Medtronic PLC (MDT)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 33,199,000 | 34,610,000 | 34,296,000 | 34,282,000 | 33,677,000 | 31,778,000 | 31,391,000 | 31,065,000 | 31,625,000 | 33,219,000 | 33,244,000 | 33,239,000 | 32,280,000 | 30,315,000 | 29,959,000 | 29,518,000 | 30,022,000 | 30,506,000 | 30,898,000 | 31,419,000 |
| Total current assets | US$ in thousands | 22,513,000 | 22,438,000 | 21,947,000 | 21,935,000 | 21,935,000 | 22,513,000 | 22,513,000 | 22,081,000 | 22,081,000 | 21,869,000 | 21,869,000 | 21,675,000 | 21,675,000 | 25,364,000 | 25,364,000 | 25,398,000 | 25,398,000 | 22,135,000 | 22,135,000 | 23,059,000 |
| Total current liabilities | US$ in thousands | 11,840,000 | 12,195,000 | 10,287,000 | 10,789,000 | 10,789,000 | 9,793,000 | 9,793,000 | 9,659,000 | 9,659,000 | 9,047,000 | 9,047,000 | 9,051,000 | 9,051,000 | 14,422,000 | 14,422,000 | 14,465,000 | 14,465,000 | 14,049,000 | 14,049,000 | 12,394,000 |
| Working capital turnover | 3.11 | 3.38 | 2.94 | 3.08 | 3.02 | 2.50 | 2.47 | 2.50 | 2.55 | 2.59 | 2.59 | 2.63 | 2.56 | 2.77 | 2.74 | 2.70 | 2.75 | 3.77 | 3.82 | 2.95 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $33,199,000K ÷ ($22,513,000K – $11,840,000K)
= 3.11
Medtronic PLC's working capital turnover has shown fluctuations over the analyzed period, ranging from a low of 2.47 to a high of 3.82. The working capital turnover ratio represents the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio is generally favorable as it indicates that the company is efficiently managing its working capital to support sales.
Based on the data provided, we observe that the working capital turnover ratio peaked at 3.82 in July 29, 2022, indicating a strong efficiency in utilizing working capital to generate sales at that time. Subsequently, the ratio fluctuated, with some decreases and increases over the following quarters, hitting a low of 2.47 in January 26, 2024.
It is noteworthy that the working capital turnover ratio ended the analyzed period at 3.11 in January 31, 2025, which is higher compared to some previous quarters. This could suggest an improvement in the company's ability to efficiently convert its working capital into sales revenue towards the end of the period.
Overall, the trend in Medtronic PLC's working capital turnover ratio implies variations in working capital management efficiency throughout the analyzed period, with some quarters showing higher efficiency than others. Further analysis of the company's operations and financial performance would be necessary to understand the drivers behind these fluctuations and determine the overall effectiveness of its working capital management strategy.
Peer comparison
Jan 31, 2025