Analysis of Reportable Segments
Boston Scientific Corp. operates in 2 segments: MedSurg and Cardiovascular.
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Segment Profit Margin
Boston Scientific Corp., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular |
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).
The annual reportable segment profit margin data exhibits notable trends across the periods analyzed. For the MedSurg segment, data begins from December 31, 2019, with a profit margin of 30.07%. This margin increased to 33.02% by the end of 2020, indicating a positive growth trend. Subsequently, there was a slight decline to 32.13% in 2022, although the margin remained substantially higher than the initial recorded value.
Regarding the Cardiovascular segment, the profit margin was 17.64% at the close of 2019. This figure experienced a significant improvement, reaching 26.18% in 2020. However, a small reduction to 25.89% was observed in 2022, yet the margin remained well above the starting point, suggesting sustained profitability improvements despite the minor setback.
- MedSurg Segment Profit Margin
- Initial recorded margin of 30.07% in 2019
- Increase to 33.02% in 2020 indicating growth
- Moderate decline to 32.13% by 2022, maintaining a strong margin
- Cardiovascular Segment Profit Margin
- Started at 17.64% in 2019
- Sharp rise to 26.18% in 2020 showing considerable improvement
- Slight reduction to 25.89% in 2022, but remaining substantially higher than in 2019
Overall, both segments demonstrated clear improvements in profit margins initially, with some minor decreases observed in the latest available period. Despite the slight declines, the profit margins in 2022 remain significantly better than the initial values, indicating sustained enhanced profitability in these reportable segments over the analyzed period.
Segment Profit Margin: MedSurg
Boston Scientific Corp.; MedSurg; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
The financial data for the MedSurg segment over the three most recent years shows an overall positive trajectory in key performance indicators, indicating growth and improved profitability.
- Operating Income
- The operating income displayed a consistent upward trend from 2019 to 2022. Beginning at $1,156 million in 2019, it increased to $1,524 million in 2021 and further to $1,625 million in 2022, representing a substantial enhancement in operational profitability over this period.
- Net Sales
- Net sales also experienced robust growth, rising from $3,844 million in 2019 to $4,616 million in 2021 and then to $5,057 million in 2022. This steady increase suggests a strong market demand and effective revenue generation strategies within the segment.
- Segment Profit Margin
- The segment profit margin showed an improving trend initially, climbing from 30.07% in 2019 to 33.02% in 2021, followed by a slight decline to 32.13% in 2022. Despite the minor decrease in the final year, the margin remained above 30%, indicative of maintained profitability and efficient cost management relative to sales.
In summary, the MedSurg segment demonstrated consistent growth in both operating income and net sales over the reviewed timeframe, supported by a generally strong profit margin. These patterns reflect favorable operational performance and a solid market position within the reported periods.
Segment Profit Margin: Cardiovascular
Boston Scientific Corp.; Cardiovascular; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
The financial data for the cardiovascular segment reveals a clear upward trajectory in key performance indicators over the analyzed period, particularly from 2020 to 2022.
- Operating Income
- There is a substantial increase in operating income from 2020 to 2022. Starting at 1,043 million US dollars in 2020, operating income rose to 1,888 million in 2021, indicating a significant growth of approximately 81%. The upward trend continued into 2022, reaching 2,113 million US dollars, showing continued strong profitability within the segment.
- Net Sales
- Net sales have also demonstrated a consistent and robust growth pattern. From 5,913 million US dollars in 2020, sales increased to 7,212 million in 2021, an increase of approximately 22%. This positive momentum was sustained into 2022, with net sales reaching 8,161 million US dollars, reflecting an increase of about 13% compared to the previous year.
- Segment Profit Margin
- The segment profit margin exhibited notable improvement over the observed duration. In 2020, the margin was 17.64%, which rose sharply to 26.18% in 2021, pointing to improved efficiency and profitability. In 2022, the profit margin slightly decreased to 25.89%, yet it remained substantially higher than the 2020 level, indicating sustained high profitability within the segment.
Overall, the cardiovascular segment shows strong and consistent growth in sales and operating income, accompanied by a significant improvement in profit margins. These trends suggest enhanced operational efficiency and effective management contributing to improved financial performance over the reported years.
Segment Return on Assets (Segment ROA)
Boston Scientific Corp., ROA by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular |
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).
The analysis of the annual reportable segment Return on Assets (ROA) data reveals notable trends across the two segments, MedSurg and Cardiovascular, over the periods where data is available, specifically from 2020 to 2022.
- MedSurg Segment
- The MedSurg segment did not report ROA for 2018 and 2019, but from 2020 onwards, it exhibited strong performance. The ROA was 58.03% in 2020, which increased to 69.97% in 2021. This substantial improvement indicates enhanced asset efficiency and profitability during this period. However, in 2022, the ROA declined to 64.97%, signaling a decrease in returns relative to the prior year, yet it remained significantly higher than in 2020. Overall, the segment maintained a high ROA above 50% through this timeframe, suggesting robust asset utilization despite the recent softening.
- Cardiovascular Segment
- The Cardiovascular segment's ROA was not reported in 2018 and 2019 but showed steady progression starting in 2020. The value began at 26.51% in 2020, then escalated sharply to 42.74% in 2021, reflecting a marked improvement in asset returns. This upward trajectory indicates growing efficiency or profitability within the segment. In 2022, the ROA slightly decreased to 40.6%, showing a minor decline from the peak reached the previous year. Nevertheless, the segment exhibited substantial growth over the three-year period, nearly doubling its ROA from 2020 to 2021 and maintaining a strong performance subsequently.
In summary, both segments displayed an overall increase in ROA from 2020 to 2021, highlighting enhanced asset usage and profitability during this timeframe. While 2022 saw a moderate decline for each segment, their ROAs remained well above the 2020 levels, indicating sustained strength. The MedSurg segment consistently delivered higher returns compared to the Cardiovascular segment, suggesting greater asset efficiency or maturity. The slight decreases observed in 2022 may warrant further investigation to understand underlying factors and potential impacts on future performance.
Segment ROA: MedSurg
Boston Scientific Corp.; MedSurg; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × ÷ =
- Operating Income
- The operating income for the segment shows a consistent upward trend over the observed three-year period. Starting at 1,156 million US dollars at the end of 2020, it increased to 1,524 million US dollars in 2021 and further to 1,625 million US dollars by the end of 2022. This steady growth suggests improving operational performance and profitability within the segment.
- Total Assets
- Total assets associated with the segment also exhibited growth throughout the same timeframe. Assets rose from 1,992 million US dollars at the end of 2020 to 2,178 million US dollars in 2021, reaching 2,501 million US dollars by the end of 2022. This increase may indicate asset expansion or investment in the segment to support operational growth.
- Segment Return on Assets (ROA)
- The segment ROA demonstrates a notable improvement from 58.03% at the end of 2020 to 69.97% in 2021, indicating a significant increase in the efficiency of asset utilization to generate operating income. In 2022, the ROA slightly declined to 64.97%, though it remained substantially higher than the 2020 level. The pattern suggests an overall strong return performance with a minor moderation in the most recent year.
Segment ROA: Cardiovascular
Boston Scientific Corp.; Cardiovascular; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × ÷ =
- Operating Income
- The operating income for the period starting from December 31, 2020, shows a clear upward trend. It increased from 1,043 million US dollars in 2020 to 1,888 million US dollars in 2021, representing a significant growth. This positive trajectory continued in 2022, with operating income rising further to 2,113 million US dollars.
- Total Assets
- Total assets attributed to the segment also demonstrated a progressive increase over the analyzed period. Starting at 3,934 million US dollars in 2020, assets grew to 4,417 million US dollars in 2021 and reached 5,205 million US dollars in 2022. This steady asset growth signals ongoing investment and expansion within the segment.
- Segment Return on Assets (ROA)
- The segment ROA experienced notable fluctuations between 2020 and 2022. It was 26.51% in 2020, saw a sharp increase to 42.74% in 2021, and slightly declined to 40.6% in 2022. Despite this mild decrease, the ROA remained substantially higher than the initial value, indicating an overall improvement in asset profitability and operational efficiency in this segment.
Segment Asset Turnover
Boston Scientific Corp., asset turnover by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular |
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).
The annual reportable segment asset turnover data reveals distinct trends for the MedSurg and Cardiovascular segments over the observed periods.
- MedSurg Segment Asset Turnover
- The MedSurg segment shows asset turnover ratios starting from 1.93 in 2020, increasing to 2.12 in 2021, followed by a slight decrease to 2.02 in 2022. This suggests an improvement in asset efficiency from 2020 to 2021, with the company generating more revenue per unit of assets employed. However, the slight decline in 2022 indicates a marginal reduction in turnover efficiency, although the ratio remains relatively strong compared to the initial value observed in 2020.
- Cardiovascular Segment Asset Turnover
- The Cardiovascular segment displayed asset turnover ratios of 1.5 in 2020, rising to 1.63 in 2021, then slightly decreasing to 1.57 in 2022. This pattern mirrors the MedSurg segment, with an upward trend in asset turnover efficiency between 2020 and 2021, followed by a minor reduction in 2022. The ratios here are consistently lower than those observed for MedSurg, indicating relatively less revenue generated from assets in this segment over the periods.
- General Observations
- Both segments exhibit an initial phase of improvement in asset turnover, suggesting effective utilization of assets during that timeframe. The subsequent small declines in 2022 may indicate increasing asset bases or decreasing revenues not fully offset by asset growth. Despite this, both segments maintain turnover ratios above 1.5, reflecting reasonable asset utilization rates.
Segment Asset Turnover: MedSurg
Boston Scientific Corp.; MedSurg; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
- Net Sales
- The net sales for the segment exhibited a positive growth trend from 2019 onwards, starting at 3,844 million US dollars and increasing to 4,616 million US dollars in 2021. This upward trend continued into 2022, reaching 5,057 million US dollars. The data from 2018 and 2019 are unavailable, but the consistent increase from 2020 to 2022 suggests a strong revenue growth trajectory for this period.
- Total Assets
- Total assets showed a steady increase over the period for which data is available. Starting at 1,992 million US dollars in 2020, total assets grew to 2,178 million US dollars in 2021 and further to 2,501 million US dollars in 2022. This growth in assets indicates ongoing investments or accumulation of resources within the segment, supporting the expanding sales base.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures efficiency in generating sales from assets, showed an improving trend from 1.93 in 2020 to 2.12 in 2021. However, there was a slight decline to 2.02 in 2022. Despite the minor decrease, the overall ratio remained higher than in 2020, indicating generally efficient use of assets to drive sales, albeit with a slight dip in efficiency in the most recent period.
Segment Asset Turnover: Cardiovascular
Boston Scientific Corp.; Cardiovascular; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
- Net Sales
- Net sales in the cardiovascular segment demonstrated a positive trajectory over the observed years. Beginning at $5,913 million in 2020, sales increased to $7,212 million in 2021, and continued to rise to $8,161 million by the end of 2022. This reflects sustained growth in revenue generation within the segment over the three-year period.
- Total Assets
- Total assets allocated to the cardiovascular segment also exhibited an upward trend. From $3,934 million in 2020, assets grew to $4,417 million in 2021, and further to $5,205 million in 2022. This steady increase indicates ongoing investment and expansion of asset base within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset use in generating sales, showed slight fluctuations. It increased from 1.5 in 2020 to 1.63 in 2021, signifying improved asset utilization. However, in 2022, the ratio decreased marginally to 1.57, which may suggest a slight reduction in efficiency despite the increase in net sales and assets.
- Overall Insights
- The cardiovascular segment experienced consistent growth in both revenue and asset size between 2020 and 2022. While asset utilization improved initially, the slight decline in turnover ratio in the latest year warrants attention to maintain operational efficiency amidst growth. The financial data reflects a strong expansion phase with a need to monitor efficiency trends.
Net sales
Boston Scientific Corp., net sales by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular | |||||
| Total reportable segments |
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).
The annual reportable segment net sales data indicates a consistent upward trend from 2020 to 2022 in both MedSurg and Cardiovascular segments, as well as the total reportable segments.
- MedSurg Segment
- Net sales were reported at 3,844 million USD in 2020, rising to 4,616 million USD in 2021, and further increasing to 5,057 million USD in 2022. This represents a steady growth over the three-year period.
- Cardiovascular Segment
- This segment also demonstrated growth, with net sales increasing from 5,913 million USD in 2020 to 7,212 million USD in 2021, and then to 8,161 million USD in 2022. The increase is consistent and robust across the years.
- Total Reportable Segments
- The aggregate net sales for the total reportable segments increased correspondingly from 9,757 million USD in 2020 to 11,828 million USD in 2021, and further to 13,218 million USD in 2022. This upward trend reflects the combined growth in both segments.
The data for 2018 and 2019 is missing, preventing analysis of trends prior to 2020. However, for the years available, the company has demonstrated continuous growth in its net sales across both primary reportable segments and in total. The Cardiovascular segment remains the larger contributor to net sales relative to MedSurg, maintaining a significant share of total segment revenues.
Operating income
Boston Scientific Corp., operating income by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular | |||||
| Total reportable segments |
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).
- Operating Income Trends by Segment
- The reported operating income for the MedSurg segment shows a consistent upward trajectory from 2020 through 2022. Beginning at 1,156 million USD in 2020, it rose to 1,524 million USD in 2021, and further to 1,625 million USD in 2022. This reflects a steady and moderate growth over the three-year period.
- The Cardiovascular segment also experienced a significant increase in operating income during the same period. Starting with 1,043 million USD in 2020, the segment saw a sharp rise to 1,888 million USD in 2021, followed by a further increase to 2,113 million USD in 2022. The rate of growth here is notably higher compared to the MedSurg segment, particularly between 2020 and 2021.
- Total Reportable Segments
- Aggregate operating income for all reportable segments combined exhibited a pronounced growth pattern. From 2,199 million USD in 2020, the total sum surged to 3,412 million USD in 2021 and then increased further to 3,738 million USD in 2022. This increase underscores the overall strengthening performance across the segments.
- Insights and Observations
- The Cardiovascular segment contributed the largest incremental value to the total operating income growth, accounting for a substantial portion of the overall increase between 2020 and 2022. The MedSurg segment showed steady but more moderate growth, suggesting a stable contribution to the company’s income from this area.
- The absence of data prior to 2020 limits the ability to assess longer-term trends; however, available data clearly indicate robust post-2020 performance in both segments, with Cardiovascular outperforming MedSurg in terms of pace of income growth. This may reflect differences in market demand, product portfolio performance, or strategic focus.
Total assets
Boston Scientific Corp., total assets by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| MedSurg | |||||
| Cardiovascular | |||||
| Total reportable segments |
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).
- Overview of Total Reportable Segment Assets
- The total assets for the reportable segments demonstrate a clear upward trend over the three available years, showing consistent growth from 2020 through 2022.
- MedSurg Segment
- The MedSurg segment's assets increased steadily year-over-year, starting from 1,992 million USD in 2020 to 2,178 million USD in 2021, and further rising to 2,501 million USD in 2022. This indicates a positive growth trajectory with an approximate 12.3% increase from 2020 to 2021 and about 14.8% from 2021 to 2022.
- Cardiovascular Segment
- Assets in the Cardiovascular segment also showed robust growth. From 3,934 million USD in 2020, assets increased to 4,417 million USD in 2021 and then to 5,205 million USD in 2022. This represents an approximate 12.3% rise from 2020 to 2021 and an 17.8% increase from 2021 to 2022, indicating strong expansion within this segment.
- Total Reportable Segments
- The aggregation of segment assets demonstrates a progressive increase each year. From 5,926 million USD in 2020, the total climbed to 6,595 million USD in 2021, and further to 7,706 million USD in 2022. The overall growth rates are approximately 11.3% and 16.8% for the respective years, consistent with the growth observed in individual segments.
- Data Availability
- It should be noted that no data is reported for the years 2018 and 2019 across all segments, limiting the ability to analyze trends prior to 2020.