Stock Analysis on Net

Boston Scientific Corp. (NYSE:BSX)

This company has been moved to the archive! The financial data has not been updated since May 4, 2023.

Financial Reporting Quality: Aggregate Accruals

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Boston Scientific Corp., balance sheet computation of aggregate accruals

US$ in millions

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets 32,469 32,229 30,777 30,565 20,999
Less: Cash and cash equivalents 928 1,925 1,734 217 146
Operating assets 31,541 30,304 29,043 30,348 20,853
Operating Liabilities
Total liabilities 14,896 15,608 15,451 16,688 12,273
Less: Current debt obligations 20 261 13 1,416 2,253
Less: Long-term debt 8,915 8,804 9,130 8,592 4,803
Operating liabilities 5,961 6,543 6,308 6,680 5,217
 
Net operating assets1 25,580 23,761 22,735 23,668 15,636
Balance-sheet-based aggregate accruals2 1,819 1,026 (933) 8,032
Financial Ratio
Balance-sheet-based accruals ratio3 7.37% 4.41% -4.02% 40.87%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -0.73% -1.76% -1.55%
Cigna Group -7.83% 4.17% -7.30%
CVS Health Corp. -9.86% -3.68% -0.89%
Elevance Health Inc. 0.32% 14.93% -15.16%
Humana Inc. -44.43% 111.97% 18.14%
Intuitive Surgical Inc. -10.21% 50.02% -8.55%
Medtronic PLC -1.37% 3.72% -1.48%
UnitedHealth Group Inc. 17.32% 4.32% 5.27%
Balance-Sheet-Based Accruals Ratio, Sector
Health Care Equipment & Services -1.21% 4.56% -1.66% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 2.87% 6.05% 10.43% 200.00%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= 31,5415,961 = 25,580

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 25,58023,761 = 1,819

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 1,819 ÷ [(25,580 + 23,761) ÷ 2] = 7.37%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Boston Scientific Corp. deteriorated earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Boston Scientific Corp., cash flow statement computation of aggregate accruals

US$ in millions

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income (loss) 698 1,041 (82) 4,700 1,671
Less: Cash provided by operating activities 1,526 1,870 1,508 1,836 310
Less: Cash used for investing activities (2,011) (1,597) (411) (5,041) (1,921)
Cash-flow-statement-based aggregate accruals 1,183 768 (1,179) 7,905 3,282
Financial Ratio
Cash-flow-statement-based accruals ratio1 4.80% 3.30% -5.08% 40.22%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -2.08% -3.29% -2.65%
Cigna Group -7.06% 2.43% -6.53%
CVS Health Corp. -6.15% -4.20% -2.54%
Elevance Health Inc. 8.35% 30.34% 4.96%
Humana Inc. -7.68% 91.38% 24.85%
Intuitive Surgical Inc. -20.88% 33.51% 10.64%
Medtronic PLC -0.97% 0.35% 1.16%
UnitedHealth Group Inc. 21.73% 5.77% 6.56%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Health Care Equipment & Services 1.95% 4.01% -0.04% 0.23%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 3.11% 7.13% 6.55% 3.35%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 1,183 ÷ [(25,580 + 23,761) ÷ 2] = 4.80%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Boston Scientific Corp. deteriorated earnings quality from 2021 to 2022.