Medtronic PLC (NYSE:MDT)

Goodwill

Goodwill demonstrates moderate fluctuations over the observed periods, starting at 39,841 million USD in April 2020 and rising to a peak of 41,961 million USD in April 2021. It then decreases slightly to 40,502 million USD in April 2022, followed by minor fluctuations, ending at 41,737 million USD in April 2025. Overall, the goodwill balance remains relatively stable with minor variations throughout the years.

Customer-related Intangible Assets

The customer-related intangible assets exhibit slight variability, beginning at 16,963 million USD in April 2020 and hovering around the 16,500 to 17,000 million USD range. A small decline is observed in the last two reporting periods, reaching 16,550 million USD in April 2025, indicating a gradual decrease in this asset category.

Purchased Technology and Patents

This asset category shows an overall increasing trend with some variability. Starting from 10,742 million USD in April 2020, it peaks at 11,659 million USD in April 2023. The values slightly decrease and stabilize afterward, finishing at 11,600 million USD in April 2025. This suggests ongoing investment or capitalized costs in technology and patents.

Trademarks and Tradenames

Trademarks and tradenames values remain relatively constant initially, ranging between 464 and 486 million USD from April 2020 to April 2023. However, there is a noticeable decline in the last two years, decreasing to 421 million USD by April 2025, which may indicate impairment or amortization effects.

Other Intangible Assets

This category shows a significant upward trend. From a modest 75 million USD in April 2020, it increases consistently each year to reach 354 million USD by April 2025. This growth could be due to the recognition of additional intangible items or reclassification within the intangible assets.

Definite-lived Intangible Assets, Gross Carrying Amount

The gross carrying amount of definite-lived intangible assets shows minor fluctuations within the range of approximately 28,244 million USD to 29,217 million USD over the years. There is no clear upward or downward trend, indicating relative stability in the acquisition or retention of these assets.

Accumulated Amortization

Accumulated amortization consistently increases in magnitude (negative values), moving from -9,704 million USD in April 2020 to -17,547 million USD in April 2025. This steady increase reflects ongoing amortization expense recognized against definite-lived intangible assets, reducing their net book value over time.

Definite-lived Intangible Assets, Net

The net definite-lived intangible assets decline steadily from 18,540 million USD in April 2020 to 11,378 million USD in April 2025, largely influenced by the continuous accumulation of amortization. This downward trend suggests that without substantial new acquisitions, net book values of these assets are eroding due to amortization.

IPR&D and Indefinite-lived Intangible Assets

Both the in-process research and development (IPR&D) and indefinite-lived intangible assets categories show a similar pattern, decreasing from 523 million USD in April 2020 to lower levels during the middle periods before somewhat recovering and then declining again to 289 million USD by April 2025. The fluctuations indicate variability in capitalized development costs or reclassifications but generally indicate a reduced value over time.

Intangible Assets, Net

Net intangible assets decline steadily from 19,063 million USD in April 2020 to 11,667 million USD in April 2025. This overall decrease reflects the combined effects of amortization and possibly limited additions, consistent with trends seen in definite-lived intangible assets and IPR&D.

Goodwill and Other Intangible Assets, Net

The combined net value of goodwill and other intangible assets remains relatively stable but exhibits a gradual decreasing trend, starting at 58,904 million USD in April 2020 and falling to 53,404 million USD by April 2025. This reduction is predominantly driven by the decline in net intangible assets, despite relatively stable goodwill balances.

Total Assets (Reported vs. Adjusted)

The reported total assets remained relatively stable over the six-year period, fluctuating within a narrow range from approximately 90,689 million USD in April 2020 to 91,680 million USD in April 2025. There was a slight dip notable in 2024 at 89,981 million USD, followed by a small recovery the following year. In contrast, the adjusted total assets, which exclude goodwill, show a consistent decreasing trend, declining from 50,848 million USD in April 2020 to 49,943 million USD in April 2025. This gradual decrease suggests that the company's underlying asset base, excluding goodwill, has slightly contracted over the analyzed period.

Shareholders’ Equity (Reported vs. Adjusted)

The reported shareholders’ equity shows modest fluctuations around the 50,000 million USD mark, peaking at 52,551 million USD in April 2022 before trending downward to 48,024 million USD by April 2025. This reflects a decline in the company’s net book value over the latter years. Meanwhile, the adjusted shareholders’ equity, which also excludes goodwill, demonstrates a more pronounced downward trajectory, falling from 10,896 million USD in April 2020 to 6,287 million USD in April 2025. This steeper decline implies a significant reduction in the company's net asset value when goodwill is excluded, indicating potential impairment charges or adjustments related to intangible assets over time.

General Insights

The stability in reported total assets paired with a declining adjusted asset base points to a substantial portion of the reported assets being goodwill or related intangible assets. The divergence between reported and adjusted equity further underscores the impact of goodwill and intangible asset adjustments on the company's financial position. The continuous decrease in adjusted figures suggests caution regarding the sustainability of asset values and equity, particularly from the perspective of tangible or non-goodwill assets. Overall, the data reflects a stable reported asset environment but a weakening adjusted equity position, which may warrant closer examination of goodwill impairment and intangible asset valuations in the company’s financial reporting.

Total Asset Turnover

The reported total asset turnover shows a generally stable trend with a slight improvement from 0.32 in 2020 to 0.37 in 2025. The adjusted total asset turnover, which accounts for goodwill, is consistently higher and exhibits a more pronounced increase from 0.57 to 0.67 over the same period. This suggests improved efficiency in asset utilization when goodwill adjustments are considered.

Financial Leverage

The reported financial leverage remains relatively stable, fluctuating between 1.73 and 1.91 throughout the years, indicating consistent use of debt or equity leverage. In contrast, the adjusted financial leverage shows more volatility and a marked increase, rising significantly from 4.67 in 2020 to 7.94 in 2025. This large growth in adjusted leverage suggests increased reliance on financing structures once goodwill is adjusted for, potentially indicating higher financial risk or strategic capital structuring.

Return on Equity (ROE)

The reported ROE displays moderate fluctuations with values ranging from a low of 7.01% in 2021 to a high of 9.71% in 2025, indicating relatively modest returns to shareholders over the analyzed period. Adjusted ROE, however, is substantially higher and more variable, starting at 43.95% in 2020, dipping around 37-42% in the middle years, and spiking significantly to 74.15% in 2025. This large disparity points to considerable goodwill impact on equity returns, with adjusted figures reflecting a much stronger profitability trend.

Return on Assets (ROA)

The reported ROA follows a pattern of modest variability, ranging approximately from 3.87% to 5.54%, showing moderate effectiveness in asset use to generate profits. The adjusted ROA values are higher in all years, rising from 7.05% to 9.98% in the middle years and settling near 9.33% by 2025. This indicates that asset performance is substantially better when adjusted for goodwill, highlighting the positive influence of asset quality or impairment adjustments on profitability metrics.

Overall Analysis

The data reveals that adjustments for goodwill have a significant impact on financial ratios, generally showing higher efficiency, leverage, and profitability than reported figures. The increasing trend in both adjusted total asset turnover and adjusted financial leverage suggests strategic asset use combined with elevated financial risk or capital structuring complexity. While reported ROE and ROA metrics indicate steady but moderate performance, the adjusted values demonstrate much stronger returns and fluctuations, which may reflect changes in asset valuation, impairment, or acquisition accounting practices over the period. Careful consideration of goodwill effects is therefore essential for a comprehensive understanding of the company’s financial health and operational efficiency.

Total Assets

The reported total assets exhibited minor fluctuations over the periods, starting at US$90,689 million in April 2020, reaching a peak of US$93,083 million in April 2021, and then gradually declining to US$89,981 million by April 2024, with a slight increase to US$91,680 million in April 2025. This reflects a general stability with slight volatility but no substantial growth trend.

The adjusted total assets, which likely exclude goodwill or intangible assets, showed a declining trend from US$50,848 million in April 2020 to US$48,995 million in April 2024. There was a modest recovery to US$49,943 million by April 2025. This decline suggests a reduction or write-down of certain asset components adjusted for goodwill over the timeframe.

Total Asset Turnover

The reported total asset turnover ratio remained relatively stable around 0.32 in April 2020 and 2021, with a slight increase to 0.35 in April 2022. Subsequently, it decreased marginally to 0.34 in April 2023, before rising steadily to 0.36 and 0.37 in April 2024 and 2025, respectively. This indicates a moderate improvement in the company's efficiency in generating revenue from its reported total assets towards the later years.

The adjusted total asset turnover ratio demonstrated a more pronounced upward trend, increasing from 0.57 in April 2020 to 0.59 in April 2021, then continuing to rise to 0.63 by April 2022 and 2023. The ratio further increased to 0.66 and 0.67 in April 2024 and 2025, respectively. This consistently improving performance suggests enhanced operational efficiency when excluding goodwill, possibly reflecting better asset utilization or more productive core assets.

The financial data reveals several noteworthy trends over the examined periods, particularly when comparing reported and goodwill-adjusted figures. The analysis focuses on the total assets, shareholders’ equity, and financial leverage metrics.

Total Assets

The reported total assets show a relatively stable pattern, starting at US$90,689 million in 2020 and fluctuating slightly to reach US$91,680 million by 2025. There is a mild decrease observed around 2023 and 2024, but the overall range remains narrow, indicating minimal volatility.

In contrast, the adjusted total assets, which likely exclude goodwill or intangible assets, present a declining trend. Starting at US$50,848 million in 2020, the value decreases each year, reaching US$49,943 million in 2025. This implies a gradual reduction in the company's core asset base over time.

Shareholders’ Equity

The reported shareholders’ equity begins at US$50,737 million in 2020 and slightly increases to US$52,551 million by 2022. Subsequently, it declines steadily, lowering to US$48,024 million by 2025. This suggests some erosion of equity value despite initial growth.

The adjusted shareholders’ equity demonstrates a more pronounced downward trend. It starts at US$10,896 million in 2020, fluctuates with a peak at US$12,049 million in 2022, then consistently decreases to US$6,287 million in 2025. The sharper decline could reflect the impact of excluding intangible assets, highlighting potential underlying weakening in tangible equity.

Financial Leverage

Reported financial leverage remains relatively steady, varying marginally around approximately 1.7 to 1.9 throughout the period. This stability aligns with the nearly constant reported total assets and shareholders’ equity values.

The adjusted financial leverage, however, exhibits a significant upward trajectory. From 4.67 in 2020, it rises with some fluctuation to 7.94 in 2025, indicating increasing reliance on debt or liabilities relative to adjusted equity. This growing leverage ratio suggests elevated financial risk when intangible assets are excluded from the assessment.

In summary, the reported data imply overall stability in asset base and financial structure, with minor fluctuations in equity and leverage. However, the adjusted data paint a more cautious picture, showing reductions in tangible assets and equity alongside rising financial leverage, highlighting potential risks and weakening in the company’s fundamental financial position over the period analyzed.

The financial data reveals distinct trends in shareholders' equity and return on equity (ROE), both in reported terms and when adjusted for goodwill. Over the six-year period, the reported shareholders' equity exhibited a gradual decline, decreasing from approximately $50.7 billion in 2020 to about $48.0 billion in 2025. Despite minor fluctuations, this downward trend suggests a reduction in the company's net asset base as reported on the balance sheet.

In contrast, adjusted shareholders' equity, which likely excludes the impact of goodwill and other intangible assets, showed more volatility. Starting at roughly $10.9 billion in 2020, it declined to about $6.3 billion by 2025, with fluctuations apparent in interim years. The most notable drop occurred between 2024 and 2025, indicating a significant reduction in tangible equity or a reassessment of asset values excluding goodwill.

Reported Return on Equity (ROE)

Reported ROE values fluctuated moderately over the period, initially decreasing from 9.44% in 2020 to a low of 7.01% in 2021. Subsequently, ROE trended upward with minor variations, reaching 9.71% by 2025. This pattern suggests some recovery in profitability relative to reported equity despite the overall decline in the equity base.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE demonstrated substantially higher and more variable figures compared to reported ROE, starting at 43.95% in 2020 and slightly declining until 2023. From 2023 onward, adjusted ROE increased sharply, culminating in a significant rise to 74.15% in 2025. This indicates a substantial improvement in profitability when goodwill adjustments are considered, likely reflecting operational performance more accurately by excluding intangible assets that may dilute equity.

Overall, the contrasting trends between reported and adjusted figures highlight the impact of goodwill on the company's financial presentation. While reported equity shows a modest decline, the sharp decrease in adjusted equity alongside a marked increase in adjusted ROE suggests improved efficiency and profitability relative to tangible capital employed. The data underscores the importance of considering goodwill adjustments in evaluating the company's true financial health and performance over time.

The financial data reveals several notable trends in both reported and goodwill-adjusted figures over the six-year period.

Total Assets

The reported total assets showed a slight fluctuation, beginning at approximately 90.7 billion USD in 2020 and rising to a peak near 93.1 billion USD in 2021. Thereafter, a gradual decline occurred, reducing the asset base to about 89.9 billion USD by 2024, followed by a mild recovery to approximately 91.7 billion USD in 2025. This pattern suggests some volatility but overall stability in reported asset levels over the period.

The adjusted total assets, which exclude goodwill, follow a somewhat similar but less volatile trajectory. Starting at around 50.8 billion USD in 2020, these assets showed a marginal increase to 51.1 billion USD in 2021 before gradually decreasing to roughly 49.0 billion USD by 2024. A slight increase to approximately 49.9 billion USD in 2025 rounds out this series. The narrower range of change indicates more stable underlying asset values when goodwill is excluded.

Return on Assets (ROA)

Reported ROA experienced fluctuations without a consistent directional trend. Beginning at 5.28% in 2020, it dropped significantly to 3.87% in 2021, then rebounded to 5.54% in 2022. This was followed by decreases in 2023 and 2024 to approximately 4.13% and 4.09%, respectively, and then an increase again to 5.09% in 2025. The variability suggests periodic changes in operational efficiency or profitability relative to total reported assets.

The adjusted ROA, calculated excluding goodwill, consistently remained higher than the reported ROA throughout the period. It started at 9.42% in 2020, decreased to 7.05% in 2021, then rose to a peak of 9.98% in 2022. Subsequently, it declined to around 7.5% in 2024 and increased again to 9.33% in 2025. The trend closely mirrors that of the reported ROA but at elevated levels, indicating that excluding goodwill reveals stronger underlying returns on the company’s tangible assets.

Overall, the data suggests a relatively stable asset base with moderate fluctuations. The difference between reported and adjusted figures highlights the impact of goodwill, which dampens the apparent return on assets. The adjusted ROA figures suggest the company’s core asset profitability is stronger than what reported numbers alone indicate, with recurring cyclical trends rather than a steady increase or decrease over the analyzed timeframe.