Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Operating Leases

Microsoft Excel

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

Medtronic PLC, adjustments to financial statements

US$ in millions

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Adjustment to Total Assets
Total assets (as reported) 90,948 90,981 93,083 90,689 89,694 91,393
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — 553 671
Total assets (adjusted) 90,948 90,981 93,083 90,689 90,247 92,064
Adjustment to Total Debt
Total debt (as reported) 24,364 24,114 26,389 24,797 25,324 25,757
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — 553 671
Add: Operating lease current liability (classified in Other accrued expenses) 180 167 186 171 — —
Add: Operating lease non-current liability (classified in Other liabilities) 869 703 829 774 — —
Total debt (adjusted) 25,413 24,984 27,404 25,742 25,877 26,428

Based on: 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), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Medtronic PLC, adjusted financial ratios

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Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Total Asset Turnover1
Reported total asset turnover 0.34 0.35 0.32 0.32 0.34 0.33
Adjusted total asset turnover 0.34 0.35 0.32 0.32 0.34 0.33
Debt to Equity2
Reported debt to equity 0.47 0.46 0.51 0.49 0.51 0.51
Adjusted debt to equity 0.49 0.48 0.53 0.51 0.52 0.52
Return on Assets3 (ROA)
Reported ROA 4.13% 5.54% 3.87% 5.28% 5.16% 3.40%
Adjusted ROA 4.13% 5.54% 3.87% 5.28% 5.13% 3.37%

Based on: 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), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Medtronic PLC adjusted debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted 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, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
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 sales 31,227 31,686 30,117 28,913 30,557 29,953
Total assets 90,948 90,981 93,083 90,689 89,694 91,393
Activity Ratio
Total asset turnover1 0.34 0.35 0.32 0.32 0.34 0.33
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 31,227 31,686 30,117 28,913 30,557 29,953
Adjusted total assets 90,948 90,981 93,083 90,689 90,247 92,064
Activity Ratio
Adjusted total asset turnover2 0.34 0.35 0.32 0.32 0.34 0.33

Based on: 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), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 31,227 ÷ 90,948 = 0.34

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 31,227 ÷ 90,948 = 0.34

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 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
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)
Total debt 24,364 24,114 26,389 24,797 25,324 25,757
Shareholders’ equity 51,483 52,551 51,428 50,737 50,091 50,720
Solvency Ratio
Debt to equity1 0.47 0.46 0.51 0.49 0.51 0.51
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 25,413 24,984 27,404 25,742 25,877 26,428
Shareholders’ equity 51,483 52,551 51,428 50,737 50,091 50,720
Solvency Ratio
Adjusted debt to equity2 0.49 0.48 0.53 0.51 0.52 0.52

Based on: 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), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 24,364 ÷ 51,483 = 0.47

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 25,413 ÷ 51,483 = 0.49

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
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 for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 3,758 5,039 3,606 4,789 4,631 3,104
Adjusted total assets 90,948 90,981 93,083 90,689 90,247 92,064
Profitability Ratio
Adjusted ROA2 4.13% 5.54% 3.87% 5.28% 5.13% 3.37%

Based on: 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), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

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

2 Adjusted ROA = 100 × Net income attributable to Medtronic ÷ Adjusted total assets
= 100 × 3,758 ÷ 90,948 = 4.13%

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