The review of Net Profit Margin witnessed a The Net Profit Margin declined from 15.16% in 2019 to 12.03% in 2023.
The average CFROI for the period under analysis was 18.71%, with 2021 and 2019 performing the worst and best,
In the current year, Medtronic covered its interest liabilities 8.82 times, compared to 2019 when it was 4.59 times.
The Capital turnover stood at 0.36 times in 2023 from 0.35 in 2019, implying a high performance on Capital of the business in relation to revenue.
Profitability
The revenue of Medtronic has fluctuated year on year. The revenue decreased by 5.38% between 2019 and 2020 and a further 5.21% increase was recorded between 2021 and 2022. There also occurred a decrease of 1.45% between 2022 and 2023 (the current period).
Medtronic’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio/acid test increased from 2.59:1/1.72:1 to 2.30:1/2.14:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Medtronic is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 49% in the current year.
