Medtronic PLC (MDT)

Payables 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
Payables	US$ in thousands	2,410,000	2,662,000	2,276,000	2,106,000	1,996,000
Payables turnover		10.13	8.79	10.11	10.64	10.70

April 26, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $24,405,000K ÷ $2,410,000K
= 10.13

The payables turnover of Medtronic PLC has shown fluctuations over the past five years. The payables turnover ratio measures how efficiently a company manages its accounts payable.

Medtronic PLC's payables turnover in April 2024 was 10.13, which indicates that the company paid its suppliers approximately 10.13 times during the fiscal year. This represents an improvement compared to the previous year's ratio of 8.79 in April 2023.

Looking at the trend over the five-year period, the payables turnover ratio fluctuated but generally remained relatively consistent, ranging from a low of 8.79 in April 2023 to a high of 10.70 in April 2020. This suggests that Medtronic PLC has been effective in managing its accounts payable turnover, demonstrating a consistent ability to pay its creditors within a reasonable timeframe.

Overall, the increasing payables turnover ratio from 2020 to 2024 reflects positively on Medtronic PLC's liquidity and ability to manage its payables efficiently.