Medtronic PLC (NYSE:MDT)

Market (fair) value

The market (fair) value exhibited notable volatility over the observed years. It peaked at 190,499 million US dollars on April 30, 2021, before undergoing a significant decline to 134,940 million by April 29, 2022. Following this drop, the value decreased further to 119,653 million by April 26, 2024, though a moderate recovery to 131,485 million is evident in the most recent data as of April 25, 2025. Overall, the market value demonstrates a decreasing trend from the 2021 peak, highlighting periods of market fluctuation.

Invested capital

The invested capital has remained relatively stable over the years, fluctuating within a narrow range between approximately 68,670 million and 72,405 million US dollars. Despite minor variations year to year, the capital base shows consistency without significant growth or contraction. This stability suggests a steady allocation of resources in the company's investments.

Market value added (MVA)

The MVA, representing the premium of market value over invested capital, reached its highest level of 118,094 million US dollars in April 2021, corresponding to the peak market value. Subsequently, MVA substantially declined to 50,983 million by April 26, 2024, indicating erosion in market-based shareholder wealth relative to invested capital. The last available figure for April 25, 2025 shows a partial rebound to 61,120 million, yet it remains materially below previous highs. This trend suggests fluctuating market confidence and valuation relative to capital invested.

The financial data reflects several important trends regarding the company's capital efficiency and market value creation over a six-year period.

Market Value Added (MVA)

The Market Value Added demonstrates a notable increase from 76,584 million USD in 2020 to a peak of 118,094 million USD in 2021. However, from 2021 onwards, there is a clear downward trend reaching a low of 50,983 million USD in 2024, followed by a moderate recovery to 61,120 million USD in 2025. This fluctuation suggests varying market perceptions of the company's value creation capabilities over the years, with a strong peak in 2021 and subsequent investor confidence decreasing before stabilizing somewhat in the final year reported.

Invested Capital

Invested capital has remained relatively stable throughout the period, ranging narrowly between approximately 68,670 million USD and 72,405 million USD. There are no drastic increases or decreases, indicating consistent levels of financial resources committed to the company's operations and projects. Slight decreases are observable around 2024, but the capital deployed rebounds slightly by 2025.

MVA Spread Ratio

The MVA spread ratio, which measures the market value added as a percentage of invested capital, mirrors the movements in the absolute MVA values. It peaked strongly at 163.1% in 2021, indicating exceptional value creation relative to capital invested in that year. Afterward, the ratio declines steadily to a low of 74.24% in 2024, suggesting diminished returns on capital from the market's standpoint. The ratio shows some recovery in 2025 to 86.86%, implying modest improvement in value creation efficiency.

In summary, the data reveals that while the invested capital base stayed largely consistent, the company's ability to generate market value fluctuated significantly. A high point occurred in 2021, after which both market value added and the associated spread ratio diminished substantially before a partial rebound in the latest year. This pattern indicates periods of strong investor confidence followed by challenges in maintaining that level of value creation, highlighting potential areas for strategic assessment to improve market perception and capital utilization going forward.

Market Value Added (MVA)

The market value added experienced notable fluctuations over the six-year period. It peaked at 118,094 million US dollars in April 2021, followed by a sharp decline to 65,311 million US dollars in April 2022. The downward trend continued with values decreasing further to 50,983 million US dollars by April 2024. The latest figure for April 2025 shows a moderate recovery to 61,120 million US dollars, although it remains considerably below the 2021 peak.

Adjusted Net Sales

Adjusted net sales demonstrated a consistent upward trend throughout the period. Starting from 28,901 million US dollars in April 2020, the amount increased steadily each year, reaching 33,530 million US dollars by April 2025. This gradual growth reflects a stable expansion in sales over time, despite the volatilities observed in other metrics.

MVA Margin %

The MVA margin exhibited significant variability. It was exceptionally high at 391.27% in April 2021, coinciding with the peak market value added. Subsequently, the margin declined sharply to 205.92% in April 2022, and further decreased to 157.3% in April 2024. The margin then rebounded slightly to 182.29% by April 2025. Overall, the MVA margin shows a pattern of peak followed by decline and partial recovery, consistent with trends in market value added.