Medtronic PLC (MDT)
Return on total capital
| Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,528,000 | 6,203,000 | 6,093,000 | 6,106,000 | 5,972,000 | 5,982,000 | 6,170,000 | 6,289,000 | 6,048,000 | 6,012,000 | 5,643,000 | 5,010,000 | 4,797,000 | 3,469,000 | 3,846,000 | 4,308,000 | 5,130,000 | 6,756,000 | 6,636,000 | 6,775,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 21,700,000 | — | 21,100,000 | 20,100,000 | 22,900,000 | 26,500,000 | 28,000,000 | 29,200,000 | 28,600,000 | 30,800,000 | 29,900,000 | 28,900,000 | 22,140,000 | 27,500,000 | 27,300,000 | 27,800,000 |
| Total stockholders’ equity | US$ in thousands | 50,214,000 | 51,792,000 | 51,460,000 | 51,178,000 | 51,483,000 | 51,441,000 | 51,880,000 | 52,672,000 | 52,551,000 | 52,542,000 | 51,991,000 | 51,486,000 | 51,428,000 | 50,758,000 | 50,164,000 | 50,296,000 | 50,737,000 | 51,808,000 | 50,578,000 | 50,363,000 |
| Return on total capital | 11.01% | 11.98% | 11.84% | 11.93% | 8.16% | 11.63% | 8.45% | 8.64% | 8.02% | 7.61% | 7.05% | 6.21% | 5.99% | 4.25% | 4.80% | 5.44% | 7.04% | 8.52% | 8.52% | 8.67% |
April 26, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,528,000K ÷ ($—K + $50,214,000K)
= 11.01%
The return on total capital for Medtronic PLC has fluctuated over the past few years, ranging from 4.25% to 11.98%. In general, the company has shown a positive trend in its return on total capital, with some variability.
The highest returns were seen in Jan 2024, Apr 2024, and Jul 2023, indicating efficient utilization of capital to generate profits during those periods. On the other hand, the lowest returns were observed in Jul 2021 and Apr 2021, suggesting potential challenges in capital efficiency during those quarters.
Overall, the return on total capital for Medtronic PLC has shown a generally upward trend over the periods provided, reflecting the company's ability to generate value from its capital investments. However, it is essential for the company to continue monitoring and optimizing its capital allocation strategies to sustain long-term profitability and growth.
Peer comparison
Apr 26, 2024