Medtronic PLC (MDT)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	4,260,000	3,620,000	3,672,000	3,952,000	4,207,000	4,462,000	3,931,000	3,400,000	3,670,000	3,940,000	4,371,000	4,802,000	4,050,000	3,298,000	3,005,000	2,712,000	3,770,000	4,828,000	5,379,000	5,930,000
Total assets	US$ in thousands	89,973,000	90,042,000	89,749,000	89,981,000	89,981,000	90,836,000	90,836,000	90,087,000	90,087,000	90,776,000	90,776,000	90,948,000	90,948,000	94,134,000	94,134,000	93,241,000	93,241,000	89,914,000	89,914,000	90,981,000
ROA		4.73%	4.02%	4.09%	4.39%	4.68%	4.91%	4.33%	3.77%	4.07%	4.34%	4.82%	5.28%	4.45%	3.50%	3.19%	2.91%	4.04%	5.37%	5.98%	6.52%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,260,000K ÷ $89,973,000K
= 4.73%

The return on assets (ROA) of Medtronic PLC has shown some fluctuations over the analyzed period. The ROA ranged from a low of 2.91% on October 31, 2022, to a high of 6.52% on April 30, 2022. The trend indicates a general decline in ROA over time, with some variations in performance from quarter to quarter.

Overall, the ROA metric provides insights into how effectively Medtronic PLC is utilizing its assets to generate profits. A higher ROA indicates that the company is more efficient in using its assets to generate earnings. In contrast, a lower ROA may suggest inefficiencies in asset utilization or declining profitability.

It's essential for Medtronic PLC to monitor its ROA trends closely and identify factors influencing the fluctuations to make informed decisions on asset management and profitability strategies. Utilizing financial ratios, such as ROA, can help stakeholders assess the company's financial health and performance in a competitive market environment.