Medtronics

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining. The Net Profit Margin declined from 13.54% in 2017 to 12.05% in 2021.
  • The average CFROI for the period under analysis was 7.76%, with 2018 and 2020 performing the worst and best, respectively.
  • In the current year, Medtronic was able to cover its interest liabilities 4.85 times in the current year- compared to 2017 when it was 4.87 times.
  • The Capital turnover stood at 0.36 times in 2021 from 0.35 in 2017, implying a low/high performance on Capital of the business in relation to revenue.

Profitability

  • The revenue of Medtronic has fluctuated year on year. The revenue increased by 0.01% between 2017 and 2018 and a further 2.0% increase was recorded between 2018 and 2019. There also occurred a/an increase of 4.16% between 2020 and 2021 (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 2.13:1/1.72:1 to 2.65:1/2.14:1 on the last year. Which implies that the company [does not have]/has 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 80% in the current year.

Source: Medtronic Annual Report

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