Medtronic PLC (MDT)
Working capital turnover
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 32,364,000 | 32,961,000 | 31,227,000 | 31,528,000 | 31,686,000 |
| Total current assets | US$ in thousands | 21,935,000 | 21,935,000 | 21,675,000 | 21,675,000 | 23,059,000 |
| Total current liabilities | US$ in thousands | 10,789,000 | 10,789,000 | 9,051,000 | 9,051,000 | 12,394,000 |
| Working capital turnover | 2.90 | 2.96 | 2.47 | 2.50 | 2.97 |
April 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $32,364,000K ÷ ($21,935,000K – $10,789,000K)
= 2.90
The working capital turnover for Medtronic PLC has shown some fluctuations over the past few years. In April 2022, the working capital turnover was 2.97, indicating that the company generated $2.97 in revenue for every dollar of working capital invested. However, this ratio decreased to 2.50 in April 2023 and further declined to 2.47 in April 2023, suggesting a decrease in efficiency in utilizing working capital to generate sales.
There was a notable improvement in working capital turnover in April 2024, increasing to 2.96, showing that the company was able to generate more revenue per dollar of working capital compared to the previous year. In the following period of April 2024, the working capital turnover stood at 2.90, indicating a slight decrease but still showing efficiency in utilizing working capital.
Overall, the trend in working capital turnover for Medtronic PLC has been somewhat fluctuating, with some periods showing improvements in efficiency in managing working capital to generate revenue, while others indicating a slight decline. It is essential for the company to closely monitor this ratio and continue to strive for optimal utilization of working capital to support its business operations effectively.
Peer comparison
Apr 30, 2024