Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Medtronic PLC, short-term (operating) activity ratios (quarterly data)
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
| 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Medtronic PLC’s receivables turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Medtronic PLC’s payables turnover ratio increased from Q2 2020 to Q3 2020 but then decreased significantly from Q3 2020 to Q4 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Medtronic PLC’s working capital turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 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’s number of days of inventory outstanding deteriorated from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 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 Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Medtronic PLC’s operating cycle deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
| 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 decreased from Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 exceeding Q2 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’s cash conversion cycle deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Inventory Turnover
Medtronic PLC, inventory turnover calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cost of products sold | 2,264 | 2,400 | 2,394 | 2,366 | 2,483 | 2,265 | 2,203 | 2,204 | 2,395 | 2,191 | 2,120 | 2,349 | 2,436 | 2,268 | 2,326 | 2,261 | 2,363 | 2,141 | 2,182 | 2,456 | 2,934 | 1,128 | 1,142 | 1,105 | |||||||
| Inventories, net | 4,229 | 4,122 | 4,042 | 3,932 | 3,753 | 3,866 | 3,763 | 3,681 | 3,579 | 3,751 | 3,638 | 3,538 | 3,338 | 3,720 | 3,717 | 3,580 | 3,473 | 3,536 | 3,516 | 3,404 | 3,463 | 1,875 | 1,873 | 1,836 | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Inventory turnover1 | 2.23 | 2.34 | 2.35 | 2.37 | 2.44 | 2.35 | 2.39 | 2.42 | 2.53 | 2.42 | 2.52 | 2.65 | 2.78 | 2.48 | 2.45 | 2.50 | 2.63 | 2.75 | 2.47 | 2.25 | 1.82 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 3.15 | 3.35 | 3.28 | 3.49 | 3.42 | 3.42 | 3.72 | 3.56 | 3.13 | 2.87 | 2.09 | 3.38 | 3.40 | 3.63 | 3.77 | 3.78 | 3.51 | 3.65 | 3.10 | 2.85 | 2.50 | 1.82 | 2.76 | |||||||
| Boston Scientific Corp. | — | — | 2.13 | 1.96 | 1.97 | 1.91 | 2.22 | 2.34 | 2.41 | 2.43 | 2.50 | 2.35 | 2.41 | 2.36 | 2.44 | 2.58 | 2.54 | 2.38 | 2.37 | 2.18 | 2.14 | — | — | — | |||||||
| Danaher Corp. | — | 3.79 | 3.26 | 3.09 | 4.87 | 4.04 | 4.08 | 4.24 | 4.60 | 4.25 | 4.27 | 4.27 | 4.42 | 4.21 | 4.37 | 4.34 | 4.42 | 4.87 | 3.96 | 4.17 | 4.68 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 1.38 | 1.47 | 1.73 | 1.74 | 1.74 | 1.59 | 1.49 | 1.55 | 1.61 | 1.63 | 1.56 | 1.58 | 1.58 | 1.71 | 1.93 | 2.01 | 1.90 | 1.92 | 1.86 | 1.82 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 2.18 | 2.22 | 2.30 | 2.30 | 2.24 | 2.41 | 2.50 | 2.74 | 2.89 | 3.10 | 3.46 | 3.88 | 4.02 | 4.02 | 3.90 | 4.47 | 4.37 | 4.73 | 4.91 | 4.80 | — | — | — | |||||||
| Stryker Corp. | — | — | 1.50 | 1.55 | 1.58 | 1.56 | 1.54 | 1.56 | 1.58 | 1.57 | 1.64 | 1.64 | 1.73 | 1.67 | 1.78 | 1.85 | 1.89 | 1.75 | 1.75 | 1.88 | 2.04 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 3.93 | 4.14 | 4.22 | 4.23 | 4.30 | 4.37 | 4.49 | 4.46 | 4.47 | 4.21 | 3.86 | 3.45 | 4.29 | 4.36 | 4.48 | 4.09 | 4.59 | 4.39 | 4.62 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 2020 Calculation
Inventory turnover
= (Cost of products soldQ4 2020
+ Cost of products soldQ3 2020
+ Cost of products soldQ2 2020
+ Cost of products soldQ1 2020)
÷ Inventories, net
= (2,264 + 2,400 + 2,394 + 2,366)
÷ 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020. |
Receivables Turnover
Medtronic PLC, receivables turnover calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Net sales | 5,997 | 7,717 | 7,706 | 7,493 | 8,146 | 7,546 | 7,481 | 7,384 | 8,144 | 7,369 | 7,050 | 7,390 | 7,916 | 7,283 | 7,345 | 7,166 | 7,567 | 6,934 | 7,058 | 7,274 | 7,304 | 4,318 | 4,366 | 4,273 | |||||||
| Accounts receivable, less allowances and credit losses | 4,645 | 6,248 | 6,118 | 5,894 | 6,222 | 5,854 | 5,743 | 5,674 | 5,987 | 5,775 | 5,752 | 5,784 | 5,591 | 5,453 | 5,661 | 5,357 | 5,562 | 4,863 | 5,044 | 4,811 | 5,112 | 3,568 | 3,750 | 3,690 | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Receivables turnover1 | 6.22 | 4.97 | 5.05 | 5.20 | 4.91 | 5.22 | 5.29 | 5.28 | 5.00 | 5.15 | 5.15 | 5.18 | 5.31 | 5.38 | 5.12 | 5.36 | 5.18 | 5.87 | 5.15 | 4.84 | 3.96 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 8.49 | 8.06 | 8.37 | 7.37 | 7.71 | 7.48 | 7.70 | 6.89 | 6.57 | 5.89 | 6.13 | 6.93 | 6.95 | 7.85 | 8.18 | 7.72 | 7.61 | 7.77 | 7.41 | 6.35 | 5.73 | 5.38 | 8.23 | |||||||
| Boston Scientific Corp. | — | — | 6.97 | 6.84 | 5.87 | 5.79 | 5.89 | 6.13 | 6.11 | 6.12 | 5.99 | 5.87 | 5.84 | 6.01 | 6.03 | 6.01 | 5.70 | 5.90 | 5.74 | 5.94 | 5.86 | — | — | — | |||||||
| Danaher Corp. | — | 5.83 | 5.59 | 5.25 | 5.61 | 5.31 | 5.42 | 5.70 | 5.70 | 5.90 | 5.85 | 5.75 | 5.20 | 5.48 | 5.42 | 5.66 | 5.30 | 5.90 | 4.77 | 5.11 | 5.19 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 7.95 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 7.32 | 8.56 | 8.73 | 6.94 | 6.65 | 6.38 | 7.03 | 5.46 | 6.15 | 6.49 | 6.95 | 6.11 | 6.40 | 5.97 | 6.74 | 6.29 | 6.07 | 6.27 | 7.51 | 6.05 | — | — | — | |||||||
| Stryker Corp. | — | — | 6.39 | 5.65 | 5.14 | 5.97 | 5.90 | 6.08 | 5.83 | 6.39 | 6.24 | 6.04 | 5.66 | 6.17 | 6.28 | 6.29 | 5.76 | 6.04 | 5.96 | 6.32 | 5.98 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 5.86 | 5.69 | 5.87 | 5.75 | 6.02 | 5.93 | 5.89 | 6.20 | 5.90 | 5.52 | 5.39 | 5.42 | 5.89 | 6.05 | 5.99 | 6.21 | 6.50 | 6.50 | 6.67 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | 19.62 | 16.73 | 20.32 | 21.70 | 24.04 | 17.92 | 19.75 | 19.88 | 19.54 | 17.94 | 20.92 | 22.65 | 18.19 | 19.61 | 22.57 | 24.52 | 18.76 | 21.23 | 23.98 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 2020 Calculation
Receivables turnover
= (Net salesQ4 2020
+ Net salesQ3 2020
+ Net salesQ2 2020
+ Net salesQ1 2020)
÷ Accounts receivable, less allowances and credit losses
= (5,997 + 7,717 + 7,706 + 7,493)
÷ 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 Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Payables Turnover
Medtronic PLC, payables turnover calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cost of products sold | 2,264 | 2,400 | 2,394 | 2,366 | 2,483 | 2,265 | 2,203 | 2,204 | 2,395 | 2,191 | 2,120 | 2,349 | 2,436 | 2,268 | 2,326 | 2,261 | 2,363 | 2,141 | 2,182 | 2,456 | 2,934 | 1,128 | 1,142 | 1,105 | |||||||
| Accounts payable | 1,996 | 1,945 | 1,965 | 1,906 | 1,953 | 1,706 | 1,742 | 1,789 | 1,628 | 1,809 | 1,718 | 1,759 | 1,731 | 1,557 | 1,659 | 1,615 | 1,709 | 1,437 | 1,447 | 1,321 | 1,610 | 635 | 723 | 685 | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Payables turnover1 | 4.72 | 4.96 | 4.84 | 4.89 | 4.69 | 5.31 | 5.16 | 4.98 | 5.56 | 5.03 | 5.34 | 5.33 | 5.37 | 5.92 | 5.48 | 5.54 | 5.35 | 6.76 | 6.01 | 5.80 | 3.92 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Boston Scientific Corp. | — | — | 7.90 | 5.27 | 5.75 | 5.85 | 5.51 | 5.76 | 8.06 | 6.09 | 6.75 | 6.47 | 4.89 | 6.84 | 6.63 | 6.65 | 5.42 | 7.99 | 8.19 | 9.59 | 10.40 | — | — | — | |||||||
| Danaher Corp. | — | 5.46 | 5.28 | 4.55 | 5.23 | 5.08 | 5.05 | 5.13 | 5.13 | 5.49 | 5.33 | 5.27 | 5.39 | 5.31 | 5.49 | 5.46 | 5.08 | 6.15 | 4.45 | 4.86 | 4.78 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 12.46 | 13.18 | 10.69 | 11.08 | 9.80 | 9.52 | 8.96 | 11.12 | 11.08 | 10.07 | 10.18 | 11.33 | 11.26 | 11.62 | 11.26 | 11.89 | 13.24 | 12.35 | 13.83 | 15.33 | — | — | — | |||||||
| Stryker Corp. | — | — | 8.12 | 7.08 | 7.69 | 7.74 | 8.00 | 7.74 | 7.22 | 8.09 | 8.01 | 8.28 | 8.77 | 8.97 | 9.48 | 8.82 | 8.76 | 8.70 | 8.21 | 8.42 | 8.16 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 10.35 | 8.93 | 7.40 | 8.44 | 9.92 | 9.33 | 8.36 | 9.89 | 9.42 | 8.99 | 8.03 | 9.58 | 10.58 | 9.84 | 10.69 | 10.38 | 11.31 | 11.08 | 11.20 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | 9.50 | 8.21 | 8.51 | 8.76 | 8.64 | 8.36 | 8.67 | 8.44 | 8.42 | 8.09 | 8.63 | 8.38 | 8.32 | 8.21 | 8.63 | 8.48 | 8.20 | 8.06 | 8.38 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 2020 Calculation
Payables turnover
= (Cost of products soldQ4 2020
+ Cost of products soldQ3 2020
+ Cost of products soldQ2 2020
+ Cost of products soldQ1 2020)
÷ Accounts payable
= (2,264 + 2,400 + 2,394 + 2,366)
÷ 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 increased from Q2 2020 to Q3 2020 but then decreased significantly from Q3 2020 to Q4 2020. |
Working Capital Turnover
Medtronic PLC, working capital turnover calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Current assets | 22,031 | 24,043 | 22,653 | 22,705 | 21,967 | 20,877 | 21,653 | 22,460 | 22,980 | 26,607 | 25,162 | 24,779 | 24,873 | 22,423 | 22,526 | 23,498 | 23,600 | 27,569 | 28,723 | 29,147 | 30,844 | 38,161 | 21,597 | 20,770 | |||||||
| Less: Current liabilities | 10,366 | 8,735 | 8,170 | 8,518 | 8,472 | 8,853 | 8,463 | 9,112 | 10,084 | 10,933 | 10,496 | 15,148 | 14,220 | 12,672 | 9,601 | 7,896 | 7,165 | 8,141 | 8,126 | 7,660 | 9,173 | 5,613 | 6,952 | 5,433 | |||||||
| Working capital | 11,665 | 15,308 | 14,483 | 14,187 | 13,495 | 12,024 | 13,190 | 13,348 | 12,896 | 15,674 | 14,666 | 9,631 | 10,653 | 9,751 | 12,925 | 15,602 | 16,435 | 19,428 | 20,597 | 21,487 | 21,671 | 32,548 | 14,645 | 15,337 | |||||||
| Net sales | 5,997 | 7,717 | 7,706 | 7,493 | 8,146 | 7,546 | 7,481 | 7,384 | 8,144 | 7,369 | 7,050 | 7,390 | 7,916 | 7,283 | 7,345 | 7,166 | 7,567 | 6,934 | 7,058 | 7,274 | 7,304 | 4,318 | 4,366 | 4,273 | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Working capital turnover1 | 2.48 | 2.03 | 2.13 | 2.16 | 2.26 | 2.54 | 2.30 | 2.24 | 2.32 | 1.90 | 2.02 | 3.11 | 2.79 | 3.01 | 2.24 | 1.84 | 1.75 | 1.47 | 1.26 | 1.08 | 0.93 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 6.13 | — | — | 17.14 | 31.45 | — | — | 81.96 | 10.39 | 4.38 | 4.63 | 0.79 | 0.81 | 14.11 | 20.13 | 6.35 | 5.32 | 5.48 | 10.09 | 6.20 | 5.28 | 3.39 | 0.85 | |||||||
| Boston Scientific Corp. | — | — | 3.77 | 12.73 | — | 17.52 | 6.79 | 5.66 | — | — | — | — | — | — | — | — | — | 49.53 | 53.76 | 13.80 | 7.18 | — | — | — | |||||||
| Danaher Corp. | — | 3.14 | 2.80 | 6.74 | 0.87 | 1.28 | 2.86 | 3.56 | 8.83 | 8.29 | 8.36 | 7.15 | 8.91 | 9.52 | 8.49 | 54.35 | — | 10.51 | 5.95 | 8.16 | 12.34 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 2.05 | 2.38 | 2.55 | 2.09 | 2.11 | 2.39 | 2.22 | 2.64 | 2.20 | 2.35 | 2.46 | 3.04 | 1.81 | 1.88 | 2.20 | 1.74 | 1.75 | 1.82 | 1.91 | 1.59 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 0.80 | 0.88 | 1.23 | 1.23 | 1.25 | 1.24 | 1.17 | 1.06 | 1.01 | 1.04 | 1.18 | 1.49 | 1.29 | 1.41 | 1.73 | 1.02 | 1.10 | 1.08 | 1.25 | 1.40 | — | — | — | |||||||
| Stryker Corp. | — | — | 1.68 | 2.28 | 2.14 | 3.13 | 3.35 | 3.32 | 2.76 | 3.53 | 3.87 | 4.17 | 2.76 | 2.72 | 2.43 | 2.21 | 2.40 | 2.51 | 2.48 | 1.24 | 2.24 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 2.69 | 3.54 | 4.48 | 5.40 | 6.70 | 6.10 | 5.44 | 5.47 | 6.61 | 8.75 | 8.82 | 10.94 | 8.08 | 9.64 | 8.48 | 6.10 | 21.93 | 80.21 | 10.64 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 2020 Calculation
Working capital turnover
= (Net salesQ4 2020
+ Net salesQ3 2020
+ Net salesQ2 2020
+ Net salesQ1 2020)
÷ Working capital
= (5,997 + 7,717 + 7,706 + 7,493)
÷ 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 Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Average Inventory Processing Period
Medtronic PLC, average inventory processing period calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Inventory turnover | 2.23 | 2.34 | 2.35 | 2.37 | 2.44 | 2.35 | 2.39 | 2.42 | 2.53 | 2.42 | 2.52 | 2.65 | 2.78 | 2.48 | 2.45 | 2.50 | 2.63 | 2.75 | 2.47 | 2.25 | 1.82 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average inventory processing period1 | 164 | 156 | 155 | 154 | 150 | 156 | 153 | 151 | 144 | 151 | 145 | 138 | 131 | 147 | 149 | 146 | 139 | 133 | 148 | 162 | 200 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 116 | 109 | 111 | 105 | 107 | 107 | 98 | 103 | 117 | 127 | 174 | 108 | 107 | 101 | 97 | 97 | 104 | 100 | 118 | 128 | 146 | 200 | 132 | |||||||
| Boston Scientific Corp. | — | — | 172 | 186 | 185 | 191 | 164 | 156 | 151 | 150 | 146 | 155 | 152 | 155 | 150 | 142 | 144 | 153 | 154 | 168 | 171 | — | — | — | |||||||
| Danaher Corp. | — | 96 | 112 | 118 | 75 | 90 | 89 | 86 | 79 | 86 | 86 | 86 | 83 | 87 | 84 | 84 | 83 | 75 | 92 | 88 | 78 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 264 | 248 | 211 | 210 | 210 | 229 | 246 | 236 | 227 | 223 | 234 | 231 | 230 | 213 | 189 | 182 | 193 | 190 | 197 | 201 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 167 | 164 | 159 | 159 | 163 | 152 | 146 | 133 | 126 | 118 | 106 | 94 | 91 | 91 | 94 | 82 | 83 | 77 | 74 | 76 | — | — | — | |||||||
| Stryker Corp. | — | — | 244 | 235 | 231 | 234 | 237 | 233 | 231 | 232 | 223 | 222 | 211 | 218 | 206 | 197 | 193 | 209 | 208 | 194 | 179 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 93 | 88 | 87 | 86 | 85 | 84 | 81 | 82 | 82 | 87 | 95 | 106 | 85 | 84 | 82 | 89 | 80 | 83 | 79 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020. |
Average Receivable Collection Period
Medtronic PLC, average receivable collection period calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Receivables turnover | 6.22 | 4.97 | 5.05 | 5.20 | 4.91 | 5.22 | 5.29 | 5.28 | 5.00 | 5.15 | 5.15 | 5.18 | 5.31 | 5.38 | 5.12 | 5.36 | 5.18 | 5.87 | 5.15 | 4.84 | 3.96 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average receivable collection period1 | 59 | 73 | 72 | 70 | 74 | 70 | 69 | 69 | 73 | 71 | 71 | 71 | 69 | 68 | 71 | 68 | 70 | 62 | 71 | 75 | 92 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 43 | 45 | 44 | 50 | 47 | 49 | 47 | 53 | 56 | 62 | 60 | 53 | 53 | 46 | 45 | 47 | 48 | 47 | 49 | 57 | 64 | 68 | 44 | |||||||
| Boston Scientific Corp. | — | — | 52 | 53 | 62 | 63 | 62 | 60 | 60 | 60 | 61 | 62 | 62 | 61 | 60 | 61 | 64 | 62 | 64 | 61 | 62 | — | — | — | |||||||
| Danaher Corp. | — | 63 | 65 | 69 | 65 | 69 | 67 | 64 | 64 | 62 | 62 | 63 | 70 | 67 | 67 | 65 | 69 | 62 | 76 | 71 | 70 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 50 | 43 | 42 | 53 | 55 | 57 | 52 | 67 | 59 | 56 | 52 | 60 | 57 | 61 | 54 | 58 | 60 | 58 | 49 | 60 | — | — | — | |||||||
| Stryker Corp. | — | — | 57 | 65 | 71 | 61 | 62 | 60 | 63 | 57 | 58 | 60 | 64 | 59 | 58 | 58 | 63 | 60 | 61 | 58 | 61 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 62 | 64 | 62 | 63 | 61 | 62 | 62 | 59 | 62 | 66 | 68 | 67 | 62 | 60 | 61 | 59 | 56 | 56 | 55 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | 19 | 22 | 18 | 17 | 15 | 20 | 18 | 18 | 19 | 20 | 17 | 16 | 20 | 19 | 16 | 15 | 19 | 17 | 15 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 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 Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Operating Cycle
Medtronic PLC, operating cycle calculation (quarterly data)
No. days
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Average inventory processing period | 164 | 156 | 155 | 154 | 150 | 156 | 153 | 151 | 144 | 151 | 145 | 138 | 131 | 147 | 149 | 146 | 139 | 133 | 148 | 162 | 200 | — | — | — | |||||||
| Average receivable collection period | 59 | 73 | 72 | 70 | 74 | 70 | 69 | 69 | 73 | 71 | 71 | 71 | 69 | 68 | 71 | 68 | 70 | 62 | 71 | 75 | 92 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Operating cycle1 | 223 | 229 | 227 | 224 | 224 | 226 | 222 | 220 | 217 | 222 | 216 | 209 | 200 | 215 | 220 | 214 | 209 | 195 | 219 | 237 | 292 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||||
| Becton, Dickinson & Co. | — | 159 | 154 | 155 | 155 | 154 | 156 | 145 | 156 | 173 | 189 | 234 | 161 | 160 | 147 | 142 | 144 | 152 | 147 | 167 | 185 | 210 | 268 | 176 | |||||||
| Boston Scientific Corp. | — | — | 224 | 239 | 247 | 254 | 226 | 216 | 211 | 210 | 207 | 217 | 214 | 216 | 210 | 203 | 208 | 215 | 218 | 229 | 233 | — | — | — | |||||||
| Danaher Corp. | — | 159 | 177 | 187 | 140 | 159 | 156 | 150 | 143 | 148 | 148 | 149 | 153 | 154 | 151 | 149 | 152 | 137 | 168 | 159 | 148 | — | — | — | |||||||
| Edwards Lifesciences Corp. | — | 310 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 217 | 207 | 201 | 212 | 218 | 209 | 198 | 200 | 185 | 174 | 158 | 154 | 148 | 152 | 148 | 140 | 143 | 135 | 123 | 136 | — | — | — | |||||||
| Stryker Corp. | — | — | 301 | 300 | 302 | 295 | 299 | 293 | 294 | 289 | 281 | 282 | 275 | 277 | 264 | 255 | 256 | 269 | 269 | 252 | 240 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 155 | 152 | 149 | 149 | 146 | 146 | 143 | 141 | 144 | 153 | 163 | 173 | 147 | 144 | 143 | 148 | 136 | 139 | 134 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 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 Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Average Payables Payment Period
Medtronic PLC, average payables payment period calculation (quarterly data)
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Payables turnover | 4.72 | 4.96 | 4.84 | 4.89 | 4.69 | 5.31 | 5.16 | 4.98 | 5.56 | 5.03 | 5.34 | 5.33 | 5.37 | 5.92 | 5.48 | 5.54 | 5.35 | 6.76 | 6.01 | 5.80 | 3.92 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average payables payment period1 | 77 | 74 | 75 | 75 | 78 | 69 | 71 | 73 | 66 | 73 | 68 | 68 | 68 | 62 | 67 | 66 | 68 | 54 | 61 | 63 | 93 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||||
| Boston Scientific Corp. | — | — | 46 | 69 | 64 | 62 | 66 | 63 | 45 | 60 | 54 | 56 | 75 | 53 | 55 | 55 | 67 | 46 | 45 | 38 | 35 | — | — | — | |||||||
| Danaher Corp. | — | 67 | 69 | 80 | 70 | 72 | 72 | 71 | 71 | 66 | 69 | 69 | 68 | 69 | 67 | 67 | 72 | 59 | 82 | 75 | 76 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 29 | 28 | 34 | 33 | 37 | 38 | 41 | 33 | 33 | 36 | 36 | 32 | 32 | 31 | 32 | 31 | 28 | 30 | 26 | 24 | — | — | — | |||||||
| Stryker Corp. | — | — | 45 | 52 | 47 | 47 | 46 | 47 | 51 | 45 | 46 | 44 | 42 | 41 | 39 | 41 | 42 | 42 | 44 | 43 | 45 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 35 | 41 | 49 | 43 | 37 | 39 | 44 | 37 | 39 | 41 | 45 | 38 | 35 | 37 | 34 | 35 | 32 | 33 | 33 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | 38 | 44 | 43 | 42 | 42 | 44 | 42 | 43 | 43 | 45 | 42 | 44 | 44 | 44 | 42 | 43 | 44 | 45 | 44 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 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 decreased from Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |
Cash Conversion Cycle
Medtronic PLC, cash conversion cycle calculation (quarterly data)
No. days
| Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | Apr 26, 2019 | Jan 25, 2019 | Oct 26, 2018 | Jul 27, 2018 | Apr 27, 2018 | Jan 26, 2018 | Oct 27, 2017 | Jul 28, 2017 | Apr 28, 2017 | Jan 27, 2017 | Oct 28, 2016 | Jul 29, 2016 | Apr 29, 2016 | Jan 29, 2016 | Oct 30, 2015 | Jul 31, 2015 | Apr 24, 2015 | Jan 23, 2015 | Oct 24, 2014 | Jul 25, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Average inventory processing period | 164 | 156 | 155 | 154 | 150 | 156 | 153 | 151 | 144 | 151 | 145 | 138 | 131 | 147 | 149 | 146 | 139 | 133 | 148 | 162 | 200 | — | — | — | |||||||
| Average receivable collection period | 59 | 73 | 72 | 70 | 74 | 70 | 69 | 69 | 73 | 71 | 71 | 71 | 69 | 68 | 71 | 68 | 70 | 62 | 71 | 75 | 92 | — | — | — | |||||||
| Average payables payment period | 77 | 74 | 75 | 75 | 78 | 69 | 71 | 73 | 66 | 73 | 68 | 68 | 68 | 62 | 67 | 66 | 68 | 54 | 61 | 63 | 93 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 146 | 155 | 152 | 149 | 146 | 157 | 151 | 147 | 151 | 149 | 148 | 141 | 132 | 153 | 153 | 148 | 141 | 141 | 158 | 174 | 199 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||||
| Boston Scientific Corp. | — | — | 178 | 170 | 183 | 192 | 160 | 153 | 166 | 150 | 153 | 161 | 139 | 163 | 155 | 148 | 141 | 169 | 173 | 191 | 198 | — | — | — | |||||||
| Danaher Corp. | — | 92 | 108 | 107 | 70 | 87 | 84 | 79 | 72 | 82 | 79 | 80 | 85 | 85 | 84 | 82 | 80 | 78 | 86 | 84 | 72 | — | — | — | |||||||
| Intuitive Surgical Inc. | — | 188 | 179 | 167 | 179 | 181 | 171 | 157 | 167 | 152 | 138 | 122 | 122 | 116 | 121 | 116 | 109 | 115 | 105 | 97 | 112 | — | — | — | |||||||
| Stryker Corp. | — | — | 256 | 248 | 255 | 248 | 253 | 246 | 243 | 244 | 235 | 238 | 233 | 236 | 225 | 214 | 214 | 227 | 225 | 209 | 195 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | — | — | 120 | 111 | 100 | 106 | 109 | 107 | 99 | 104 | 105 | 112 | 118 | 135 | 112 | 107 | 109 | 113 | 104 | 106 | 101 | — | — | — | |||||||
Based on: 10-K (filing date: 2020-06-19), 10-Q (filing date: 2020-02-28), 10-Q (filing date: 2019-12-03), 10-Q (filing date: 2019-08-30), 10-K (filing date: 2019-06-21), 10-Q (filing date: 2019-03-01), 10-Q (filing date: 2018-11-29), 10-Q (filing date: 2018-08-31), 10-K (filing date: 2018-06-22), 10-Q (filing date: 2018-03-02), 10-Q (filing date: 2017-12-04), 10-Q (filing date: 2017-09-01), 10-K (filing date: 2017-06-27), 10-Q (filing date: 2017-03-03), 10-Q (filing date: 2016-12-05), 10-Q (filing date: 2016-09-07), 10-K (filing date: 2016-06-28), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-09), 10-Q (filing date: 2015-09-09), 10-K (filing date: 2015-06-23), 10-Q (filing date: 2015-02-27), 10-Q (filing date: 2014-11-26), 10-Q (filing date: 2014-08-29).
1 Q4 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 164 + 59 – 77 = 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. | Medtronic PLC’s cash conversion cycle deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level. |