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

Medtronic PLC (NYSE:MDT)

Analysis of Property, Plant and Equipment

Advanced level


Property, Plant and Equipment Disclosure

Medtronic PLC, balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Equipment 5,859  5,519  5,171  6,435  6,328  5,649 
Computer software 2,131  1,842  1,578  —  —  — 
Land and land improvements 175  181  187  186  215  217 
Buildings and leasehold improvements 2,277  2,267  2,265  2,175  2,394  2,314 
Construction in progress 1,202  1,111  1,058  895  777  683 
Property, plant, and equipment, at cost 11,644  10,920  10,259  9,691  9,714  8,863 
Accumulated depreciation (6,816) (6,245) (5,655) (5,330) (4,873) (4,164)
Property, plant, and equipment, net 4,828  4,675  4,604  4,361  4,841  4,699 

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).

Item Description The company
Property, plant, and equipment, at cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Medtronic PLC’s property, plant, and equipment, at cost increased from 2018 to 2019 and from 2019 to 2020.
Property, plant, and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Medtronic PLC’s property, plant, and equipment, net increased from 2018 to 2019 and from 2019 to 2020.

Asset Age Ratios (Summary)

Medtronic PLC, asset age ratios

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Average age ratio 59.43% 58.15% 56.15% 56.08% 51.30% 48.16%
Estimated total useful life (years) 13 12 12 10 11 15
Estimated age, time elapsed since purchase (years) 8 7 7 6 5 7
Estimated remaining life (years) 5 5 5 4 5 8

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Medtronic PLC’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Medtronic PLC’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Medtronic PLC’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated remaining life Medtronic PLC’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Average Age

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 6,816  6,245  5,655  5,330  4,873  4,164 
Property, plant, and equipment, at cost 11,644  10,920  10,259  9,691  9,714  8,863 
Land and land improvements 175  181  187  186  215  217 
Asset Age Ratio
Average age1 59.43% 58.15% 56.15% 56.08% 51.30% 48.16%

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 Average age = 100 × Accumulated depreciation ÷ (Property, plant, and equipment, at cost – Land and land improvements)
= 100 × 6,816 ÷ (11,644175) = 59.43%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Medtronic PLC’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Property, plant, and equipment, at cost 11,644  10,920  10,259  9,691  9,714  8,863 
Land and land improvements 175  181  187  186  215  217 
Depreciation expense 907  895  821  937  889  573 
Asset Age Ratio (Years)
Estimated total useful life1 13 12 12 10 11 15

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 Estimated total useful life = (Property, plant, and equipment, at cost – Land and land improvements) ÷ Depreciation expense
= (11,644175) ÷ 907 = 13

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Medtronic PLC’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 6,816  6,245  5,655  5,330  4,873  4,164 
Depreciation expense 907  895  821  937  889  573 
Asset Age Ratio (Years)
Time elapsed since purchase1 8 7 7 6 5 7

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 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 6,816 ÷ 907 = 8

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Medtronic PLC’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Property, plant, and equipment, net 4,828  4,675  4,604  4,361  4,841  4,699 
Land and land improvements 175  181  187  186  215  217 
Depreciation expense 907  895  821  937  889  573 
Asset Age Ratio (Years)
Estimated remaining life1 5 5 5 4 5 8

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 Estimated remaining life = (Property, plant, and equipment, net – Land and land improvements) ÷ Depreciation expense
= (4,828175) ÷ 907 = 5

Asset age ratio Description The company
Estimated remaining life Medtronic PLC’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.