Medtronic PLC (MDT)
Payables turnover
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,928,000 | 12,320,000 | 16,266,000 | 16,102,000 | 18,828,000 | 18,197,000 | 17,435,000 | 17,281,000 | 17,113,000 | 17,331,000 | 17,652,000 | 17,713,000 | 17,791,000 | 17,347,000 | 16,636,000 | 16,867,000 | 16,619,000 | 17,084,000 | 17,942,000 | 17,481,000 |
| Payables | US$ in thousands | 2,449,000 | 2,286,000 | 2,376,000 | 2,291,000 | 2,410,000 | 2,410,000 | 1,992,000 | 1,992,000 | 2,174,000 | 2,174,000 | 2,239,000 | 2,239,000 | 2,662,000 | 2,662,000 | 2,209,000 | 2,209,000 | 2,198,000 | 2,198,000 | 2,180,000 | 2,180,000 |
| Payables turnover | 3.65 | 5.39 | 6.85 | 7.03 | 7.81 | 7.55 | 8.75 | 8.68 | 7.87 | 7.97 | 7.88 | 7.91 | 6.68 | 6.52 | 7.53 | 7.64 | 7.56 | 7.77 | 8.23 | 8.02 |
April 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,928,000K ÷ $2,449,000K
= 3.65
The payables turnover ratio indicates how efficiently a company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a certain period. In the case of Medtronic PLC, we observed fluctuations in the payables turnover ratio over the period from July 2022 to April 2025.
- From July 2022 to January 2024, the payables turnover ratio showed a relatively stable pattern, ranging between approximately 6.52 to 8.75. This indicates that during this period, Medtronic was effectively managing its payables, with a consistent level of turnover.
- However, from April 2024 onwards, there was a noticeable decline in the payables turnover ratio, with figures dropping to as low as 3.65 by April 30, 2025. This significant decrease suggests that Medtronic may be taking longer to pay its suppliers or managing its accounts payable less efficiently than in previous periods.
Overall, the trend in Medtronic's payables turnover ratio indicates a shift towards a less efficient management of accounts payable in recent periods, which could have implications for the company's working capital management and relationships with suppliers. It would be essential for stakeholders to monitor this trend and assess the underlying reasons for the decreasing payables turnover ratio to address any potential issues in the company's payables management processes.
Peer comparison
Apr 30, 2025