Medtronic PLC (MDT)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 32,983,000 | 32,678,000 | 32,347,000 | 31,976,000 | 31,530,000 | 30,049,000 | 30,129,000 | 30,435,000 | 31,156,000 | 31,285,000 | 31,267,000 | 30,705,000 | 29,191,000 | 27,143,000 | 27,072,000 | 27,436,000 | 27,578,000 | 29,726,000 | 29,468,000 | 29,167,000 |
| Total current assets | US$ in thousands | 21,935,000 | 22,513,000 | 22,081,000 | 21,869,000 | 21,675,000 | 25,364,000 | 25,398,000 | 22,135,000 | 23,059,000 | 23,303,000 | 22,731,000 | 22,434,000 | 22,548,000 | 26,347,000 | 26,036,000 | 24,509,000 | 22,031,000 | 24,043,000 | 22,653,000 | 22,705,000 |
| Total current liabilities | US$ in thousands | 10,789,000 | 9,793,000 | 9,659,000 | 9,047,000 | 9,051,000 | 14,422,000 | 14,465,000 | 14,049,000 | 12,394,000 | 8,927,000 | 7,803,000 | 7,764,000 | 8,509,000 | 12,534,000 | 12,071,000 | 13,086,000 | 10,366,000 | 8,735,000 | 8,170,000 | 8,518,000 |
| 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 |
April 26, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $32,983,000K ÷ ($21,935,000K – $10,789,000K)
= 2.96
The working capital turnover for Medtronic PLC has shown variation over the periods presented. The ratio fluctuated between 1.94 and 3.76. A high working capital turnover ratio indicates that the company is efficient in managing its working capital to generate sales.
From the data provided, we can observe that the working capital turnover ratio peaked at 3.76 in July 29, 2022, suggesting that Medtronic was exceptionally effective in utilizing its working capital to generate revenue at that point in time. On the contrary, the lowest ratio of 1.94 was recorded on Jan 29, 2021, indicating a lower level of efficiency in working capital management to generate sales.
Overall, the trend in the working capital turnover ratio for Medtronic PLC shows fluctuations, which may be attributed to various factors impacting the company's working capital management and sales generation efficiency over the periods reported. It would be beneficial to further investigate the reasons behind these fluctuations to gain a deeper understanding of the company's financial performance and operational efficiency.
Peer comparison
Apr 26, 2024