Medtronic PLC (MDT)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 24,378,000 | 23,937,000 | 23,847,000 | 23,457,000 | 23,287,000 | 23,434,000 | 23,047,000 | 23,017,000 | 23,007,000 | 22,307,000 | 22,466,000 | 22,671,000 | 22,452,000 | 21,855,000 | 21,667,000 | 21,407,000 | 21,394,000 | 21,809,000 | 21,704,000 | 21,469,000 |
| Inventory | US$ in thousands | 5,217,000 | 5,726,000 | 5,754,000 | 5,668,000 | 5,293,000 | 5,375,000 | 5,055,000 | 4,809,000 | 4,616,000 | 4,514,000 | 4,349,000 | 4,288,000 | 4,313,000 | 4,508,000 | 4,484,000 | 4,551,000 | 4,229,000 | 4,122,000 | 4,042,000 | 3,932,000 |
| Inventory turnover | 4.67 | 4.18 | 4.14 | 4.14 | 4.40 | 4.36 | 4.56 | 4.79 | 4.98 | 4.94 | 5.17 | 5.29 | 5.21 | 4.85 | 4.83 | 4.70 | 5.06 | 5.29 | 5.37 | 5.46 |
April 26, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $24,378,000K ÷ $5,217,000K
= 4.67
The inventory turnover ratio for Medtronic PLC has exhibited relatively stable performance over the past several periods. The ratio has generally ranged between 4.00 and 5.50 times, indicating that the company is effectively managing its inventory levels. A higher inventory turnover ratio signifies that Medtronic is selling through its inventory more frequently within a given period.
The highest inventory turnover ratio was observed in July 2019 at 5.46, indicating a peak efficiency in inventory management during that period. Since then, the ratio has fluctuated slightly but has remained within a similar range. These consistent levels suggest that Medtronic has been able to strike a balance between holding optimal inventory levels to meet demand and avoiding excessive stockpiling.
Overall, the inventory turnover ratios reflect Medtronic's ability to efficiently convert its inventory into sales, which is a positive indication of the company's operational performance in managing its supply chain and meeting customer demand effectively.
Peer comparison
Apr 26, 2024
Apr 26, 2024