Medtronic PLC (MDT)

Inventory turnover

		Apr 30, 2024	Apr 26, 2024	Apr 30, 2023	Apr 28, 2023	Apr 30, 2022
Cost of revenue	US$ in thousands	11,216,000	24,405,000	10,719,000	23,398,000	10,145,000
Inventory	US$ in thousands	5,217,000	5,217,000	5,293,000	5,293,000	4,616,000
Inventory turnover		2.15	4.68	2.03	4.42	2.20

April 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $11,216,000K ÷ $5,217,000K
= 2.15

Inventory turnover is an important financial ratio that measures how efficiently a company is managing its inventory. In the case of Medtronic PLC, the inventory turnover has fluctuated over the past few years.

As of April 30, 2022, the inventory turnover was 2.20, indicating that the company sold and replaced its inventory approximately 2.2 times during that year.

By April 28, 2023, the inventory turnover improved significantly to 4.42, suggesting that Medtronic was more efficient in managing its inventory and turning over stock at a faster rate.

However, by April 30, 2023, the inventory turnover dropped to 2.03, which could indicate potential issues with inventory management or changes in sales patterns.

The trend reversed by April 26, 2024, with the inventory turnover increasing to 4.68, demonstrating improved efficiency in inventory management compared to the previous year.

As of April 30, 2024, the inventory turnover decreased again to 2.15. This fluctuation in inventory turnover over the years may be influenced by various factors such as changes in demand, production efficiency, or supply chain disruptions.

Overall, fluctuations in inventory turnover can provide insights into the company's operational efficiency and effectiveness in managing inventory levels. It is essential for Medtronic PLC to analyze these fluctuations and implement strategies to optimize inventory turnover to ensure smooth operations and financial performance.