Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Based on: 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), 10-K (reporting date: 2017-04-28).
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Medtronic PLC receivables turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Medtronic PLC payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Medtronic PLC working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
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 deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Medtronic PLC operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
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 decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Inventory Turnover
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of products sold, excluding amortization of intangible assets | 10,145 | 10,483 | 9,424 | 9,155 | 9,055 | 9,291 | |
Inventories, net | 4,616 | 4,313 | 4,229 | 3,753 | 3,579 | 3,338 | |
Short-term Activity Ratio | |||||||
Inventory turnover1 | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | 2.78 | |
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Abbott Laboratories | — | 3.59 | 2.99 | 3.07 | 3.35 | 3.43 | |
Bristol-Myers Squibb Co. | — | 4.74 | 5.68 | 1.88 | 5.48 | 5.20 | |
CVS Health Corp. | — | 13.52 | 11.88 | 12.06 | 9.91 | 10.21 | |
Danaher Corp. | — | 4.16 | 4.28 | 4.87 | 4.60 | 4.42 | |
Intuitive Surgical Inc. | — | 2.98 | 2.49 | 2.30 | 2.74 | 3.88 | |
Inventory Turnover, Sector | |||||||
Health Care Equipment & Services | — | 17.80 | 15.74 | 15.24 | 15.31 | 15.51 | |
Inventory Turnover, Industry | |||||||
Health Care | — | 8.88 | 8.04 | 8.15 | 7.97 | 7.77 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Inventory turnover = Cost of products sold, excluding amortization of intangible assets ÷ Inventories, net
= 10,145 ÷ 4,616 = 2.20
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables Turnover
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net sales | 31,686 | 30,117 | 28,913 | 30,557 | 29,953 | 29,710 | |
Accounts receivable, less allowances and credit losses | 5,551 | 5,462 | 4,645 | 6,222 | 5,987 | 5,591 | |
Short-term Activity Ratio | |||||||
Receivables turnover1 | 5.71 | 5.51 | 6.22 | 4.91 | 5.00 | 5.31 | |
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Abbott Laboratories | — | 6.64 | 5.40 | 5.88 | 5.90 | 5.22 | |
Anthem Inc. | — | 20.66 | 19.72 | 18.20 | 19.13 | 23.20 | |
Bristol-Myers Squibb Co. | — | 5.65 | 5.72 | 3.89 | 4.66 | 4.43 | |
CVS Health Corp. | — | 11.91 | 12.32 | 13.04 | 11.00 | 14.02 | |
Danaher Corp. | — | 6.36 | 5.51 | 5.61 | 5.70 | 5.20 | |
Intuitive Surgical Inc. | — | 7.30 | 6.75 | 6.94 | 5.46 | 6.11 | |
UnitedHealth Group Inc. | — | 15.91 | 15.65 | 16.05 | 15.64 | 16.56 | |
Receivables Turnover, Sector | |||||||
Health Care Equipment & Services | — | 11.31 | 11.22 | 11.09 | 10.53 | 11.51 | |
Receivables Turnover, Industry | |||||||
Health Care | — | 8.19 | 8.12 | 8.49 | 8.17 | 8.44 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances and credit losses
= 31,686 ÷ 5,551 = 5.71
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 deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Payables Turnover
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of products sold, excluding amortization of intangible assets | 10,145 | 10,483 | 9,424 | 9,155 | 9,055 | 9,291 | |
Accounts payable | 2,276 | 2,106 | 1,996 | 1,953 | 1,628 | 1,731 | |
Short-term Activity Ratio | |||||||
Payables turnover1 | 4.46 | 4.98 | 4.72 | 4.69 | 5.56 | 5.37 | |
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Abbott Laboratories | — | 4.21 | 3.80 | 4.07 | 4.27 | 5.14 | |
Anthem Inc. | — | 7.59 | 7.75 | 9.25 | 9.65 | 9.04 | |
Bristol-Myers Squibb Co. | — | 3.37 | 4.34 | 3.30 | 3.46 | 2.70 | |
CVS Health Corp. | — | 19.14 | 19.72 | 20.13 | 18.27 | 17.63 | |
Danaher Corp. | — | 4.48 | 4.79 | 5.23 | 5.13 | 5.39 | |
Intuitive Surgical Inc. | — | 14.45 | 18.35 | 11.08 | 11.12 | 11.33 | |
UnitedHealth Group Inc. | — | 7.63 | 7.29 | 7.21 | 7.31 | 7.28 | |
Payables Turnover, Sector | |||||||
Health Care Equipment & Services | — | 9.28 | 9.33 | 9.72 | 9.39 | 9.26 | |
Payables Turnover, Industry | |||||||
Health Care | — | 7.61 | 7.46 | 7.79 | 7.58 | 7.42 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Payables turnover = Cost of products sold, excluding amortization of intangible assets ÷ Accounts payable
= 10,145 ÷ 2,276 = 4.46
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 increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Working Capital Turnover
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 23,059 | 22,548 | 22,031 | 21,967 | 22,980 | 24,873 | |
Less: Current liabilities | 12,394 | 8,509 | 10,366 | 8,472 | 10,084 | 14,220 | |
Working capital | 10,665 | 14,039 | 11,665 | 13,495 | 12,896 | 10,653 | |
Net sales | 31,686 | 30,117 | 28,913 | 30,557 | 29,953 | 29,710 | |
Short-term Activity Ratio | |||||||
Working capital turnover1 | 2.97 | 2.15 | 2.48 | 2.26 | 2.32 | 2.79 | |
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Abbott Laboratories | — | 3.87 | 4.06 | 6.64 | 5.44 | 2.44 | |
Anthem Inc. | — | 7.23 | 6.39 | 6.11 | 6.91 | 6.48 | |
Bristol-Myers Squibb Co. | — | 3.95 | 3.72 | 2.28 | 3.32 | 3.64 | |
CVS Health Corp. | — | — | — | — | 157.15 | 318.01 | |
Danaher Corp. | — | 8.40 | 3.48 | 0.87 | 8.83 | 8.91 | |
Intuitive Surgical Inc. | — | 1.22 | 0.77 | 1.23 | 1.06 | 1.49 | |
UnitedHealth Group Inc. | — | — | — | — | — | — | |
Working Capital Turnover, Sector | |||||||
Health Care Equipment & Services | — | 21.48 | 19.96 | 13.85 | 18.86 | 16.68 | |
Working Capital Turnover, Industry | |||||||
Health Care | — | 11.05 | 11.19 | 7.23 | 6.36 | 5.91 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Working capital turnover = Net sales ÷ Working capital
= 31,686 ÷ 10,665 = 2.97
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 deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Inventory Processing Period
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | 2.78 | |
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | 166 | 150 | 164 | 150 | 144 | 131 | |
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Abbott Laboratories | — | 102 | 122 | 119 | 109 | 107 | |
Bristol-Myers Squibb Co. | — | 77 | 64 | 194 | 67 | 70 | |
CVS Health Corp. | — | 27 | 31 | 30 | 37 | 36 | |
Danaher Corp. | — | 88 | 85 | 75 | 79 | 83 | |
Intuitive Surgical Inc. | — | 122 | 147 | 159 | 133 | 94 | |
Average Inventory Processing Period, Sector | |||||||
Health Care Equipment & Services | — | 21 | 23 | 24 | 24 | 24 | |
Average Inventory Processing Period, Industry | |||||||
Health Care | — | 41 | 45 | 45 | 46 | 47 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.20 = 166
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | 5.71 | 5.51 | 6.22 | 4.91 | 5.00 | 5.31 | |
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | 64 | 66 | 59 | 74 | 73 | 69 | |
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Abbott Laboratories | — | 55 | 68 | 62 | 62 | 70 | |
Anthem Inc. | — | 18 | 19 | 20 | 19 | 16 | |
Bristol-Myers Squibb Co. | — | 65 | 64 | 94 | 78 | 82 | |
CVS Health Corp. | — | 31 | 30 | 28 | 33 | 26 | |
Danaher Corp. | — | 57 | 66 | 65 | 64 | 70 | |
Intuitive Surgical Inc. | — | 50 | 54 | 53 | 67 | 60 | |
UnitedHealth Group Inc. | — | 23 | 23 | 23 | 23 | 22 | |
Average Receivable Collection Period, Sector | |||||||
Health Care Equipment & Services | — | 32 | 33 | 33 | 35 | 32 | |
Average Receivable Collection Period, Industry | |||||||
Health Care | — | 45 | 45 | 43 | 45 | 43 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.71 = 64
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 deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Operating Cycle
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 166 | 150 | 164 | 150 | 144 | 131 | |
Average receivable collection period | 64 | 66 | 59 | 74 | 73 | 69 | |
Short-term Activity Ratio | |||||||
Operating cycle1 | 230 | 216 | 223 | 224 | 217 | 200 | |
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Abbott Laboratories | — | 157 | 190 | 181 | 171 | 177 | |
Bristol-Myers Squibb Co. | — | 142 | 128 | 288 | 145 | 152 | |
CVS Health Corp. | — | 58 | 61 | 58 | 70 | 62 | |
Danaher Corp. | — | 145 | 151 | 140 | 143 | 153 | |
Intuitive Surgical Inc. | — | 172 | 201 | 212 | 200 | 154 | |
Operating Cycle, Sector | |||||||
Health Care Equipment & Services | — | 53 | 56 | 57 | 59 | 56 | |
Operating Cycle, Industry | |||||||
Health Care | — | 86 | 90 | 88 | 91 | 90 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 166 + 64 = 230
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | 4.46 | 4.98 | 4.72 | 4.69 | 5.56 | 5.37 | |
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | 82 | 73 | 77 | 78 | 66 | 68 | |
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Abbott Laboratories | — | 87 | 96 | 90 | 85 | 71 | |
Anthem Inc. | — | 48 | 47 | 39 | 38 | 40 | |
Bristol-Myers Squibb Co. | — | 108 | 84 | 110 | 105 | 135 | |
CVS Health Corp. | — | 19 | 19 | 18 | 20 | 21 | |
Danaher Corp. | — | 82 | 76 | 70 | 71 | 68 | |
Intuitive Surgical Inc. | — | 25 | 20 | 33 | 33 | 32 | |
UnitedHealth Group Inc. | — | 48 | 50 | 51 | 50 | 50 | |
Average Payables Payment Period, Sector | |||||||
Health Care Equipment & Services | — | 39 | 39 | 38 | 39 | 39 | |
Average Payables Payment Period, Industry | |||||||
Health Care | — | 48 | 49 | 47 | 48 | 49 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.46 = 82
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 decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Cash Conversion Cycle
Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 166 | 150 | 164 | 150 | 144 | 131 | |
Average receivable collection period | 64 | 66 | 59 | 74 | 73 | 69 | |
Average payables payment period | 82 | 73 | 77 | 78 | 66 | 68 | |
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | 148 | 143 | 146 | 146 | 151 | 132 | |
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Abbott Laboratories | — | 70 | 94 | 91 | 86 | 106 | |
Bristol-Myers Squibb Co. | — | 34 | 44 | 178 | 40 | 17 | |
CVS Health Corp. | — | 39 | 42 | 40 | 50 | 41 | |
Danaher Corp. | — | 63 | 75 | 70 | 72 | 85 | |
Intuitive Surgical Inc. | — | 147 | 181 | 179 | 167 | 122 | |
Cash Conversion Cycle, Sector | |||||||
Health Care Equipment & Services | — | 14 | 17 | 19 | 20 | 17 | |
Cash Conversion Cycle, Industry | |||||||
Health Care | — | 38 | 41 | 41 | 43 | 41 |
Based on: 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), 10-K (reporting date: 2017-04-28).
1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 166 + 64 – 82 = 148
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |