Medtronic PLC (MDT)
Working capital turnover
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 32,961,000 | 31,528,000 | 31,186,000 | 28,884,000 | 27,415,000 |
| Total current assets | US$ in thousands | 21,935,000 | 21,675,000 | 23,059,000 | 22,548,000 | 22,031,000 |
| Total current liabilities | US$ in thousands | 10,789,000 | 9,051,000 | 12,394,000 | 8,509,000 | 10,366,000 |
| Working capital turnover | 2.96 | 2.50 | 2.92 | 2.06 | 2.35 |
April 26, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $32,961,000K ÷ ($21,935,000K – $10,789,000K)
= 2.96
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its sales activities.
Looking at the trend of Medtronic PLC's working capital turnover over the past five years, we observe fluctuations in the ratio. In the most recent fiscal year ending on April 26, 2024, the working capital turnover ratio improved to 2.96 from 2.50 in the previous year. This indicates that the company was able to generate more sales revenue per unit of working capital compared to the prior year.
On a broader historical basis, Medtronic PLC's working capital turnover has shown varying performance levels. The ratio was relatively stable between 2.06 and 2.35 in the three years leading up to the most recent fiscal year, with a notable increase in the most recent period.
Overall, the increasing trend in Medtronic PLC's working capital turnover ratio suggests improved efficiency in utilizing its working capital to support sales growth. However, it is important to continue monitoring this ratio in conjunction with other financial metrics to assess the company's overall financial health and operational efficiency.
Peer comparison
Apr 26, 2024