Medtronic PLC, adjustment to net income attributable to Medtronic

US$ in millions

12 months ended:	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Net income attributable to Medtronic (as reported)	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Add: Unrealized gain (loss) on investment securities	(49)	(301)	92)	45)	102)	(103)
Net income attributable to Medtronic (adjusted)	3,709)	4,738)	3,698)	4,834)	4,733)	3,001)

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Medtronic PLC, adjusted profitability ratios

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Net Profit Margin
Reported net profit margin	12.03%	15.90%	11.97%	16.56%	15.16%	10.36%
Adjusted net profit margin	11.88%	14.95%	12.28%	16.72%	15.49%	10.02%
Return on Equity (ROE)
Reported ROE	7.30%	9.59%	7.01%	9.44%	9.25%	6.12%
Adjusted ROE	7.20%	9.02%	7.19%	9.53%	9.45%	5.92%
Return on Assets (ROA)
Reported ROA	4.13%	5.54%	3.87%	5.28%	5.16%	3.40%
Adjusted ROA	4.08%	5.21%	3.97%	5.33%	5.28%	3.28%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Medtronic PLC adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Medtronic PLC adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Medtronic PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

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	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Profitability Ratio
Net profit margin¹	12.03%	15.90%	11.97%	16.56%	15.16%	10.36%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,709)	4,738)	3,698)	4,834)	4,733)	3,001)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Profitability Ratio
Adjusted net profit margin²	11.88%	14.95%	12.28%	16.72%	15.49%	10.02%

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Medtronic ÷ Net sales
= 100 × 3,758 ÷ 31,227 = 12.03%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Medtronic ÷ Net sales
= 100 × 3,709 ÷ 31,227 = 11.88%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Medtronic PLC adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Shareholders’ equity	51,483)	52,551)	51,428)	50,737)	50,091)	50,720)
Profitability Ratio
ROE¹	7.30%	9.59%	7.01%	9.44%	9.25%	6.12%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,709)	4,738)	3,698)	4,834)	4,733)	3,001)
Shareholders’ equity	51,483)	52,551)	51,428)	50,737)	50,091)	50,720)
Profitability Ratio
Adjusted ROE²	7.20%	9.02%	7.19%	9.53%	9.45%	5.92%

2023 Calculations

¹ ROE = 100 × Net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 3,758 ÷ 51,483 = 7.30%

² Adjusted ROE = 100 × Adjusted net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 3,709 ÷ 51,483 = 7.20%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Medtronic PLC adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Total assets	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Profitability Ratio
ROA¹	4.13%	5.54%	3.87%	5.28%	5.16%	3.40%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,709)	4,738)	3,698)	4,834)	4,733)	3,001)
Total assets	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Profitability Ratio
Adjusted ROA²	4.08%	5.21%	3.97%	5.33%	5.28%	3.28%

2023 Calculations

¹ ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 3,758 ÷ 90,948 = 4.13%

² Adjusted ROA = 100 × Adjusted net income attributable to Medtronic ÷ Total assets
= 100 × 3,709 ÷ 90,948 = 4.08%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Medtronic PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Medtronic PLC (NYSE:MDT)

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