Medtronic PLC (MDT)
Return on assets (ROA)
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,676,000 | 3,758,000 | 5,039,000 | 3,606,000 | 4,789,000 |
| Total assets | US$ in thousands | 89,981,000 | 90,948,000 | 90,981,000 | 93,083,000 | 90,689,000 |
| ROA | 4.09% | 4.13% | 5.54% | 3.87% | 5.28% |
April 26, 2024 calculation
ROA = Net income ÷ Total assets
= $3,676,000K ÷ $89,981,000K
= 4.09%
The return on assets (ROA) for Medtronic PLC has shown some fluctuations over the past five years. The ROA was 4.09% as of April 26, 2024, which was slightly lower compared to the previous year's ROA of 4.13% as of April 28, 2023. In the fiscal year ended April 29, 2022, the ROA was 5.54%, indicating a significant increase in the company's ability to generate profit relative to its total assets.
However, the ROA decreased to 3.87% as of April 30, 2021, before rebounding to 5.28% as of April 24, 2020. This suggests that there have been mixed performance trends in terms of the company's efficiency in utilizing its assets to generate profit over this five-year period.
It is important for Medtronic PLC to consistently monitor and improve its ROA, as it signifies the company's effectiveness in generating earnings from its asset base. Fluctuations in ROA may be attributed to changes in asset utilization, profitability, or asset composition, and a sustained improvement in ROA could indicate increased operational efficiency and profitability for the company.
Peer comparison
Apr 26, 2024