Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Medtronic PLC, ROIC calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,151) | 4,888) | 4,049) | 4,408) | 5,457) | 2,708) | |
| Invested capital2 | 70,505) | 69,629) | 72,405) | 71,146) | 72,690) | 70,880) | |
| Performance Ratio | |||||||
| ROIC3 | 5.89% | 7.02% | 5.59% | 6.20% | 7.51% | 3.82% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Abbott Laboratories | 8.87% | 10.96% | 11.30% | 8.01% | 6.47% | — | |
| Cigna Group | 5.63% | 8.53% | 6.88% | 9.84% | 6.50% | — | |
| CVS Health Corp. | 7.17% | 3.13% | 7.01% | 6.63% | 5.97% | — | |
| Elevance Health Inc. | 9.35% | 10.17% | 11.14% | 8.67% | 9.75% | — | |
| Humana Inc. | 9.02% | 10.50% | 10.35% | 17.73% | 16.04% | — | |
| Intuitive Surgical Inc. | 22.30% | 22.01% | 37.63% | 25.62% | 42.29% | — | |
| Shockwave Medical Inc. | 25.35% | 38.37% | -4.08% | -70.24% | -31.36% | — | |
| UnitedHealth Group Inc. | 14.59% | 13.68% | 13.51% | 13.84% | 13.91% | — | |
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 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 4,151 ÷ 70,505 = 5.89%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Medtronic PLC ROIC improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Decomposition of ROIC
Medtronic PLC, decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the increase in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
Medtronic PLC, OPM calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,151) | 4,888) | 4,049) | 4,408) | 5,457) | 2,708) | |
| Add: Cash operating taxes2 | 1,979) | 1,186) | 925) | 761) | 1,305) | 4,052) | |
| Net operating profit before taxes (NOPBT) | 6,130) | 6,074) | 4,974) | 5,168) | 6,762) | 6,760) | |
| Net sales | 31,227) | 31,686) | 30,117) | 28,913) | 30,557) | 29,953) | |
| Add: Increase (decrease) in deferred revenue | 6) | 31) | 65) | (12) | 26) | —) | |
| Adjusted net sales | 31,233) | 31,717) | 30,182) | 28,901) | 30,583) | 29,953) | |
| Profitability Ratio | |||||||
| OPM3 | 19.63% | 19.15% | 16.48% | 17.88% | 22.11% | 22.57% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Abbott Laboratories | 16.84% | 20.24% | 20.37% | 16.05% | 14.97% | — | |
| Cigna Group | 3.57% | 5.39% | 4.69% | 7.72% | 5.38% | — | |
| CVS Health Corp. | 3.82% | 2.45% | 4.32% | 4.79% | 4.69% | — | |
| Elevance Health Inc. | 5.39% | 5.61% | 6.54% | 6.03% | 6.47% | — | |
| Humana Inc. | 3.64% | 4.33% | 4.49% | 6.64% | 5.73% | — | |
| Intuitive Surgical Inc. | 28.14% | 26.19% | 33.56% | 28.14% | 34.15% | — | |
| Shockwave Medical Inc. | 25.29% | 25.51% | -2.64% | -93.91% | -115.00% | — | |
| UnitedHealth Group Inc. | 9.14% | 9.13% | 8.33% | 9.15% | 8.41% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 6,130 ÷ 31,233 = 19.63%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Medtronic PLC OPM improved from 2021 to 2022 and from 2022 to 2023. |
Turnover of Capital (TO)
Medtronic PLC, TO calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 31,227) | 31,686) | 30,117) | 28,913) | 30,557) | 29,953) | |
| Add: Increase (decrease) in deferred revenue | 6) | 31) | 65) | (12) | 26) | —) | |
| Adjusted net sales | 31,233) | 31,717) | 30,182) | 28,901) | 30,583) | 29,953) | |
| Invested capital1 | 70,505) | 69,629) | 72,405) | 71,146) | 72,690) | 70,880) | |
| Efficiency Ratio | |||||||
| TO2 | 0.44 | 0.46 | 0.42 | 0.41 | 0.42 | 0.42 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Abbott Laboratories | 0.67 | 0.71 | 0.69 | 0.57 | 0.55 | — | |
| Cigna Group | 2.26 | 2.09 | 1.90 | 1.70 | 1.62 | — | |
| CVS Health Corp. | 2.64 | 2.60 | 2.22 | 1.96 | 1.83 | — | |
| Elevance Health Inc. | 2.44 | 2.33 | 2.14 | 2.13 | 1.86 | — | |
| Humana Inc. | 3.48 | 3.18 | 2.70 | 3.48 | 3.41 | — | |
| Intuitive Surgical Inc. | 1.00 | 1.16 | 1.27 | 0.98 | 1.35 | — | |
| Shockwave Medical Inc. | 1.09 | 1.54 | 1.36 | 0.74 | 0.27 | — | |
| UnitedHealth Group Inc. | 2.01 | 1.95 | 2.04 | 1.96 | 2.05 | — | |
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 Invested capital. See details »
2 2023 Calculation
TO = Adjusted net sales ÷ Invested capital
= 31,233 ÷ 70,505 = 0.44
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Medtronic PLC TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Medtronic PLC, CTR calculation, comparison to benchmarks
| Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,151) | 4,888) | 4,049) | 4,408) | 5,457) | 2,708) | |
| Add: Cash operating taxes2 | 1,979) | 1,186) | 925) | 761) | 1,305) | 4,052) | |
| Net operating profit before taxes (NOPBT) | 6,130) | 6,074) | 4,974) | 5,168) | 6,762) | 6,760) | |
| Tax Rate | |||||||
| CTR3 | 32.28% | 19.53% | 18.59% | 14.72% | 19.30% | 59.94% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Abbott Laboratories | 21.67% | 23.97% | 20.05% | 12.92% | 21.15% | — | |
| Cigna Group | 30.27% | 24.44% | 23.01% | 24.93% | 25.68% | — | |
| CVS Health Corp. | 29.07% | 50.90% | 27.09% | 29.36% | 30.33% | — | |
| Elevance Health Inc. | 28.75% | 22.11% | 20.37% | 32.42% | 18.95% | — | |
| Humana Inc. | 28.91% | 23.74% | 14.62% | 23.28% | 17.80% | — | |
| Intuitive Surgical Inc. | 20.94% | 27.40% | 11.76% | 6.67% | 8.23% | — | |
| Shockwave Medical Inc. | 7.67% | 2.32% | — | — | — | — | |
| UnitedHealth Group Inc. | 20.64% | 23.25% | 20.32% | 22.88% | 19.29% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,979 ÷ 6,130 = 32.28%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Medtronic PLC CTR increased from 2021 to 2022 and from 2022 to 2023. |