets is beginning to align more closely with revenue growth.
The increasing investment in property, plant, and equipment, net, coupled with the declining turnover ratio, suggests potential factors such as capacity expansion, modernization of existing assets, or inefficiencies in asset utilization. Further investigation would be required to determine the specific drivers behind these trends.
- Revenue Growth vs. Fixed Asset Growth
- Revenue increased consistently throughout the period, with the largest year-over-year increase occurring between 2023 and 2024 (16.3%). However, the growth in property, plant, and equipment, net, outpaced revenue growth in several years, particularly between 2022 and 2023, contributing to the declining turnover ratio.
The slight recovery in the net fixed asset turnover ratio in 2025 warrants continued monitoring to determine if it represents a sustainable trend or a temporary fluctuation.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Intuitive Surgical Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property, plant, and equipment, net | ||||||
| Operating lease right-of-use assets (reported as Intangible and other assets, net) | ||||||
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a declining trend in net fixed asset turnover over the observed period, followed by a slight stabilization. Revenue consistently increased year-over-year, while the value of property, plant, and equipment, net of accumulated depreciation and including operating lease right-of-use assets, also increased, but at a faster rate initially. This combination drove the observed changes in the turnover ratio.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 2.93 in 2021 to 1.75 in 2024. This indicates a diminishing ability to generate revenue from its fixed assets. The largest decline occurred between 2022 and 2023, falling from 2.53 to 1.97. While the ratio continued to decrease in 2024, the rate of decline slowed. A marginal increase to 1.83 was observed in 2025, suggesting a potential stabilization, though still significantly lower than the 2021 level.
The increasing investment in property, plant, and equipment, including operating leases, did not translate into a proportional increase in revenue during the period 2021-2024. This could be due to several factors, including the time lag between asset acquisition and full operational utilization, or potentially, inefficiencies in asset utilization. The slight improvement in the ratio in 2025 warrants further investigation to determine if this represents a genuine shift in trend or a temporary fluctuation.
- Revenue Trend
- Revenue demonstrated consistent growth throughout the period, increasing from US$5,710.1 million in 2021 to US$10,064.7 million in 2025. This positive revenue trajectory contrasts with the declining net fixed asset turnover, highlighting the increasing capital intensity of revenue generation.
- Fixed Asset Investment
- Property, plant, and equipment, net, increased substantially from US$1,950.8 million in 2021 to US$5,493.2 million in 2025. The most significant increase occurred between 2022 and 2023, rising from US$2,456.4 million to US$3,616.9 million. This substantial investment suggests a strategic focus on expanding capacity or upgrading existing assets, but the declining turnover ratio indicates that these investments have not yet yielded proportional revenue gains.
Total Asset Turnover
Intuitive Surgical Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a fluctuating pattern over the five-year period. While generally remaining within a narrow range, observable shifts indicate changes in the efficiency with which assets are utilized to generate revenue.
- Overall Trend
- The ratio increased from 0.42 in 2021 to 0.48 in 2022, suggesting improved asset utilization. This was followed by a slight decrease to 0.46 in 2023 and a further decline to 0.45 in 2024. However, the ratio rebounded to 0.49 in 2025, reaching its highest point in the observed period.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2021 and 2022, with a change of 0.06. The subsequent decrease from 2022 to 2023 was less pronounced, at 0.02. The decline from 2023 to 2024 was also 0.01. The most recent year, 2025, saw an increase of 0.04, indicating a renewed improvement in asset efficiency.
- Relationship to Revenue and Assets
- Revenue consistently increased throughout the period, rising from US$5,710.1 million in 2021 to US$10,064.7 million in 2025. Total assets also increased, but not at the same rate as revenue, particularly between 2021 and 2023. The fluctuations in the total asset turnover ratio reflect the interplay between these two factors. The 2025 increase suggests that revenue growth outpaced asset growth, leading to a more efficient use of assets.
In conclusion, the total asset turnover ratio demonstrates a generally stable, yet dynamic, relationship with revenue and asset levels. The recent increase in 2025 is a positive indicator, suggesting improved operational efficiency. Continued monitoring of this ratio is recommended to assess the long-term sustainability of asset utilization.
Equity Turnover
Intuitive Surgical Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total Intuitive Surgical, Inc. stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Revenue ÷ Total Intuitive Surgical, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a fluctuating, yet generally stable, pattern. Revenue consistently increased year-over-year, while stockholders’ equity experienced both increases and a decrease, influencing the overall equity turnover.
- Equity Turnover Trend
- The equity turnover ratio began at 0.48 in 2021, increasing to 0.56 in 2022. A slight decrease to 0.54 was observed in 2023, followed by another decrease to 0.51 in 2024. The ratio then rebounded to 0.56 in 2025, reaching the same level as in 2022.
- Revenue Impact
- Revenue exhibited consistent growth throughout the period, rising from US$5,710.1 million in 2021 to US$10,064.7 million in 2025. This continuous revenue increase generally supports a higher equity turnover, all else being equal.
- Stockholders’ Equity Impact
- Total stockholders’ equity decreased from US$11,901.1 million in 2021 to US$11,041.9 million in 2022. However, it subsequently increased to US$13,307.6 million in 2023, US$16,433.7 million in 2024, and US$17,824.0 million in 2025. The decrease in equity in 2022 likely contributed to the increase in equity turnover observed that year, while subsequent increases in equity partially offset the effect of rising revenue in later years.
The fluctuations in equity turnover suggest a dynamic relationship between revenue generation and the company’s equity base. While revenue growth consistently propelled the ratio upward, changes in stockholders’ equity moderated the overall trend. The final value in 2025 indicates a return to the efficiency level observed in 2022, despite significantly higher revenue.