Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Medtronic PLC, short-term (operating) activity ratios

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Turnover Ratios
Inventory turnover 2.03 2.20 2.43 2.23 2.44 2.53
Receivables turnover 5.21 5.71 5.51 6.22 4.91 5.00
Payables turnover 4.03 4.46 4.98 4.72 4.69 5.56
Working capital turnover 2.47 2.97 2.15 2.48 2.26 2.32
Average No. Days
Average inventory processing period 180 166 150 164 150 144
Add: Average receivable collection period 70 64 66 59 74 73
Operating cycle 250 230 216 223 224 217
Less: Average payables payment period 91 82 73 77 78 66
Cash conversion cycle 159 148 143 146 146 151

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Medtronic PLC inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Medtronic PLC receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Medtronic PLC payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Medtronic PLC working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 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 number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Medtronic PLC number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Medtronic PLC operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
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 number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.
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. Medtronic PLC cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Inventory Turnover

Medtronic PLC, inventory turnover 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)
Cost of products sold, excluding amortization of intangible assets 10,719 10,145 10,483 9,424 9,155 9,055
Inventories, net 5,293 4,616 4,313 4,229 3,753 3,579
Short-term Activity Ratio
Inventory turnover1 2.03 2.20 2.43 2.23 2.44 2.53
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 2.74 3.10 3.59 2.99 3.07
Cigna Group 23.70 26.13 31.58 32.70 36.70
CVS Health Corp. 16.83 14.05 13.52 11.88 12.06
Intuitive Surgical Inc. 1.96 2.27 2.98 2.49 2.30
Inventory Turnover, Sector
Health Care Equipment & Services 25.11 23.27 23.69 20.89 21.66
Inventory Turnover, Industry
Health Care 10.74 10.68 10.69 9.78 9.91

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 2023 Calculation
Inventory turnover = Cost of products sold, excluding amortization of intangible assets ÷ Inventories, net
= 10,719 ÷ 5,293 = 2.03

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 inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Medtronic PLC, receivables turnover 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 sales 31,227 31,686 30,117 28,913 30,557 29,953
Accounts receivable, less allowances and credit losses 5,998 5,551 5,462 4,645 6,222 5,987
Short-term Activity Ratio
Receivables turnover1 5.21 5.71 5.51 6.22 4.91 5.00
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 6.11 7.02 6.64 5.40 5.88
Cigna Group 17.06 18.64 19.35 19.47 20.05
CVS Health Corp. 10.12 11.79 11.91 12.32 13.04
Elevance Health Inc. 18.08 18.81 20.66 19.72 18.20
Humana Inc. 51.75 55.25 45.69 66.78 60.97
Intuitive Surgical Inc. 6.30 6.60 7.30 6.75 6.94
UnitedHealth Group Inc. 17.27 18.22 20.07 19.86 20.32
Receivables Turnover, Sector
Health Care Equipment & Services 13.47 14.72 14.99 15.09 14.97
Receivables Turnover, Industry
Health Care 9.01 9.75 9.43 9.48 9.86

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
Receivables turnover = Net sales ÷ Accounts receivable, less allowances and credit losses
= 31,227 ÷ 5,998 = 5.21

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 receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Payables Turnover

Medtronic PLC, payables turnover 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)
Cost of products sold, excluding amortization of intangible assets 10,719 10,145 10,483 9,424 9,155 9,055
Accounts payable 2,662 2,276 2,106 1,996 1,953 1,628
Short-term Activity Ratio
Payables turnover1 4.03 4.46 4.98 4.72 4.69 5.56
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.19 4.15 4.21 3.80 4.07
Cigna Group 6.75 7.31 7.68 7.75 9.34
CVS Health Corp. 20.36 18.07 19.14 19.72 20.13
Elevance Health Inc. 7.72 7.47 7.59 7.75 9.25
Humana Inc. 8.63 8.17 8.35 7.57 8.97
Intuitive Surgical Inc. 12.69 13.78 14.45 18.35 11.08
UnitedHealth Group Inc. 7.47 7.26 7.63 7.29 7.21
Payables Turnover, Sector
Health Care Equipment & Services 9.17 8.91 9.25 9.16 9.95
Payables Turnover, Industry
Health Care 7.84 7.54 7.67 7.51 8.04

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
Payables turnover = Cost of products sold, excluding amortization of intangible assets ÷ Accounts payable
= 10,719 ÷ 2,662 = 4.03

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 payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Medtronic PLC, working capital turnover 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)
Current assets 21,675 23,059 22,548 22,031 21,967 22,980
Less: Current liabilities 9,051 12,394 8,509 10,366 8,472 10,084
Working capital 12,624 10,665 14,039 11,665 13,495 12,896
 
Net sales 31,227 31,686 30,117 28,913 30,557 29,953
Short-term Activity Ratio
Working capital turnover1 2.47 2.97 2.15 2.48 2.26 2.32
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 4.54 4.48 3.87 4.06 6.64
Cigna Group
CVS Health Corp.
Elevance Health Inc. 7.83 8.37 7.23 6.39 6.11
Humana Inc. 9.47 10.27 8.67 7.42 7.19
Intuitive Surgical Inc. 1.14 1.29 1.22 0.77 1.23
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 86.58 72.82 40.87 44.34 59.48
Working Capital Turnover, Industry
Health Care 19.26 17.91 13.16 13.45 8.94

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
Working capital turnover = Net sales ÷ Working capital
= 31,227 ÷ 12,624 = 2.47

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 working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Average Inventory Processing Period

Medtronic PLC, average inventory processing period 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
Inventory turnover 2.03 2.20 2.43 2.23 2.44 2.53
Short-term Activity Ratio (no. days)
Average inventory processing period1 180 166 150 164 150 144
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 133 118 102 122 119
Cigna Group 15 14 12 11 10
CVS Health Corp. 22 26 27 31 30
Intuitive Surgical Inc. 186 161 122 147 159
Average Inventory Processing Period, Sector
Health Care Equipment & Services 15 16 15 17 17
Average Inventory Processing Period, Industry
Health Care 34 34 34 37 37

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.03 = 180

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 number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

Medtronic PLC, average receivable collection period 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
Receivables turnover 5.21 5.71 5.51 6.22 4.91 5.00
Short-term Activity Ratio (no. days)
Average receivable collection period1 70 64 66 59 74 73
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 60 52 55 68 62
Cigna Group 21 20 19 19 18
CVS Health Corp. 36 31 31 30 28
Elevance Health Inc. 20 19 18 19 20
Humana Inc. 7 7 8 5 6
Intuitive Surgical Inc. 58 55 50 54 53
UnitedHealth Group Inc. 21 20 18 18 18
Average Receivable Collection Period, Sector
Health Care Equipment & Services 27 25 24 24 24
Average Receivable Collection Period, Industry
Health Care 41 37 39 39 37

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.21 = 70

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 number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Operating Cycle

Medtronic PLC, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Selected Financial Data
Average inventory processing period 180 166 150 164 150 144
Average receivable collection period 70 64 66 59 74 73
Short-term Activity Ratio
Operating cycle1 250 230 216 223 224 217
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 193 170 157 190 181
Cigna Group 36 34 31 30 28
CVS Health Corp. 58 57 58 61 58
Intuitive Surgical Inc. 244 216 172 201 212
Operating Cycle, Sector
Health Care Equipment & Services 42 41 39 41 41
Operating Cycle, Industry
Health Care 75 71 73 76 74

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 cycle = Average inventory processing period + Average receivable collection period
= 180 + 70 = 250

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 operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

Medtronic PLC, average payables payment period 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
Payables turnover 4.03 4.46 4.98 4.72 4.69 5.56
Short-term Activity Ratio (no. days)
Average payables payment period1 91 82 73 77 78 66
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 87 88 87 96 90
Cigna Group 54 50 48 47 39
CVS Health Corp. 18 20 19 19 18
Elevance Health Inc. 47 49 48 47 39
Humana Inc. 42 45 44 48 41
Intuitive Surgical Inc. 29 26 25 20 33
UnitedHealth Group Inc. 49 50 48 50 51
Average Payables Payment Period, Sector
Health Care Equipment & Services 40 41 39 40 37
Average Payables Payment Period, Industry
Health Care 47 48 48 49 45

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.03 = 91

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 number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

Medtronic PLC, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Selected Financial Data
Average inventory processing period 180 166 150 164 150 144
Average receivable collection period 70 64 66 59 74 73
Average payables payment period 91 82 73 77 78 66
Short-term Activity Ratio
Cash conversion cycle1 159 148 143 146 146 151
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 106 82 70 94 91
Cigna Group -18 -16 -17 -17 -11
CVS Health Corp. 40 37 39 42 40
Intuitive Surgical Inc. 215 190 147 181 179
Cash Conversion Cycle, Sector
Health Care Equipment & Services 2 0 0 1 4
Cash Conversion Cycle, Industry
Health Care 28 23 25 27 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 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 180 + 7091 = 159

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. Medtronic PLC cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.