Medtronic PLC (MDT)

Inventory turnover

Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020
Cost of revenue US$ in thousands 24,405,000 23,398,000 23,006,000 22,414,000 21,361,000
Inventory US$ in thousands 5,217,000 5,293,000 4,616,000 4,313,000 4,229,000
Inventory turnover 4.68 4.42 4.98 5.20 5.05

April 26, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $24,405,000K ÷ $5,217,000K
= 4.68

Medtronic PLC's inventory turnover ratio has exhibited some variability over the past five years, ranging from 4.42 to 5.20. The inventory turnover ratio indicates how efficiently the company is managing its inventory levels by measuring the number of times inventory is sold and replaced during a specific period. A higher inventory turnover ratio suggests that the company is effectively selling through its inventory, minimizing carrying costs and potential obsolescence.

In this case, we observe that Medtronic's inventory turnover has generally remained above 4.0, indicating a solid performance in managing its inventory. The slight fluctuations in the ratio over the years may reflect changes in demand patterns, production efficiency, or inventory management strategies within the company. Overall, Medtronic's inventory turnover ratios suggest that the company has been successful in efficiently managing its inventory levels in recent years.


Peer comparison

Apr 26, 2024


See also:

Medtronic PLC Inventory Turnover