Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level

Short-term Activity Ratios (Summary)

Medtronic PLC, short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
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
Turnover Ratios
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
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
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
Working capital turnover 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
Average No. Days
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
Add: 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
Operating cycle 223 229 227 224 224 226 222 220 217 222 216 209 200 215 220 214 209 195 219 237 292
Less: 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
Cash conversion cycle 146 155 152 149 146 157 151 147 151 149 148 141 132 153 153 148 141 141 158 174 199

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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 5977 = 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.