Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Medtronic PLC, short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Medtronic PLC inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Medtronic PLC receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Medtronic PLC payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Medtronic PLC working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Medtronic PLC number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Medtronic PLC number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Medtronic PLC operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Medtronic PLC number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Medtronic PLC cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
Medtronic PLC, inventory turnover calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold, excluding amortization of intangible assets | 10,719) | 10,145) | 10,483) | 9,424) | 9,155) | 9,055) | |
| Inventories, net | 5,293) | 4,616) | 4,313) | 4,229) | 3,753) | 3,579) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.03 | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Abbott Laboratories | 2.74 | 3.10 | 3.59 | 2.99 | 3.07 | — | |
| Cigna Group | 23.70 | 26.13 | 31.58 | 32.70 | 36.70 | — | |
| CVS Health Corp. | 16.83 | 14.05 | 13.52 | 11.88 | 12.06 | — | |
| Intuitive Surgical Inc. | 1.96 | 2.27 | 2.98 | 2.49 | 2.30 | — | |
| Shockwave Medical Inc. | 0.89 | 0.87 | 0.96 | 0.70 | 1.42 | — | |
| Inventory Turnover, Sector | |||||||
| Health Care Equipment & Services | 25.04 | 23.23 | 23.66 | 20.87 | 21.65 | — | |
| Inventory Turnover, Industry | |||||||
| Health Care | 10.70 | 10.72 | 10.84 | 9.79 | 9.91 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Inventory turnover = Cost of products sold, excluding amortization of intangible assets ÷ Inventories, net
= 10,719 ÷ 5,293 = 2.03
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Medtronic PLC inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Medtronic PLC, receivables turnover calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 31,227) | 31,686) | 30,117) | 28,913) | 30,557) | 29,953) | |
| Accounts receivable, less allowances and credit losses | 5,998) | 5,551) | 5,462) | 4,645) | 6,222) | 5,987) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 5.21 | 5.71 | 5.51 | 6.22 | 4.91 | 5.00 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 6.11 | 7.02 | 6.64 | 5.40 | 5.88 | — | |
| Cigna Group | 17.06 | 18.64 | 19.35 | 19.47 | 20.05 | — | |
| CVS Health Corp. | 10.12 | 11.79 | 11.91 | 12.32 | 13.04 | — | |
| Elevance Health Inc. | 18.08 | 18.81 | 20.66 | 19.72 | 18.20 | — | |
| Humana Inc. | 51.75 | 55.25 | 45.69 | 66.78 | 60.97 | — | |
| Intuitive Surgical Inc. | 6.30 | 6.60 | 7.30 | 6.75 | 6.94 | — | |
| Shockwave Medical Inc. | 6.37 | 6.86 | 6.33 | 5.80 | 5.82 | — | |
| UnitedHealth Group Inc. | 17.27 | 18.22 | 20.07 | 19.86 | 20.32 | — | |
| Receivables Turnover, Sector | |||||||
| Health Care Equipment & Services | 13.46 | 14.72 | 14.99 | 15.09 | 14.96 | — | |
| Receivables Turnover, Industry | |||||||
| Health Care | 9.02 | 9.71 | 9.51 | 9.57 | 9.86 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances and credit losses
= 31,227 ÷ 5,998 = 5.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Medtronic PLC receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Payables Turnover
Medtronic PLC, payables turnover calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold, excluding amortization of intangible assets | 10,719) | 10,145) | 10,483) | 9,424) | 9,155) | 9,055) | |
| Accounts payable | 2,662) | 2,276) | 2,106) | 1,996) | 1,953) | 1,628) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 4.03 | 4.46 | 4.98 | 4.72 | 4.69 | 5.56 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 4.19 | 4.15 | 4.21 | 3.80 | 4.07 | — | |
| Cigna Group | 6.75 | 7.31 | 7.68 | 7.75 | 9.34 | — | |
| CVS Health Corp. | 20.36 | 18.07 | 19.14 | 19.72 | 20.13 | — | |
| Elevance Health Inc. | 7.72 | 7.47 | 7.59 | 7.75 | 9.25 | — | |
| Humana Inc. | 8.63 | 8.17 | 8.35 | 7.57 | 8.97 | — | |
| Intuitive Surgical Inc. | 12.69 | 13.78 | 14.45 | 18.35 | 11.08 | — | |
| Shockwave Medical Inc. | 10.76 | 9.67 | 11.77 | 14.32 | 6.15 | — | |
| UnitedHealth Group Inc. | 7.47 | 7.26 | 7.63 | 7.29 | 7.21 | — | |
| Payables Turnover, Sector | |||||||
| Health Care Equipment & Services | 9.17 | 8.91 | 9.25 | 9.16 | 9.95 | — | |
| Payables Turnover, Industry | |||||||
| Health Care | 7.84 | 7.53 | 7.67 | 7.51 | 8.04 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Payables turnover = Cost of products sold, excluding amortization of intangible assets ÷ Accounts payable
= 10,719 ÷ 2,662 = 4.03
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Medtronic PLC payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Medtronic PLC, working capital turnover calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 21,675) | 23,059) | 22,548) | 22,031) | 21,967) | 22,980) | |
| Less: Current liabilities | 9,051) | 12,394) | 8,509) | 10,366) | 8,472) | 10,084) | |
| Working capital | 12,624) | 10,665) | 14,039) | 11,665) | 13,495) | 12,896) | |
| Net sales | 31,227) | 31,686) | 30,117) | 28,913) | 30,557) | 29,953) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 2.47 | 2.97 | 2.15 | 2.48 | 2.26 | 2.32 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Abbott Laboratories | 4.54 | 4.48 | 3.87 | 4.06 | 6.64 | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | 7.83 | 8.37 | 7.23 | 6.39 | 6.11 | — | |
| Humana Inc. | 9.47 | 10.27 | 8.67 | 7.42 | 7.19 | — | |
| Intuitive Surgical Inc. | 1.14 | 1.29 | 1.22 | 0.77 | 1.23 | — | |
| Shockwave Medical Inc. | 0.65 | 1.24 | 1.01 | 0.31 | 0.22 | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Health Care Equipment & Services | 80.09 | 70.96 | 40.49 | 43.85 | 58.67 | — | |
| Working Capital Turnover, Industry | |||||||
| Health Care | 20.67 | 19.44 | 13.83 | 13.69 | 8.99 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 31,227 ÷ 12,624 = 2.47
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Medtronic PLC working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Average Inventory Processing Period
Medtronic PLC, average inventory processing period calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 2.03 | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 180 | 166 | 150 | 164 | 150 | 144 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Abbott Laboratories | 133 | 118 | 102 | 122 | 119 | — | |
| Cigna Group | 15 | 14 | 12 | 11 | 10 | — | |
| CVS Health Corp. | 22 | 26 | 27 | 31 | 30 | — | |
| Intuitive Surgical Inc. | 186 | 161 | 122 | 147 | 159 | — | |
| Shockwave Medical Inc. | 412 | 422 | 379 | 519 | 257 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Health Care Equipment & Services | 15 | 16 | 15 | 17 | 17 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Health Care | 34 | 34 | 34 | 37 | 37 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.03 = 180
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Medtronic PLC number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Medtronic PLC, average receivable collection period calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 5.21 | 5.71 | 5.51 | 6.22 | 4.91 | 5.00 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 70 | 64 | 66 | 59 | 74 | 73 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Abbott Laboratories | 60 | 52 | 55 | 68 | 62 | — | |
| Cigna Group | 21 | 20 | 19 | 19 | 18 | — | |
| CVS Health Corp. | 36 | 31 | 31 | 30 | 28 | — | |
| Elevance Health Inc. | 20 | 19 | 18 | 19 | 20 | — | |
| Humana Inc. | 7 | 7 | 8 | 5 | 6 | — | |
| Intuitive Surgical Inc. | 58 | 55 | 50 | 54 | 53 | — | |
| Shockwave Medical Inc. | 57 | 53 | 58 | 63 | 63 | — | |
| UnitedHealth Group Inc. | 21 | 20 | 18 | 18 | 18 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Health Care Equipment & Services | 27 | 25 | 24 | 24 | 24 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Health Care | 40 | 38 | 38 | 38 | 37 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.21 = 70
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Medtronic PLC number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Cycle
Medtronic PLC, operating cycle calculation, comparison to benchmarks
No. days
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 180 | 166 | 150 | 164 | 150 | 144 | |
| Average receivable collection period | 70 | 64 | 66 | 59 | 74 | 73 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 250 | 230 | 216 | 223 | 224 | 217 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Abbott Laboratories | 193 | 170 | 157 | 190 | 181 | — | |
| Cigna Group | 36 | 34 | 31 | 30 | 28 | — | |
| CVS Health Corp. | 58 | 57 | 58 | 61 | 58 | — | |
| Intuitive Surgical Inc. | 244 | 216 | 172 | 201 | 212 | — | |
| Shockwave Medical Inc. | 469 | 475 | 437 | 582 | 320 | — | |
| Operating Cycle, Sector | |||||||
| Health Care Equipment & Services | 42 | 41 | 39 | 41 | 41 | — | |
| Operating Cycle, Industry | |||||||
| Health Care | 74 | 72 | 72 | 75 | 74 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 180 + 70 = 250
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Medtronic PLC operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Medtronic PLC, average payables payment period calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 4.03 | 4.46 | 4.98 | 4.72 | 4.69 | 5.56 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 91 | 82 | 73 | 77 | 78 | 66 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Abbott Laboratories | 87 | 88 | 87 | 96 | 90 | — | |
| Cigna Group | 54 | 50 | 48 | 47 | 39 | — | |
| CVS Health Corp. | 18 | 20 | 19 | 19 | 18 | — | |
| Elevance Health Inc. | 47 | 49 | 48 | 47 | 39 | — | |
| Humana Inc. | 42 | 45 | 44 | 48 | 41 | — | |
| Intuitive Surgical Inc. | 29 | 26 | 25 | 20 | 33 | — | |
| Shockwave Medical Inc. | 34 | 38 | 31 | 25 | 59 | — | |
| UnitedHealth Group Inc. | 49 | 50 | 48 | 50 | 51 | — | |
| Average Payables Payment Period, Sector | |||||||
| Health Care Equipment & Services | 40 | 41 | 39 | 40 | 37 | — | |
| Average Payables Payment Period, Industry | |||||||
| Health Care | 47 | 48 | 48 | 49 | 45 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.03 = 91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Medtronic PLC number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Medtronic PLC, cash conversion cycle calculation, comparison to benchmarks
No. days
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 180 | 166 | 150 | 164 | 150 | 144 | |
| Average receivable collection period | 70 | 64 | 66 | 59 | 74 | 73 | |
| Average payables payment period | 91 | 82 | 73 | 77 | 78 | 66 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 159 | 148 | 143 | 146 | 146 | 151 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Abbott Laboratories | 106 | 82 | 70 | 94 | 91 | — | |
| Cigna Group | -18 | -16 | -17 | -17 | -11 | — | |
| CVS Health Corp. | 40 | 37 | 39 | 42 | 40 | — | |
| Intuitive Surgical Inc. | 215 | 190 | 147 | 181 | 179 | — | |
| Shockwave Medical Inc. | 435 | 437 | 406 | 557 | 261 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Health Care Equipment & Services | 2 | 0 | 0 | 1 | 4 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Health Care | 27 | 24 | 24 | 26 | 29 | — | |
Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 180 + 70 – 91 = 159
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Medtronic PLC cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |