Medtronic PLC (NYSE:MDT)

Gross Profit Margin

The gross profit margin remained relatively stable over the analyzed periods, fluctuating between approximately 65.19% and 67.98%. A slight decline was observed after the peak in 2022, but the margin consistently stayed above 65%, indicating steady production efficiency and stable cost management relative to revenue.

Operating Profit Margin

The operating profit margin exhibited some volatility, beginning at 16.57% in 2020, dipping to 14.89% in 2021, and then reaching a peak at 18.15% in 2022. This was followed by a decrease to 15.89% in 2024 before improving to 17.76% in 2025. The pattern suggests fluctuating operating expenses or variable operational efficiency impacting profitability before interest and taxes, with a recovery trend in the latest period.

Net Profit Margin

The net profit margin showed a more pronounced downward trend from 16.56% in 2020 to 11.36% in 2024, with some recovery to 13.9% in 2025. This indicates that while the company faced pressures on its bottom-line profitability, potentially from higher non-operating costs, taxes, or other factors, recent improvements suggest better overall cost management or financial performance.

Return on Equity (ROE)

The ROE mirrored the net profit margin's trend, dropping from 9.44% in 2020 to a low near 7.01-7.32% during the 2021 to 2024 period, then rising sharply to 9.71% by 2025. This reflects changes in the company's ability to generate profit from shareholders’ equity, aligned with net margin trends, indicating fluctuations in profitability and efficiency in utilizing equity capital.

Return on Assets (ROA)

The ROA followed a comparable pattern to ROE, decreasing from 5.28% in 2020 to around 4.09% in 2024, then increasing to 5.09% in 2025. This suggests similar variability in asset utilization efficiency, affected by the company's operational performance and asset management capabilities. The recent increase implies enhanced asset productivity or improved profit generation relative to total assets.

Net Sales

The net sales demonstrated a generally upward trend over the observed periods, increasing from $28,913 million in April 2020 to $33,537 million in April 2025. There was a slight dip between April 2022 and April 2023, where sales decreased from $31,686 million to $31,227 million, before resuming growth thereafter.

Gross Profit

Gross profit values correspond closely with the trend in net sales, rising from $19,489 million in April 2020 to $21,905 million in April 2025. A decline occurred in April 2023 from the previous year, dropping to $20,508 million from $21,541 million, mirroring the downturn in net sales during the same period. Subsequently, gross profit recovered and continued to grow.

Gross Profit Margin

The gross profit margin showed some fluctuations but remained relatively stable around the mid-60% range. It started at 67.41% in April 2020, decreased to its lowest point of 65.19% in April 2021, then peaked again at 67.98% in April 2022. Following this peak, it declined slightly and stabilized around 65.3% from April 2023 to April 2025. This suggests moderate variability in profitability relative to sales over time, with no significant trend of expansion or contraction in margins.

Summary

Overall, the financial data show consistent revenue growth accompanied by corresponding increases in gross profit over the longer term, despite a temporary setback in fiscal year 2023. The gross profit margin remained stable, indicating consistent cost management relative to revenue. The brief downturn in 2023 requires attention but recovery in subsequent years suggests resilience in financial performance.

Net Sales

Net sales steadily increased over the six-year period, rising from 28,913 million US dollars in April 2020 to 33,537 million US dollars in April 2025. This represents a consistent growth trend, with a slight deceleration in the growth rate between April 2022 and April 2023, followed by a rebound in subsequent years.

Operating Profit

Operating profit exhibited fluctuations during the period. It decreased from 4,791 million US dollars in April 2020 to 4,484 million US dollars in April 2021, then increased significantly to reach 5,752 million in April 2022. After a minor dip in April 2023 and April 2024, operating profit rose sharply to 5,955 million US dollars by April 2025. Despite some volatility, the overall trend reflects growth with some periods of contraction.

Operating Profit Margin

The operating profit margin showed considerable variability. It decreased from 16.57% in April 2020 to a low of 14.89% in April 2021. By April 2022, the margin improved significantly to 18.15%, indicating enhanced profitability efficiency. The margin slightly declined to 17.56% in April 2023 and further to 15.89% in April 2024, followed by an increase to 17.76% in April 2025. This suggests fluctuations in cost management or pricing power affecting profitability margins.

Overall Analysis

The data reveals a general upward trajectory in net sales, supporting growth in operating profit despite periodic declines. The operating profit margin's variability implies that while sales increased steadily, profitability efficiency was subject to external or internal pressures, impacting cost structure or revenue quality in the mid-period years. The recovery of both operating profit and margin in the final year suggests improved operational performance or favorable market conditions toward the end of the examined timeframe.

The financial data over the examined periods displays fluctuations in key performance indicators including net income, net sales, and net profit margin.

Net Income

The net income attributable shows notable volatility. It declined significantly from 4,789 million US dollars in 2020 to 3,606 million in 2021, followed by a recovery to 5,039 million in 2022. The figure dipped again in 2023 to 3,758 million and remained close at 3,676 million in 2024, before rebounding to 4,662 million in 2025. This pattern suggests cycles of profitability challenges and recoveries over the six-year span.

Net Sales

Net sales exhibit a generally upward trend across all periods, rising steadily from 28,913 million US dollars in 2020 to 33,537 million in 2025. Despite minor fluctuations, the trajectory indicates consistent growth in sales revenue, reflecting underlying business expansion or increased market demand.

Net Profit Margin

The net profit margin follows a similar volatility pattern to net income. Starting at 16.56% in 2020, it dropped to 11.97% in 2021, then increased to 15.9% in 2022. Afterwards, it decreased to 12.03% in 2023 and further to 11.36% in 2024, before partially recovering to 13.9% in 2025. These shifts indicate variable profitability relative to sales, influenced by costs, pricing strategies, or other operational factors.

In summary, while sales have shown steady growth, profitability metrics such as net income and profit margin have experienced pronounced fluctuations, reflecting periods of both financial strain and recovery within the business cycle covered. The patterns suggest the need for strategic focus on stabilizing profit margins and sustaining income growth alongside expanding sales volume.

Net Income Attributable to Medtronic

The net income demonstrates notable variability across the observed periods. Starting at 4,789 million US dollars in April 2020, it declined significantly to 3,606 million in April 2021. It then rebounded to 5,039 million in April 2022, followed by another decrease to 3,758 million in April 2023 and a slight further decrease to 3,676 million in April 2024. The most recent data point for April 2025 shows an increase to 4,662 million. Overall, this indicates a pattern of fluctuations rather than a consistent growth or decline trend.

Shareholders’ Equity

The shareholders’ equity remained relatively stable, with a gradual decline over the years. It began at 50,737 million US dollars in April 2020 and slightly increased to 51,428 million in April 2021 and further to 52,551 million in April 2022. After this peak, equity declined to 51,483 million in April 2023 and continued its downward trend to 50,214 million in April 2024, dropping further to 48,024 million in April 2025. This trend suggests a slow erosion of equity over the period, possibly due to factors like dividends, share buybacks, or losses retained from net income fluctuations.

Return on Equity (ROE)

The ROE percentages correspond with the net income fluctuations and equity levels. The initial ROE was 9.44% in April 2020, which decreased to 7.01% in April 2021. It then increased to 9.59% in April 2022 before dropping again to 7.3% in April 2023 and slightly remaining stable at 7.32% in April 2024. The ratio rose to 9.71% in April 2025. This cyclical pattern mirrors the earnings volatility and indicates periods of varying profitability relative to shareholders’ equity. The rise in ROE in the most recent period suggests improved efficiency in generating profit from equity.

The analysis of the annual financial data reveals several notable trends in key performance metrics.

Net Income Attributable to Medtronic

The net income exhibited considerable fluctuations over the observed periods. It decreased from US$4,789 million in 2020 to US$3,606 million in 2021, representing a significant decline. This was followed by a recovery to US$5,039 million in 2022, marking the highest value in the given data. Subsequently, net income fell again in the next two years, reaching US$3,676 million in 2024, before rebounding to US$4,662 million in 2025. Overall, net income shows a cyclical pattern with volatility but remains within a relatively consistent range.

Total Assets

Total assets have remained relatively stable throughout the periods, with values hovering around the US$90 billion mark. The figure saw a slight increase from US$90,689 million in 2020 to US$93,083 million in 2021, followed by a gradual decline and stabilization near US$90 billion in the following years. The data suggests that the company maintained a steady asset base without significant expansion or contraction over the analyzed timeline.

Return on Assets (ROA)

The ROA percentage demonstrates variability corresponding with the fluctuations in net income. It decreased from 5.28% in 2020 to 3.87% in 2021, aligning with the drop in net income despite the increase in total assets. ROA peaked at 5.54% in 2022, the highest in the dataset, then declined to a low of 4.09% in 2024 before improving again to 5.09% in 2025. This trend indicates that profitability relative to the asset base has been somewhat volatile but generally recovered towards the later period.

In summary, profitability metrics (net income and ROA) have experienced notable ups and downs across the years, reflecting varying operational performance and efficiency in asset utilization. Meanwhile, the total assets remained fairly consistent, suggesting that changes in profitability were not driven by significant shifts in asset size but rather by operational factors or market conditions impacting net income and returns.