Medtronic PLC (MDT)

Fixed asset turnover

		Apr 26, 2024	Jan 26, 2024	Oct 27, 2023	Jul 28, 2023	Apr 28, 2023	Jan 27, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	Apr 24, 2020	Jan 24, 2020	Oct 25, 2019	Jul 26, 2019
Revenue (ttm)	US$ in thousands	32,983,000	32,678,000	32,347,000	31,976,000	31,530,000	30,049,000	30,129,000	30,435,000	31,156,000	31,285,000	31,267,000	30,705,000	29,191,000	27,143,000	27,072,000	27,436,000	27,578,000	29,726,000	29,468,000	29,167,000
Property, plant and equipment	US$ in thousands	6,131,000	5,838,000	5,735,000	5,665,000	5,569,000	5,437,000	5,298,000	5,281,000	5,413,000	5,251,000	5,188,000	5,162,000	5,221,000	5,023,000	4,938,000	4,882,000	4,828,000	4,764,000	4,756,000	4,711,000
Fixed asset turnover		5.38	5.60	5.64	5.64	5.66	5.53	5.69	5.76	5.76	5.96	6.03	5.95	5.59	5.40	5.48	5.62	5.71	6.24	6.20	6.19

April 26, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $32,983,000K ÷ $6,131,000K
= 5.38

The fixed asset turnover ratio for Medtronic PLC has shown a generally positive trend over the past several quarters. The ratio has been consistently above 5, indicating that the company generates $5 or more in revenue for every $1 invested in fixed assets.

The highest fixed asset turnover ratio of 6.24 was recorded in the third quarter of 2020, showing efficient utilization of fixed assets to generate revenue. While there have been fluctuations in the ratio over the periods analyzed, the overall trend suggests that Medtronic is effectively using its fixed assets to generate sales.

A high fixed asset turnover ratio is generally a positive sign, as it indicates that the company is making efficient use of its assets to generate revenue. Investors and analysts often look at this ratio to assess how effectively a company is utilizing its fixed assets to generate sales.