Medtronic PLC (MDT)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.38	5.48	5.45	5.51	5.26	5.10	5.36	5.73	5.61	5.74	5.69	5.65	5.34	5.20	5.06	5.63	5.94	4.76	4.82	4.95
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
Working capital turnover	2.96	2.57	2.60	2.49	2.50	2.75	2.76	3.76	2.92	2.18	2.09	2.09	2.08	1.97	1.94	2.40	2.36	1.94	2.03	2.06

Activity ratios provide insight into how efficiently a company manages its assets and operations. Let's analyze Medtronic PLC's activity ratios based on the provided data:

1. Inventory Turnover: Medtronic PLC's inventory turnover has been relatively stable over the analyzed periods, ranging between 4.14 to 5.46 times per year. A higher inventory turnover indicates that the company is selling its inventory more frequently, which may imply efficient inventory management.

2. Receivables Turnover: The receivables turnover for Medtronic PLC has also remained consistent, varying between 4.76 and 5.94 times annually. A higher receivables turnover suggests that the company is collecting its accounts receivable quickly, which could be a positive sign of effective credit management.

3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. Medtronic PLC's payables turnover has fluctuated but generally stayed within a reasonable range, showing efficient management of payables. A lower payables turnover could indicate that the company is taking longer to pay its bills, which may have implications for cash flow management.

4. Working Capital Turnover: This ratio measures how efficiently a company generates revenue relative to its working capital. Medtronic PLC's working capital turnover has shown some variability but has generally remained above 1.9, indicating a healthy level of revenue generation relative to its working capital.

Overall, Medtronic PLC's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operational activities.

Average number of days

		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
Days of inventory on hand (DOH)	days	78.11	87.31	88.07	88.20	82.96	83.72	80.06	76.26	73.23	73.86	70.66	69.04	70.12	75.29	75.54	77.60	72.15	68.99	67.98	66.85
Days of sales outstanding (DSO)	days	67.81	66.66	66.96	66.27	69.43	71.51	68.16	63.66	65.03	63.54	64.12	64.56	68.30	70.13	72.10	64.87	61.48	76.72	75.78	73.76
Number of days of payables	days	36.08	30.37	33.28	34.84	41.72	34.41	34.81	34.57	36.11	32.48	31.15	30.01	34.24	30.33	32.04	29.33	34.05	32.55	33.05	32.40

Days of Inventory on Hand (DOH) for Medtronic PLC have been fluctuating over the past few years, ranging from a low of 66.85 days to a high of 88.20 days. Generally, the company has been able to manage its inventory efficiently, with most values falling within the range of 70-80 days. This indicates that Medtronic is able to convert inventory into sales within a reasonable timeframe.

Days of Sales Outstanding (DSO) have also varied for Medtronic, with values ranging from 61.48 days to 76.72 days. The company has shown some consistency in collecting its accounts receivable, with most values hovering around 65-70 days. Lower DSO values reflect a faster collection of receivables, which is generally positive for cash flow management and working capital efficiency.

The Number of Days of Payables for Medtronic has seen some fluctuations as well, ranging from 29.33 days to 41.72 days. Despite the variability, the company has maintained its payment periods within a reasonable range. A lower number of days of payables indicates that the company is paying its suppliers more quickly, while a higher number suggests a longer payment period. Maintaining a balance in payables management is crucial for healthy supplier relationships and cash flow management.

In conclusion, Medtronic PLC's activity ratios show that the company has been able to effectively manage its inventory, accounts receivable, and accounts payable over the years, leading to efficient working capital management and financial stability.

Long-term

	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
Fixed asset turnover	5.38	5.60	5.64	5.64	5.66	5.53	5.69	5.76	5.76	5.96	6.03	5.95	5.59	5.40	5.48	5.62	5.71	6.24	6.20	6.19
Total asset turnover	0.37	0.36	0.36	0.35	0.35	0.32	0.32	0.34	0.34	0.34	0.34	0.33	0.31	0.28	0.28	0.29	0.30	0.32	0.32	0.32

The fixed asset turnover ratio for Medtronic PLC has been relatively stable over the past few quarters, ranging from 5.38 to 6.03. This indicates that the company is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests efficient utilization of fixed assets in generating sales.

On the other hand, the total asset turnover ratio for Medtronic PLC has also shown consistency, fluctuating between 0.28 and 0.37. This ratio indicates how well the company is generating sales from its total assets. A higher total asset turnover ratio implies that the company is generating more revenue for each dollar of assets it owns.

Overall, both ratios suggest that Medtronic PLC is managing its assets efficiently in generating revenue. However, the company should continue to monitor and improve these ratios to ensure optimal utilization of its assets for future growth and profitability.