Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Medtronic PLC, profitability ratios
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
| 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% | — | |
| Shockwave Medical Inc. | 86.94% | 86.73% | 82.53% | 69.03% | 60.03% | — | |
| 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
| 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% | — | |
| Shockwave Medical Inc. | 21.79% | 25.35% | -0.37% | -96.86% | -120.76% | — | |
| UnitedHealth Group Inc. | 8.80% | 8.83% | 8.40% | 8.76% | 8.19% | — | |
| Operating Profit Margin, Sector | |||||||
| Health Care Equipment & Services | 6.30% | 6.23% | 6.68% | 7.03% | 6.88% | — | |
| Operating Profit Margin, Industry | |||||||
| Health Care | 9.42% | 13.22% | 13.18% | 10.47% | 12.44% | — | |
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
| 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% | — | |
| Shockwave Medical Inc. | 20.17% | 44.10% | -3.85% | -96.92% | -119.06% | — | |
| UnitedHealth Group Inc. | 6.09% | 6.25% | 6.06% | 6.03% | 5.76% | — | |
| Net Profit Margin, Sector | |||||||
| Health Care Equipment & Services | 4.38% | 4.62% | 4.96% | 5.20% | 4.84% | — | |
| Net Profit Margin, Industry | |||||||
| Health Care | 8.05% | 10.26% | 10.89% | 7.77% | 10.20% | — | |
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
| 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% | — | |
| Shockwave Medical Inc. | 22.03% | 42.24% | -3.78% | -29.11% | -26.53% | — | |
| UnitedHealth Group Inc. | 25.22% | 25.87% | 24.09% | 23.52% | 24.02% | — | |
| ROE, Sector | |||||||
| Health Care Equipment & Services | 15.04% | 15.40% | 15.04% | 15.13% | 14.24% | — | |
| ROE, Industry | |||||||
| Health Care | 18.14% | 22.52% | 23.00% | 16.14% | 21.17% | — | |
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
| 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% | — | |
| Shockwave Medical Inc. | 9.40% | 33.43% | -2.64% | -24.15% | -22.04% | — | |
| UnitedHealth Group Inc. | 8.18% | 8.19% | 8.15% | 7.81% | 7.96% | — | |
| ROA, Sector | |||||||
| Health Care Equipment & Services | 5.51% | 5.65% | 5.62% | 5.60% | 5.17% | — | |
| ROA, Industry | |||||||
| Health Care | 6.42% | 8.35% | 8.24% | 5.46% | 7.22% | — | |
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. |