Medtronic PLC (MDT)

Days of inventory on hand (DOH)

		Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Apr 26, 2024	Jan 31, 2024	Jan 26, 2024	Oct 31, 2023	Oct 27, 2023	Jul 31, 2023	Jul 28, 2023	Apr 30, 2023	Apr 28, 2023	Jan 31, 2023	Jan 27, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022
Inventory turnover		1.63	2.20	2.97	2.97	3.61	3.49	3.04	3.02	2.97	3.01	3.11	3.13	3.36	3.28	3.10	3.14	3.29	3.38	3.73	3.64
DOH	days	223.87	166.21	122.95	122.72	101.14	104.64	119.87	120.94	122.73	121.18	117.20	116.80	108.59	111.37	117.93	116.31	111.02	108.00	97.83	100.41

April 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.63
= 223.87

Days of inventory on hand (DOH) is a financial ratio that indicates how many days a company takes to sell its average inventory. A lower DOH value is generally considered more favorable as it implies efficient inventory management.

Analyzing the data provided for Medtronic PLC from July 29, 2022, to April 30, 2025, we observe fluctuations in the DOH metric. The DOH values ranged from a low of 97.83 days on July 31, 2022, to a high of 223.87 days on April 30, 2025.

Initially, from July 29, 2022, to January 31, 2023, the DOH steadily increased, reaching a peak of 117.93 days. This indicates that the company may have faced challenges in managing its inventory efficiently during this period.

Subsequently, there was a slight decline in the DOH metric by April 30, 2023, suggesting potential efforts to streamline inventory management practices. However, the trend reversed, with DOH increasing again by October 31, 2023, and continuing to rise until the end of January 31, 2025, when it reached a significantly high value of 166.21 days, indicating a potential inventory management concern.

The sharp increase in DOH to 223.87 days by April 30, 2025, raises a red flag as it suggests that Medtronic PLC may be experiencing challenges in efficiently selling its inventory. Such an extended period could lead to higher carrying costs, potential obsolescence, and lower liquidity.

Overall, the analysis of Medtronic PLC's DOH indicates fluctuations in inventory management efficiency over the period, with a notable increase in inventory holding days towards the latter dates. It would be crucial for the company to address these inventory management issues to optimize working capital and enhance operational performance.