Analysis of Geographic Areas
Edwards Lifesciences Corp. operates in 4 regions: United States; Europe; Japan; and Rest of World.
Area Asset Turnover
Edwards Lifesciences Corp., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 2.48 | 2.32 | 2.98 | 3.20 | 3.13 |
| Europe | 6.01 | 5.05 | 9.27 | 24.18 | 29.26 |
| Japan | 26.85 | 22.55 | 20.49 | 59.22 | 46.09 |
| Rest of World | 1.64 | 1.40 | 1.59 | 1.80 | 2.48 |
Based on: 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), 10-K (reporting date: 2017-12-31).
- United States
- The asset turnover ratio in the United States shows a declining trend from 3.13 in 2017 to 2.32 in 2020, followed by a modest recovery to 2.48 in 2021. This indicates a decreasing efficiency in asset utilization over the initial years, with some improvement in the latest period.
- Europe
- Europe's asset turnover ratio exhibits a sharp decline over the period. Starting at a high of 29.26 in 2017, the ratio steadily decreases each year to reach 6.01 by 2021. This represents a substantial reduction in asset turnover efficiency, particularly notable between 2018 and 2020.
- Japan
- Japan's asset turnover ratio fluctuates significantly. It increases from 46.09 in 2017 to a peak of 59.22 in 2018, before sharply declining to 20.49 in 2019. Thereafter, a gradual improvement is observed with values rising to 26.85 in 2021. Despite volatility, the ratio remains higher than other regions except for the peak in 2018.
- Rest of World
- The Rest of World category shows a steady decline in asset turnover ratio from 2.48 in 2017 to 1.4 in 2020, with a slight rebound to 1.64 in 2021. Overall, the ratio remains low compared to other geographic areas, indicating lower efficiency in asset use.
- Summary
- Across all geographic areas, there is a general downward trend in asset turnover ratios from 2017 through 2020, reflecting decreasing asset efficiency in several regions. The year 2021 shows signs of stabilization or modest recovery in most areas. Europe and Japan exhibit the most pronounced fluctuations, with Japan reaching very high levels followed by sharp declines, while Europe experiences a consistent drop throughout the period. The United States and Rest of World show less volatility but also demonstrate an overall decline with some recovery at the end of the period.
Area Asset Turnover: United States
Edwards Lifesciences Corp.; United States; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 2,963,100) | 2,516,800) | 2,532,700) | 2,055,300) | 1,907,600) |
| Long-lived tangible assets | 1,195,800) | 1,084,300) | 849,100) | 642,100) | 608,700) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.48 | 2.32 | 2.98 | 3.20 | 3.13 |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= 2,963,100 ÷ 1,195,800 = 2.48
- Net Sales
- Net sales demonstrated a consistent upward trajectory from 2017 through 2021, increasing from 1,907,600 thousand US dollars in 2017 to 2,963,100 thousand US dollars in 2021. This represents a significant growth over the five-year period, with a notable jump between 2020 and 2021, suggesting strong revenue expansion.
- Long-lived Tangible Assets
- Long-lived tangible assets showed a steady increase annually, rising from 608,700 thousand US dollars in 2017 to 1,195,800 thousand US dollars by the end of 2021. The growth pace accelerated particularly after 2018, indicating continuous investment in physical assets and capacity expansion.
- Area Asset Turnover
- The area asset turnover ratio declined from 3.13 in 2017 to a low of 2.32 in 2020, followed by a slight recovery to 2.48 in 2021. This suggests that while net sales increased, the efficiency with which the company utilized its long-lived tangible assets decreased over the period, signaling potential overinvestment relative to sales or changing operational dynamics impacting asset productivity.
Area Asset Turnover: Europe
Edwards Lifesciences Corp.; Europe; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 1,190,300) | 973,600) | 941,200) | 885,100) | 831,000) |
| Long-lived tangible assets | 197,900) | 192,700) | 101,500) | 36,600) | 28,400) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 6.01 | 5.05 | 9.27 | 24.18 | 29.26 |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= 1,190,300 ÷ 197,900 = 6.01
- Net Sales
- Net sales in the Europe geographic area exhibited a consistent upward trend over the five-year period. Starting at $831 million in 2017, sales increased each year, reaching $1.19 billion in 2021. The most pronounced increase occurred between 2020 and 2021, where sales grew by approximately 22%, indicating strong market performance in the most recent year.
- Long-lived Tangible Assets
- Long-lived tangible assets showed a significant increase, particularly from 2018 to 2020. Beginning at $28.4 million in 2017, the asset base expanded moderately to $36.6 million in 2018, then surged to $101.5 million in 2019, and nearly doubled again to $192.7 million in 2020. The growth slowed in 2021 with assets totaling $197.9 million, suggesting major investment phases occurred primarily from 2018 to 2020, followed by relatively stable asset levels.
- Area Asset Turnover
- Area asset turnover, which measures the efficiency of asset use to generate sales, declined sharply over the period. It began at a high ratio of 29.26 in 2017 but decreased substantially to 24.18 in 2018, then dropped more dramatically to 9.27 in 2019. This downward trend continued through 2020, reaching a low of 5.05, with a slight recovery to 6.01 in 2021. The decline in asset turnover correlates with the significant increase in asset base, implying that sales growth did not keep pace proportionally with asset expansions during this timeframe.
- Summary
- Overall, the data reveal robust sales growth in the Europe area, supported by substantial investments in long-lived tangible assets from 2018 to 2020. However, the efficiency of asset utilization, as captured by area asset turnover, deteriorated markedly. This suggests a strategic focus on asset accumulation with a lag in corresponding sales expansion relative to those assets, potentially reflecting either the nature of investments made or a period of capacity building ahead of future sales increases.
Area Asset Turnover: Japan
Edwards Lifesciences Corp.; Japan; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 528,900) | 460,100) | 444,700) | 396,800) | 350,300) |
| Long-lived tangible assets | 19,700) | 20,400) | 21,700) | 6,700) | 7,600) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 26.85 | 22.55 | 20.49 | 59.22 | 46.09 |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= 528,900 ÷ 19,700 = 26.85
- Net Sales
- Net sales displayed a consistent upward trend over the analyzed five-year period. Starting at $350.3 million in 2017, sales increased annually, reaching $528.9 million by the end of 2021. This represents a notable growth in revenue, indicating expanding market presence or increased demand in the Japan geographic area.
- Long-lived Tangible Assets
- The value of long-lived tangible assets experienced fluctuations throughout the period. From $7.6 million in 2017, the asset base slightly decreased to $6.7 million in 2018, before a significant increase to $21.7 million in 2019. This elevated level slightly declined in subsequent years, dropping to $20.4 million in 2020 and $19.7 million in 2021. The substantial increase in 2019 suggests a major investment or acquisition of physical assets, followed by minor reductions perhaps due to disposals or depreciation.
- Area Asset Turnover Ratio
- This ratio, which measures the efficiency in utilizing assets to generate sales, showed marked variability. It peaked at 59.22 in 2018, indicating very high efficiency that year, but sharply declined to 20.49 in 2019, coinciding with the increase in asset base. This decline suggests that the increase in tangible assets was not immediately matched by proportional sales growth. Subsequently, the ratio improved gradually to 22.55 in 2020 and 26.85 in 2021, showing a trend towards better asset utilization, though still substantially below the 2018 peak.
- Summary
- Overall, the data reveals solid sales growth in the Japan area accompanied by significant investment in tangible assets, particularly in 2019. While asset investment temporarily reduced asset turnover efficiency, subsequent years have seen a recovery in this metric. The pattern suggests a strategic expansion phase with asset accumulation followed by a phase of optimizing asset usage to support increasing sales.
Area Asset Turnover: Rest of World
Edwards Lifesciences Corp.; Rest of World; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 550,200) | 435,800) | 429,400) | 385,600) | 346,400) |
| Long-lived tangible assets | 335,500) | 311,000) | 269,400) | 214,400) | 139,700) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.64 | 1.40 | 1.59 | 1.80 | 2.48 |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= 550,200 ÷ 335,500 = 1.64
- Net Sales
- Net sales show a consistent upward trend over the five-year period, increasing from $346.4 million in 2017 to $550.2 million in 2021. The growth was relatively steady each year, with the most significant increase occurring between 2020 and 2021, reflecting a notable expansion in revenue within the geographic area during this time.
- Long-lived Tangible Assets
- Long-lived tangible assets experienced substantial growth throughout the period, rising from $139.7 million in 2017 to $335.5 million in 2021. This reflects a strategic investment in physical assets, with particularly large increases occurring between 2017 and 2019, and continued albeit slower growth through to 2021.
- Area Asset Turnover Ratio
- The area asset turnover ratio shows a declining trend from 2.48 in 2017 down to a low of 1.4 in 2020, before a slight recovery to 1.64 in 2021. The downward trend indicates that asset utilization efficiency decreased over the years, meaning that each dollar of asset generated fewer sales. However, the rebound in 2021 suggests an improvement in how effectively the assets were used to drive sales in the last year of the dataset.
- Overall Analysis
- The data indicates a pattern of strong sales growth accompanied by significant increases in tangible asset investments. Despite the sales growth, asset turnover efficiency declined for most of the period, implying that asset growth outpaced sales growth, which may warrant further evaluation of asset deployment and operational efficiency. The improvement in asset turnover in the final year suggests a potential positive shift in asset management or sales productivity within the geographic area.
Net sales
Edwards Lifesciences Corp., net sales by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 2,963,100) | 2,516,800) | 2,532,700) | 2,055,300) | 1,907,600) |
| Europe | 1,190,300) | 973,600) | 941,200) | 885,100) | 831,000) |
| Japan | 528,900) | 460,100) | 444,700) | 396,800) | 350,300) |
| Rest of World | 550,200) | 435,800) | 429,400) | 385,600) | 346,400) |
| Total | 5,232,500) | 4,386,300) | 4,348,000) | 3,722,800) | 3,435,300) |
Based on: 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), 10-K (reporting date: 2017-12-31).
- United States
- The net sales in the United States showed a consistent upward trend over the five-year period. Starting at approximately 1.91 billion USD in 2017, sales increased steadily to about 2.05 billion USD in 2018, followed by a more pronounced rise to 2.53 billion USD in 2019. After a slight dip in 2020 to 2.52 billion USD, the figures rebounded strongly in 2021, reaching around 2.96 billion USD. Overall, the U.S. market demonstrated robust growth with a minor fluctuation in 2020.
- Europe
- Sales in Europe exhibited a consistent incremental growth each year. Beginning at 831 million USD in 2017, sales gradually increased to 885 million USD in 2018, then to 941 million USD in 2019. This upward trajectory continued in 2020 with sales reaching 974 million USD, and in 2021 sales rose markedly to approximately 1.19 billion USD. The growth in this region reflects steady expansion, with a notable acceleration in the most recent year.
- Japan
- The Japanese market also showed continuous growth throughout the period. Sales increased from 350 million USD in 2017 to 397 million USD in 2018, followed by ongoing growth to 445 million USD in 2019 and 460 million USD in 2020. In 2021, sales reached around 529 million USD. The steady upward trend indicates steady demand and market expansion over the years.
- Rest of World
- Net sales reported in the Rest of World category displayed consistent year-on-year growth. Starting at 346 million USD in 2017, sales progressed to 386 million USD in 2018 and 429 million USD in 2019, then marginally increased to 436 million USD in 2020. A more pronounced increase occurred in 2021, with sales climbing to 550 million USD. This pattern suggests a gradual, steady market development with a stronger boost in the final year of the analysis.
- Total
- Total net sales across all geographic areas rose significantly over the period from about 3.44 billion USD in 2017 to approximately 5.23 billion USD in 2021. The total sales growth was relatively steady, with a marked acceleration particularly notable in 2019 and 2021. The modest increase in 2020 aligns with the slight dip or slowdown observed in some regions during that year. Overall, the combined data indicate strong and consistent revenue growth across all regions, with the United States representing the largest single contributor in absolute terms.
Long-lived tangible assets
Edwards Lifesciences Corp., long-lived tangible assets by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 1,195,800) | 1,084,300) | 849,100) | 642,100) | 608,700) |
| Europe | 197,900) | 192,700) | 101,500) | 36,600) | 28,400) |
| Japan | 19,700) | 20,400) | 21,700) | 6,700) | 7,600) |
| Rest of World | 335,500) | 311,000) | 269,400) | 214,400) | 139,700) |
| Total | 1,748,900) | 1,608,400) | 1,241,700) | 899,800) | 784,400) |
Based on: 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), 10-K (reporting date: 2017-12-31).
The data indicates a consistent upward trend in long-lived tangible assets across all geographic areas over the five-year period. This growth reflects ongoing investment and asset accumulation globally.
- United States
- The United States represents the largest portion of long-lived tangible assets. Values rose steadily from US$608,700 thousand at the end of 2017 to US$1,195,800 thousand by the end of 2021. This represents nearly a twofold increase, with particularly notable jumps from 2018 to 2019 and 2019 to 2020, demonstrating substantial asset growth in the domestic market.
- Europe
- Europe shows a marked increase in assets, growing from US$28,400 thousand in 2017 to US$197,900 thousand in 2021. This represents almost a sevenfold increase over the period. The most significant expansions occurred between 2018 and 2019 and from 2019 to 2020, reflecting accelerated investments or acquisitions in this region during these years.
- Japan
- Japan’s long-lived tangible assets have remained relatively stable with minor fluctuations. After a slight decline from US$7,600 thousand in 2017 to US$6,700 thousand in 2018, there was a sharp increase to US$21,700 thousand in 2019, followed by a modest decline to US$19,700 thousand by 2021. This pattern suggests a one-time asset build-up in 2019, with a slight tapering off thereafter.
- Rest of World
- The Rest of World category has also shown consistent growth over the years, increasing from US$139,700 thousand in 2017 to US$335,500 thousand in 2021. The asset base nearly doubled in this timeframe, with steady incremental rises each year. This indicates expanding asset holdings in regions outside the primary markets of the United States, Europe, and Japan.
- Total
- The aggregate long-lived tangible assets grew from US$784,400 thousand in 2017 to US$1,748,900 thousand in 2021, more than doubling over the period. The largest contributors to this growth are the United States and Europe, followed by significant increases in the Rest of World category. Japan’s contribution remains comparatively small and fluctuating.
Overall, the data reveals strategic asset growth focused primarily on the United States and Europe, complemented by expanding investments in other global markets, suggesting a broad geographic diversification in long-lived tangible asset holdings.