Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Medtronic PLC (NYSE:MDT)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Medtronic PLC, adjustment to net income attributable to Medtronic

US$ in millions

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12 months ended: Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Net income attributable to Medtronic (as reported) 4,789  4,631  3,104  4,028  3,538  2,675 
Add: Unrealized gain (loss) on investment securities 45  102  (103) 38  (121) 20 
Net income attributable to Medtronic (adjusted) 4,834  4,733  3,001  4,066  3,417  2,695 

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Medtronic PLC, adjusted profitability ratios

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Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Net Profit Margin
Reported net profit margin 16.56% 15.16% 10.36% 13.56% 12.27% 13.20%
Adjusted net profit margin 16.72% 15.49% 10.02% 13.69% 11.85% 13.30%
Return on Equity (ROE)
Reported ROE 9.44% 9.25% 6.12% 8.01% 6.80% 5.03%
Adjusted ROE 9.53% 9.45% 5.92% 8.08% 6.56% 5.06%
Return on Assets (ROA)
Reported ROA 5.28% 5.16% 3.40% 4.04% 3.55% 2.51%
Adjusted ROA 5.33% 5.28% 3.28% 4.07% 3.42% 2.53%

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Medtronic PLC’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Medtronic PLC’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Medtronic PLC’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.

Medtronic PLC, Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 4,789  4,631  3,104  4,028  3,538  2,675 
Net sales 28,913  30,557  29,953  29,710  28,833  20,261 
Profitability Ratio
Net profit margin1 16.56% 15.16% 10.36% 13.56% 12.27% 13.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic 4,834  4,733  3,001  4,066  3,417  2,695 
Net sales 28,913  30,557  29,953  29,710  28,833  20,261 
Profitability Ratio
Adjusted net profit margin2 16.72% 15.49% 10.02% 13.69% 11.85% 13.30%

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

2020 Calculations

1 Net profit margin = 100 × Net income attributable to Medtronic ÷ Net sales
= 100 × 4,789 ÷ 28,913 = 16.56%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Medtronic ÷ Net sales
= 100 × 4,834 ÷ 28,913 = 16.72%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Medtronic PLC’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

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Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 4,789  4,631  3,104  4,028  3,538  2,675 
Shareholders’ equity 50,737  50,091  50,720  50,294  52,063  53,230 
Profitability Ratio
ROE1 9.44% 9.25% 6.12% 8.01% 6.80% 5.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic 4,834  4,733  3,001  4,066  3,417  2,695 
Shareholders’ equity 50,737  50,091  50,720  50,294  52,063  53,230 
Profitability Ratio
Adjusted ROE2 9.53% 9.45% 5.92% 8.08% 6.56% 5.06%

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

2020 Calculations

1 ROE = 100 × Net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 4,789 ÷ 50,737 = 9.44%

2 Adjusted ROE = 100 × Adjusted net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 4,834 ÷ 50,737 = 9.53%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Medtronic PLC’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

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Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 4,789  4,631  3,104  4,028  3,538  2,675 
Total assets 90,689  89,694  91,393  99,816  99,782  106,685 
Profitability Ratio
ROA1 5.28% 5.16% 3.40% 4.04% 3.55% 2.51%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic 4,834  4,733  3,001  4,066  3,417  2,695 
Total assets 90,689  89,694  91,393  99,816  99,782  106,685 
Profitability Ratio
Adjusted ROA2 5.33% 5.28% 3.28% 4.07% 3.42% 2.53%

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

2020 Calculations

1 ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 4,789 ÷ 90,689 = 5.28%

2 Adjusted ROA = 100 × Adjusted net income attributable to Medtronic ÷ Total assets
= 100 × 4,834 ÷ 90,689 = 5.33%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Medtronic PLC’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.