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)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Medtronic PLC, short-term (operating) activity ratios

	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.

Medtronic PLC, inventory turnover calculation, comparison to benchmarks

	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.

Medtronic PLC, receivables turnover calculation, comparison to benchmarks

	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.

Medtronic PLC, payables turnover calculation, comparison to benchmarks

	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.

Medtronic PLC, working capital turnover calculation, comparison to benchmarks

	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.

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

	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.

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

	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.

Medtronic PLC, operating cycle calculation, comparison to benchmarks

No. days

	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.

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

	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.

Medtronic PLC, cash conversion cycle calculation, comparison to benchmarks

No. days

	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.

Medtronic PLC (NYSE:MDT)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle