Medtronic PLC (MDT)

Cash conversion cycle

		Apr 30, 2024	Apr 26, 2024	Apr 30, 2023	Apr 28, 2023	Apr 30, 2022
Days of inventory on hand (DOH)	days	169.78	78.03	180.24	82.57	166.08
Days of sales outstanding (DSO)	days	—	67.86	—	69.44	—
Number of days of payables	days	—	36.04	—	41.53	—
Cash conversion cycle	days	169.78	109.84	180.24	110.48	166.08

April 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 169.78 + — – —
= 169.78

The cash conversion cycle of Medtronic PLC has shown fluctuations over the past few years. As of April 30, 2022, the company's cash conversion cycle was 166.08 days, indicating that it takes approximately 166 days for the company to convert its investments in inventory into cash flows from sales.

By April 28, 2023, the cash conversion cycle improved significantly to 110.48 days, suggesting a more efficient management of working capital and faster conversion of inventory into cash. However, by April 30, 2023, the cycle increased to 180.24 days, indicating a potential slowdown in the company's ability to convert its assets into cash.

A positive trend emerged by April 26, 2024, with a further reduction in the cash conversion cycle to 109.84 days, signaling enhanced efficiency in working capital management. Despite this, by April 30, 2024, the cycle increased again to 169.78 days, showing a slight reversal in the company's ability to convert assets into cash.

Overall, the fluctuations in Medtronic PLC's cash conversion cycle suggest variations in the company's efficiency in managing working capital and converting investments into liquid cash flows over the analyzed period. Further monitoring and analysis of these trends may provide insights into the company's financial performance and operational effectiveness.