Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Medtronic PLC (NYSE:MDT)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Medtronic PLC, short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Turnover Ratios
Inventory turnover 2.23 2.44 2.53 2.78 2.63 1.82
Receivables turnover 6.22 4.91 5.00 5.31 5.18 3.96
Payables turnover 4.72 4.69 5.56 5.37 5.35 3.92
Working capital turnover 2.48 2.26 2.32 2.79 1.75 0.93
Average No. Days
Average inventory processing period 164 150 144 131 139 200
Add: Average receivable collection period 59 74 73 69 70 92
Operating cycle 223 224 217 200 209 292
Less: Average payables payment period 77 78 66 68 68 93
Cash conversion cycle 146 146 151 132 141 199

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Medtronic PLC’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Medtronic PLC’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Medtronic PLC’s payables turnover ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Medtronic PLC’s working capital turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Medtronic PLC’s number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Medtronic PLC’s number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Medtronic PLC’s operating cycle deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Medtronic PLC’s number of days of payables outstanding increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Medtronic PLC, inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 9,424  9,155  9,055  9,291  9,142  6,309 
Inventories, net 4,229  3,753  3,579  3,338  3,473  3,463 
Short-term Activity Ratio
Inventory turnover1 2.23 2.44 2.53 2.78 2.63 1.82
Benchmarks
Inventory Turnover, Competitors2
Becton, Dickinson & Co. 3.49 3.56 3.38 3.78 2.85
Boston Scientific Corp. 1.97 2.41 2.41 2.54 2.14
Danaher Corp. 4.87 4.60 4.42 4.42 4.68
Edwards Lifesciences Corp. 1.74 1.55 1.58 2.01 1.82
Intuitive Surgical Inc. 2.30 2.74 3.88 4.47 4.80
Stryker Corp. 1.58 1.58 1.73 1.89 2.04
Thermo Fisher Scientific Inc. 4.22 4.49 3.86 4.48 4.62
Inventory Turnover, Sector
Health Care Equipment & Services 13.52 13.80 13.83 14.39 12.46
Inventory Turnover, Industry
Health Care 5.33 5.73 5.44 5.51 4.84

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Inventory turnover = Cost of products sold ÷ Inventories, net
= 9,424 ÷ 4,229 = 2.23

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Medtronic PLC’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Medtronic PLC, receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Net sales 28,913  30,557  29,953  29,710  28,833  20,261 
Accounts receivable, less allowances 4,645  6,222  5,987  5,591  5,562  5,112 
Short-term Activity Ratio
Receivables turnover1 6.22 4.91 5.00 5.31 5.18 3.96
Benchmarks
Receivables Turnover, Competitors2
Becton, Dickinson & Co. 7.37 6.89 6.93 7.72 6.35
Boston Scientific Corp. 5.87 6.11 5.84 5.70 5.86
Danaher Corp. 5.61 5.70 5.20 5.30 5.19
Edwards Lifesciences Corp. 8.00 8.15 8.15 8.11 7.91
Intuitive Surgical Inc. 6.94 5.46 6.11 6.29 6.05
Stryker Corp. 5.14 5.83 5.66 5.76 5.98
Thermo Fisher Scientific Inc. 5.87 5.89 5.39 5.99 6.67
UnitedHealth Group Inc. 20.32 19.75 20.92 22.57 23.98
Receivables Turnover, Sector
Health Care Equipment & Services 10.82 10.68 10.67 11.08 10.54
Receivables Turnover, Industry
Health Care 7.37 7.45 7.29 7.57 7.30

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances
= 28,913 ÷ 4,645 = 6.22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Medtronic PLC’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Payables Turnover

Medtronic PLC, payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 9,424  9,155  9,055  9,291  9,142  6,309 
Accounts payable 1,996  1,953  1,628  1,731  1,709  1,610 
Short-term Activity Ratio
Payables turnover1 4.72 4.69 5.56 5.37 5.35 3.92
Benchmarks
Payables Turnover, Competitors2
Becton, Dickinson & Co. 8.24 7.89 7.72 9.76 8.85
Boston Scientific Corp. 5.75 8.06 4.89 5.42 10.40
Danaher Corp. 5.23 5.13 5.39 5.08 4.78
Edwards Lifesciences Corp. 6.18 7.01 7.51 8.21 9.66
Intuitive Surgical Inc. 11.08 11.12 11.33 11.89 15.33
Stryker Corp. 7.69 7.22 8.77 8.76 8.16
Thermo Fisher Scientific Inc. 7.40 8.36 8.03 10.69 11.20
UnitedHealth Group Inc. 8.51 8.67 8.63 8.63 8.38
Payables Turnover, Sector
Health Care Equipment & Services 7.94 8.17 8.06 8.21 7.83
Payables Turnover, Industry
Health Care 5.76 5.98 5.79 5.95 5.73

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Payables turnover = Cost of products sold ÷ Accounts payable
= 9,424 ÷ 1,996 = 4.72

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Medtronic PLC’s payables turnover ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Working Capital Turnover

Medtronic PLC, working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data (US$ in millions)
Current assets 22,031  21,967  22,980  24,873  23,600  30,844 
Less: Current liabilities 10,366  8,472  10,084  14,220  7,165  9,173 
Working capital 11,665  13,495  12,896  10,653  16,435  21,671 
 
Net sales 28,913  30,557  29,953  29,710  28,833  20,261 
Short-term Activity Ratio
Working capital turnover1 2.48 2.26 2.32 2.79 1.75 0.93
Benchmarks
Working Capital Turnover, Competitors2
Becton, Dickinson & Co. 17.14 81.96 0.79 6.35 6.20
Boston Scientific Corp. 7.18
Danaher Corp. 0.87 8.83 8.91 12.34
Edwards Lifesciences Corp. 2.09 2.64 3.04 1.74 1.59
Intuitive Surgical Inc. 1.23 1.06 1.49 1.02 1.40
Stryker Corp. 2.14 2.76 2.76 2.40 2.24
Thermo Fisher Scientific Inc. 4.48 5.44 8.82 8.48 10.64
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 10.69 24.89 13.50 20.86 10.24
Working Capital Turnover, Industry
Health Care 5.19 5.10 4.22 3.64 3.61

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Working capital turnover = Net sales ÷ Working capital
= 28,913 ÷ 11,665 = 2.48

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Medtronic PLC’s working capital turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Average Inventory Processing Period

Medtronic PLC, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data
Inventory turnover 2.23 2.44 2.53 2.78 2.63 1.82
Short-term Activity Ratio (no. days)
Average inventory processing period1 164 150 144 131 139 200
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Becton, Dickinson & Co. 105 103 108 97 128
Boston Scientific Corp. 185 151 152 144 171
Danaher Corp. 75 79 83 83 78
Edwards Lifesciences Corp. 210 236 231 182 201
Intuitive Surgical Inc. 159 133 94 82 76
Stryker Corp. 231 231 211 193 179
Thermo Fisher Scientific Inc. 87 81 95 82 79
Average Inventory Processing Period, Sector
Health Care Equipment & Services 27 26 26 25 29
Average Inventory Processing Period, Industry
Health Care 68 64 67 66 75

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.23 = 164

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Medtronic PLC’s number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Medtronic PLC, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data
Receivables turnover 6.22 4.91 5.00 5.31 5.18 3.96
Short-term Activity Ratio (no. days)
Average receivable collection period1 59 74 73 69 70 92
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Becton, Dickinson & Co. 50 53 53 47 57
Boston Scientific Corp. 62 60 62 64 62
Danaher Corp. 65 64 70 69 70
Edwards Lifesciences Corp. 46 45 45 45 46
Intuitive Surgical Inc. 53 67 60 58 60
Stryker Corp. 71 63 64 63 61
Thermo Fisher Scientific Inc. 62 62 68 61 55
UnitedHealth Group Inc. 18 18 17 16 15
Average Receivable Collection Period, Sector
Health Care Equipment & Services 34 34 34 33 35
Average Receivable Collection Period, Industry
Health Care 50 49 50 48 50

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.22 = 59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Medtronic PLC’s number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Operating Cycle

Medtronic PLC, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data
Average inventory processing period 164 150 144 131 139 200
Average receivable collection period 59 74 73 69 70 92
Short-term Activity Ratio
Operating cycle1 223 224 217 200 209 292
Benchmarks
Operating Cycle, Competitors2
Becton, Dickinson & Co. 155 156 161 144 185
Boston Scientific Corp. 247 211 214 208 233
Danaher Corp. 140 143 153 152 148
Edwards Lifesciences Corp. 256 281 276 227 247
Intuitive Surgical Inc. 212 200 154 140 136
Stryker Corp. 302 294 275 256 240
Thermo Fisher Scientific Inc. 149 143 163 143 134
Operating Cycle, Sector
Health Care Equipment & Services 61 60 60 58 64
Operating Cycle, Industry
Health Care 118 113 117 114 125

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 164 + 59 = 223

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Medtronic PLC’s operating cycle deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Average Payables Payment Period

Medtronic PLC, average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data
Payables turnover 4.72 4.69 5.56 5.37 5.35 3.92
Short-term Activity Ratio (no. days)
Average payables payment period1 77 78 66 68 68 93
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Becton, Dickinson & Co. 44 46 47 37 41
Boston Scientific Corp. 64 45 75 67 35
Danaher Corp. 70 71 68 72 76
Edwards Lifesciences Corp. 59 52 49 44 38
Intuitive Surgical Inc. 33 33 32 31 24
Stryker Corp. 47 51 42 42 45
Thermo Fisher Scientific Inc. 49 44 45 34 33
UnitedHealth Group Inc. 43 42 42 42 44
Average Payables Payment Period, Sector
Health Care Equipment & Services 46 45 45 44 47
Average Payables Payment Period, Industry
Health Care 63 61 63 61 64

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.72 = 77

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Medtronic PLC’s number of days of payables outstanding increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Cash Conversion Cycle

Medtronic PLC, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015
Selected Financial Data
Average inventory processing period 164 150 144 131 139 200
Average receivable collection period 59 74 73 69 70 92
Average payables payment period 77 78 66 68 68 93
Short-term Activity Ratio
Cash conversion cycle1 146 146 151 132 141 199
Benchmarks
Cash Conversion Cycle, Competitors2
Becton, Dickinson & Co. 111 110 114 107 144
Boston Scientific Corp. 183 166 139 141 198
Danaher Corp. 70 72 85 80 72
Edwards Lifesciences Corp. 197 229 227 183 209
Intuitive Surgical Inc. 179 167 122 109 112
Stryker Corp. 255 243 233 214 195
Thermo Fisher Scientific Inc. 100 99 118 109 101
Cash Conversion Cycle, Sector
Health Care Equipment & Services 15 15 15 14 17
Cash Conversion Cycle, Industry
Health Care 55 52 54 53 61

Based on: 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 164 + 5977 = 146

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.