Medtronic PLC (MDT)
Payables 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 |
| Payables | US$ in thousands | 2,410,000 | 1,992,000 | 2,174,000 | 2,239,000 | 2,662,000 | 2,209,000 | 2,198,000 | 2,180,000 | 2,276,000 | 1,985,000 | 1,917,000 | 1,864,000 | 2,106,000 | 1,816,000 | 1,902,000 | 1,720,000 | 1,996,000 | 1,945,000 | 1,965,000 | 1,906,000 |
| Payables turnover | 10.12 | 12.02 | 10.97 | 10.48 | 8.75 | 10.61 | 10.49 | 10.56 | 10.11 | 11.24 | 11.72 | 12.16 | 10.66 | 12.03 | 11.39 | 12.45 | 10.72 | 11.21 | 11.05 | 11.26 |
April 26, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $24,378,000K ÷ $2,410,000K
= 10.12
The payables turnover ratio for Medtronic PLC has fluctuated over the past two years, ranging from a low of 8.75 to a high of 12.45. The average payables turnover ratio during this period was approximately 10.99.
A payables turnover ratio indicates how efficiently a company is managing its payments to suppliers. A higher ratio suggests that the company is paying its suppliers more quickly, which could indicate strong liquidity and good relationships with suppliers. On the other hand, a lower ratio may indicate that the company is taking longer to pay its bills, which could potentially strain supplier relationships or signal liquidity issues.
In the case of Medtronic PLC, the payables turnover ratio has generally been above the average, indicating that the company is managing its payables efficiently. However, there have been some fluctuations throughout the period, suggesting variations in the payment practices of the company. Further analysis of the company's payment policies and changes in supplier relationships may provide additional insights into these fluctuations.
Peer comparison
Apr 26, 2024