An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Medtronic PLC, adjustments to financial statements

US$ in millions

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Adjustment to Total Assets
Total assets (as reported)	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	—)
Total assets (adjusted)	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Adjustment to Total Debt
Total debt (as reported)	28,516)	25,024)	24,364)	24,114)	26,389)	24,797)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)	—)
Add: Operating lease current liability (classified in Other accrued expenses)	192)	183)	180)	167)	186)	171)
Add: Operating lease non-current liability (classified in Other liabilities)	918)	840)	869)	703)	829)	774)
Total debt (adjusted)	29,626)	26,047)	25,413)	24,984)	27,404)	25,742)

Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 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).

^{1, 2} Equal to total present value of future operating lease payments.

Medtronic PLC, Financial Data: Reported vs. Adjusted

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Medtronic PLC, adjusted financial ratios

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Total Asset Turnover¹
Reported total asset turnover	0.37	0.36	0.34	0.35	0.32	0.32
Adjusted total asset turnover	0.37	0.36	0.34	0.35	0.32	0.32
Debt to Equity²
Reported debt to equity	0.59	0.50	0.47	0.46	0.51	0.49
Adjusted debt to equity	0.62	0.52	0.49	0.48	0.53	0.51
Return on Assets³ (ROA)
Reported ROA	5.09%	4.09%	4.13%	5.54%	3.87%	5.28%
Adjusted ROA	5.09%	4.09%	4.13%	5.54%	3.87%	5.28%

Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 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).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio improved from 2023 to 2024 and from 2024 to 2025.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Medtronic PLC adjusted debt to equity ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Medtronic PLC adjusted ROA deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

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	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	33,537)	32,364)	31,227)	31,686)	30,117)	28,913)
Total assets	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Activity Ratio
Total asset turnover¹	0.37	0.36	0.34	0.35	0.32	0.32
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales	33,537)	32,364)	31,227)	31,686)	30,117)	28,913)
Adjusted total assets	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Activity Ratio
Adjusted total asset turnover²	0.37	0.36	0.34	0.35	0.32	0.32

Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 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).

2025 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 33,537 ÷ 91,680 = 0.37

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 33,537 ÷ 91,680 = 0.37

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio improved from 2023 to 2024 and from 2024 to 2025.

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt	28,516)	25,024)	24,364)	24,114)	26,389)	24,797)
Shareholders’ equity	48,024)	50,214)	51,483)	52,551)	51,428)	50,737)
Solvency Ratio
Debt to equity¹	0.59	0.50	0.47	0.46	0.51	0.49
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	29,626)	26,047)	25,413)	24,984)	27,404)	25,742)
Shareholders’ equity	48,024)	50,214)	51,483)	52,551)	51,428)	50,737)
Solvency Ratio
Adjusted debt to equity²	0.62	0.52	0.49	0.48	0.53	0.51

Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 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).

2025 Calculations

¹ Debt to equity = Total debt ÷ Shareholders’ equity
= 28,516 ÷ 48,024 = 0.59

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 29,626 ÷ 48,024 = 0.62

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Medtronic PLC adjusted debt-to-equity ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	4,662)	3,676)	3,758)	5,039)	3,606)	4,789)
Total assets	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Profitability Ratio
ROA¹	5.09%	4.09%	4.13%	5.54%	3.87%	5.28%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	4,662)	3,676)	3,758)	5,039)	3,606)	4,789)
Adjusted total assets	91,680)	89,981)	90,948)	90,981)	93,083)	90,689)
Profitability Ratio
Adjusted ROA²	5.09%	4.09%	4.13%	5.54%	3.87%	5.28%

Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 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).

2025 Calculations

¹ ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 4,662 ÷ 91,680 = 5.09%

² Adjusted ROA = 100 × Net income attributable to Medtronic ÷ Adjusted total assets
= 100 × 4,662 ÷ 91,680 = 5.09%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Medtronic PLC adjusted ROA deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Medtronic PLC (NYSE:MDT)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)