Financial statement analysis and common stock valuation

Income Statement

The income statement (statement of earnings) reports on the performance of Medtronic PLC, the result of its operating activities.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Medtronic PLC common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Reportable Segments

Medtronic PLC operates in 4 segments: Cardiovascular Portfolio; Neuroscience Portfolio; Medical Surgical Portfolio; and Diabetes Operating Unit.

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Net sales
• Segment operating profit
• Total assets

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Medtronic PLC cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Medtronic PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Medtronic PLC reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Medtronic PLC earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Analysis of Solvency Ratios

Examines Medtronic PLC capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt