Medtronic PLC (MDT)
Profitability ratios
Return on sales
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.96% | 25.79% | 26.23% | 22.40% | 71.09% |
| Operating profit margin | 15.61% | 17.40% | 18.44% | 15.52% | 17.48% |
| Pretax margin | 14.59% | 16.93% | 17.62% | 13.40% | 14.73% |
| Net profit margin | 11.15% | 11.92% | 16.16% | 12.48% | 17.47% |
Medtronic PLC's profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 22.40% to 26.23%, with a significant drop in 2020 possibly due to extraordinary events impacting the cost of goods sold. The operating profit margin has also varied, with the lowest value in 2021 and the highest in 2022, indicating changes in efficiency and cost management.
The pretax margin reflects the company's ability to generate profits before accounting for taxes, showing a fluctuating trend from 13.40% to 17.62%. The net profit margin, which indicates how much of revenue translates into profit for shareholders, ranged from 11.15% to 17.47%. The drop in profitability in 2020 may have been temporary, given the recovery in subsequent years.
Overall, Medtronic PLC's profitability ratios suggest a mix of operational efficiency and effectiveness in managing costs, with potential for improvement in certain years to maximize shareholder value.
Return on investment
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.72% | 6.03% | 6.32% | 4.82% | 5.28% |
| Return on assets (ROA) | 4.09% | 4.13% | 5.54% | 3.87% | 5.28% |
| Return on total capital | 11.01% | 8.16% | 8.02% | 5.99% | 7.04% |
| Return on equity (ROE) | 7.32% | 7.30% | 9.59% | 7.01% | 9.44% |
Medtronic PLC's profitability ratios show fluctuating trends over the past five years.
The Operating Return on Assets (Operating ROA) has shown a slight decline from 6.32% in 2022 to 5.72% in 2024. This ratio indicates the company's ability to generate profits from its assets before interest and taxes. A decreasing trend in this ratio may suggest a lower efficiency in utilizing its assets to generate operating income.
The Return on Assets (ROA) has also fluctuated, with a decrease from 5.54% in 2022 to 4.09% in 2024. ROA measures the company's ability to generate earnings relative to its total assets. A declining trend in this ratio may indicate a lower profitability relative to its asset base.
Return on Total Capital has shown an increasing trend, from 8.02% in 2022 to 11.01% in 2024. This ratio reflects the company's ability to generate profits from both debt and equity capital. The increasing trend suggests that Medtronic is effectively utilizing its capital to generate higher returns.
Return on Equity (ROE) has shown fluctuations over the years, with a decrease from 9.59% in 2022 to 7.32% in 2024. ROE indicates the profitability of the company from the perspective of its shareholders. A declining trend in ROE may suggest lower profitability relative to the equity invested by shareholders.
Overall, Medtronic PLC's profitability ratios indicate mixed performance in recent years, with some ratios showing improvement while others have declined. Further analysis of the company's operations and financial strategies may be needed to understand the underlying factors driving these trends in profitability ratios.