Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Medtronic PLC, profitability ratios

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Return on Sales
Gross profit margin 65.67% 67.98% 65.19% 67.41% 70.04% 69.77%
Operating profit margin 17.56% 18.15% 14.89% 16.57% 20.51% 22.20%
Net profit margin 12.03% 15.90% 11.97% 16.56% 15.16% 10.36%
Return on Investment
Return on equity (ROE) 7.30% 9.59% 7.01% 9.44% 9.25% 6.12%
Return on assets (ROA) 4.13% 5.54% 3.87% 5.28% 5.16% 3.40%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Medtronic PLC gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Medtronic PLC operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Medtronic PLC net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

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

Gross Profit Margin

Medtronic PLC, gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Selected Financial Data (US$ in millions)
Gross profit 20,508 21,541 19,634 19,489 21,402 20,898
Net sales 31,227 31,686 30,117 28,913 30,557 29,953
Profitability Ratio
Gross profit margin1 65.67% 67.98% 65.19% 67.41% 70.04% 69.77%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 50.28% 51.54% 52.21% 50.49% 52.46%
Cigna Group 12.37% 12.44% 12.41% 14.43% 15.57%
CVS Health Corp. 14.94% 16.62% 17.48% 18.01% 17.41%
Elevance Health Inc. 16.79% 16.79% 17.09% 19.71% 18.77%
Intuitive Surgical Inc. 66.39% 67.44% 69.32% 65.65% 69.45%
UnitedHealth Group Inc. 23.64% 24.09% 23.60% 25.62% 23.19%

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 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 20,508 ÷ 31,227 = 65.67%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Medtronic PLC gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Operating Profit Margin

Medtronic PLC, operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Selected Financial Data (US$ in millions)
Operating profit 5,485 5,752 4,484 4,791 6,268 6,651
Net sales 31,227 31,686 30,117 28,913 30,557 29,953
Profitability Ratio
Operating profit margin1 17.56% 18.15% 14.89% 16.57% 20.51% 22.20%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 16.15% 19.16% 19.56% 15.48% 14.21%
Cigna Group 4.40% 4.69% 4.60% 5.12% 5.31%
CVS Health Corp. 3.85% 2.41% 4.54% 5.19% 4.69%
Elevance Health Inc. 4.47% 4.94% 5.15% 4.97% 5.49%
Humana Inc. 3.81% 4.11% 3.80% 6.56% 4.96%
Intuitive Surgical Inc. 24.80% 25.35% 31.89% 24.09% 30.69%
UnitedHealth Group Inc. 8.80% 8.83% 8.40% 8.76% 8.19%
Operating Profit Margin, Sector
Health Care Equipment & Services 6.29% 6.23% 6.69% 7.04% 6.89%
Operating Profit Margin, Industry
Health Care 9.14% 13.63% 13.88% 10.42% 12.41%

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 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 5,485 ÷ 31,227 = 17.56%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Medtronic PLC operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Net Profit Margin

Medtronic PLC, net profit margin calculation, comparison to benchmarks

Microsoft Excel
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 income attributable to Medtronic 3,758 5,039 3,606 4,789 4,631 3,104
Net sales 31,227 31,686 30,117 28,913 30,557 29,953
Profitability Ratio
Net profit margin1 12.03% 15.90% 11.97% 16.56% 15.16% 10.36%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 14.27% 15.88% 16.42% 12.99% 11.56%
Cigna Group 2.66% 3.72% 3.11% 5.31% 3.35%
CVS Health Corp. 2.34% 1.29% 2.72% 2.68% 2.59%
Elevance Health Inc. 3.52% 3.87% 4.46% 3.78% 4.66%
Humana Inc. 2.36% 3.03% 3.54% 4.43% 4.20%
Intuitive Surgical Inc. 25.24% 21.25% 29.85% 24.33% 30.80%
UnitedHealth Group Inc. 6.09% 6.25% 6.06% 6.03% 5.76%
Net Profit Margin, Sector
Health Care Equipment & Services 4.37% 4.60% 4.96% 5.21% 4.85%
Net Profit Margin, Industry
Health Care 7.74% 10.63% 11.55% 7.72% 10.16%

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 2023 Calculation
Net profit margin = 100 × Net income attributable to Medtronic ÷ Net sales
= 100 × 3,758 ÷ 31,227 = 12.03%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Medtronic PLC net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Return on Equity (ROE)

Medtronic PLC, ROE calculation, comparison to benchmarks

Microsoft Excel
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 income attributable to Medtronic 3,758 5,039 3,606 4,789 4,631 3,104
Shareholders’ equity 51,483 52,551 51,428 50,737 50,091 50,720
Profitability Ratio
ROE1 7.30% 9.59% 7.01% 9.44% 9.25% 6.12%
Benchmarks
ROE, Competitors2
Abbott Laboratories 14.83% 18.90% 19.75% 13.71% 11.86%
Cigna Group 11.17% 14.86% 11.39% 16.81% 11.26%
CVS Health Corp. 10.91% 5.84% 10.54% 10.35% 10.39%
Elevance Health Inc. 15.23% 16.59% 16.93% 13.77% 15.15%
Humana Inc. 15.31% 18.33% 18.24% 24.53% 22.49%
Intuitive Surgical Inc. 13.51% 11.98% 14.32% 10.90% 16.69%
UnitedHealth Group Inc. 25.22% 25.87% 24.09% 23.52% 24.02%
ROE, Sector
Health Care Equipment & Services 15.02% 15.36% 15.06% 15.16% 14.26%
ROE, Industry
Health Care 17.22% 23.02% 24.20% 15.98% 21.06%

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 2023 Calculation
ROE = 100 × Net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 3,758 ÷ 51,483 = 7.30%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Medtronic PLC ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Return on Assets (ROA)

Medtronic PLC, ROA calculation, comparison to benchmarks

Microsoft Excel
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 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%
Benchmarks
ROA, Competitors2
Abbott Laboratories 7.82% 9.31% 9.40% 6.20% 5.43%
Cigna Group 3.38% 4.63% 3.46% 5.44% 3.28%
CVS Health Corp. 3.34% 1.82% 3.39% 3.11% 2.98%
Elevance Health Inc. 5.50% 5.86% 6.26% 5.28% 6.21%
Humana Inc. 5.29% 6.52% 6.61% 9.63% 9.31%
Intuitive Surgical Inc. 11.64% 10.19% 12.58% 9.50% 14.17%
UnitedHealth Group Inc. 8.18% 8.19% 8.15% 7.81% 7.96%
ROA, Sector
Health Care Equipment & Services 5.50% 5.63% 5.63% 5.61% 5.18%
ROA, Industry
Health Care 6.15% 8.64% 8.73% 5.40% 7.18%

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 2023 Calculation
ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 3,758 ÷ 90,948 = 4.13%

2 Click competitor name to see calculations.

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