Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Medtronic PLC, short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017
Turnover Ratios
Inventory turnover 2.20 2.43 2.23 2.44 2.53 2.78
Receivables turnover 5.71 5.51 6.22 4.91 5.00 5.31
Payables turnover 4.46 4.98 4.72 4.69 5.56 5.37
Working capital turnover 2.97 2.15 2.48 2.26 2.32 2.79
Average No. Days
Average inventory processing period 166 150 164 150 144 131
Add: Average receivable collection period 64 66 59 74 73 69
Operating cycle 230 216 223 224 217 200
Less: Average payables payment period 82 73 77 78 66 68
Cash conversion cycle 148 143 146 146 151 132

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

Medtronic PLC, inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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

Medtronic PLC, receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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

Medtronic PLC, payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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

Medtronic PLC, working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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

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

Microsoft Excel LibreOffice Calc
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

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

Microsoft Excel LibreOffice Calc
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

Medtronic PLC, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
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

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

Microsoft Excel LibreOffice Calc
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

Medtronic PLC, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
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 + 6482 = 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.