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.