Home / Street Sector / Critical Profitability Ratio Analysis under Limelight: Boston Scientific (NYSE:BSX), Edwards Lifesciences (NYSE:EW)

Critical Profitability Ratio Analysis under Limelight: Boston Scientific (NYSE:BSX), Edwards Lifesciences (NYSE:EW)

Moving on tracing line, Boston Scientific Corporation (NYSE:BSX) need to consider for profitability analysis, in latest session share price swings at $23.12 with percentage change of 1.31%.

The Co has negative -4.30% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 71.10% and -7.70% respectively. BSX has returns on investment of 0.70%. The returns on assets was -1.90% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -5.40%, which is measuring profitability by disclosing how much profit generates by BSX with the shareholders’ money.

The firm attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of -0.17%. The firm current ratio calculated as 1.00, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.70, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.87, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, Edwards Lifesciences Corp. (NYSE:EW) also making a luring appeal, share price swings at $118.22 with percentage change of 2.31% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 19.30% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 74.30% and 24.40% respectively. Moving toward returns ratio, EW has returns on investment of 15.90% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 13.30% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 21.80%, which is measuring a corporation’s profitability by revealing how much profit generates by EW with the shareholders’ money. The firm attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of -0.03%.

Moving toward ratio analysis, it has current ratio of 4.20 and quick ratio was calculated as 3.40. The debt to equity ratio appeared as 0.24 for seeing its liquidity position. The firm attains analyst recommendation of 2.00 out of 1-5 scale with week’s performance of -0.03%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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