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Edwards Lifesciences Financial Strength

: 9 (As of Mar. 2022)
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Edwards Lifesciences has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Edwards Lifesciences Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Edwards Lifesciences's interest coverage with the available data. Edwards Lifesciences's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.13. As of today, Edwards Lifesciences's Altman Z-Score is 16.50.


Competitive Comparison

For the Medical Devices subindustry, Edwards Lifesciences's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Edwards Lifesciences Financial Strength Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Edwards Lifesciences's Financial Strength distribution charts can be found below:

* The bar in red indicates where Edwards Lifesciences's Financial Strength falls into.



Edwards Lifesciences Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Edwards Lifesciences's Interest Expense for the months ended in Mar. 2022 was $0 Mil. Its Operating Income for the months ended in Mar. 2022 was $443 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $664 Mil.

Edwards Lifesciences's Interest Coverage for the quarter that ended in Mar. 2022 is

GuruFocus does not calculate Edwards Lifesciences's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Edwards Lifesciences Corp has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Edwards Lifesciences's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(23.9 + 664.3) / 5364.8
=0.13

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Edwards Lifesciences has a Z-score of 16.50, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 16.5 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Edwards Lifesciences  (NYSE:EW) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Edwards Lifesciences has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Edwards Lifesciences Financial Strength Related Terms

Thank you for viewing the detailed overview of Edwards Lifesciences's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Edwards Lifesciences Business Description

Edwards Lifesciences logo
Industry
Address
One Edwards Way, Irvine, CA, USA, 92614
Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. Its key products include surgical tissue heart valves, transcatheter valve technologies, surgical clips, catheters, and monitoring systems used to measure a patient's heart function during surgery. The firm derives about 55% of its total sales from outside the U.S.
Executives
Ullem Scott B. officer: CVP, Chief Financial Officer C/O EDWARDS LIFESCIENCES CORPORATION ONE EDWARDS WAY IRVINE CA 92614
Bobo Donald E Jr officer: CVP,Strategy/Corp Development C/O EDWARDS LIFESCIENCES ONE EDWARDS WAY IRVINE CA 92614
Mussallem Michael A director, officer: Chairman & CEO C/O EDWARDS LIFESCIENCES CORP ONE EDWARDS WAY IRVINE CA 92614
Wang Huimin officer: CVP, Japan & Intercontinental C/O EDWARDS LIFESCIENCES ONE EDWARDS WAY IRVINE CA 92614
Wood Larry L officer: CVP, TAVR C/O EDWARDS LIFESCIENCES CORPORATION ONE EDWARDS WAY IRVINE CA 92614
Sellers Robert W.a. officer: VP, Corporate Controller ONE EDWARDS WAY IRVINE CA 92614
Szyman Catherine M. officer: CVP, Critical Care C/O EDWARDS LIFESCIENCES CORPORATION ONE EDWARDS WAY IRVINE CA 92614
Laviolette Paul A director ONE BOSTON PLACE 201 WASHINGTON STREET, SUITE 3900 BOSTON MA 02108
Lemercier Jean-luc M officer: CVP, EMEA, Canada, Latin Amer C/O ONE EDWARDS WAY IRVINE CA 92614
Sequeira Ramona director ONE EDWARDS WAY IRVINE CA 92614
Marsh Martha H. director 9769 WEXFORD CIRCLE GRANITE BAY CA 95746
Gallahue Kieran director 7530 DRAPER AVENUE SUITE 6 LA JOLLA CA 92037
Valeriani Nicholas J director C/O EDWARDS LIFESCIENCES CORPORATION ONE EDWARDS WAY IRVINE CA 92614
Stone Heisz Leslie director C/O PUBLIC STORAGE 701 WESTERN AVENUE GLENDALE CA 91201
Link William J Phd director ONE SANSOME STREET SUITE 3630 SAN FRANCISCO CA 94104

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