Medtronic PLC (MDT)
Return on total capital
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,528,000 | 5,974,000 | 6,048,000 | 4,796,000 | 5,130,000 |
| Long-term debt | US$ in thousands | — | 21,700,000 | 22,900,000 | 28,600,000 | 22,140,000 |
| Total stockholders’ equity | US$ in thousands | 50,214,000 | 51,483,000 | 52,551,000 | 51,428,000 | 50,737,000 |
| Return on total capital | 11.01% | 8.16% | 8.02% | 5.99% | 7.04% |
April 26, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,528,000K ÷ ($—K + $50,214,000K)
= 11.01%
Over the past five years, Medtronic PLC's return on total capital has shown a generally positive trend, increasing from 7.04% in April 2020 to 11.01% in April 2024. This indicates that the company has been able to effectively generate returns from its total capital investment. The consistent upward trend suggests that Medtronic has been improving its efficiency in utilizing its total capital to generate profits over the years.
Comparing the latest return on total capital of 11.01% in April 2024 to the figures of the previous years, we can see a steady improvement in the company's ability to generate returns for its capital providers. This increase in return on total capital signifies that Medtronic has been successful in maximizing the profitability of its total capital base over time, which is a positive signal for investors and stakeholders.
Overall, the upward trajectory of Medtronic's return on total capital demonstrates the company's ability to effectively utilize its total capital resources to generate profits, indicating sound financial management and operational efficiency.
Peer comparison
Apr 26, 2024