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Medtronic ROA %

: 6.50% (As of Apr. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Medtronic's annualized Net Income for the quarter that ended in Apr. 2022 was $5,940 Mil. Medtronic's average Total Assets over the quarter that ended in Apr. 2022 was $91,393 Mil. Therefore, Medtronic's annualized ROA % for the quarter that ended in Apr. 2022 was 6.50%.

The historical rank and industry rank for Medtronic's ROA % or its related term are showing as below:

MDT' s ROA % Range Over the Past 10 Years
Min: 3.25   Med: 4.58   Max: 10.24
Current: 5.48

During the past 13 years, Medtronic's highest ROA % was 10.24%. The lowest was 3.25%. And the median was 4.58%.

MDT's ROA % is ranked better than
66.35% of 850 companies
in the Medical Devices & Instruments industry
Industry Median: -1.06 vs MDT: 5.48

Medtronic ROA % Historical Data

The historical data trend for Medtronic's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Medtronic Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.25 5.11 5.31 3.92 5.48

Medtronic Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.72 3.30 5.71 6.45 6.50

Competitive Comparison

For the Medical Devices subindustry, Medtronic's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Medtronic ROA % Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's ROA % distribution charts can be found below:

* The bar in red indicates where Medtronic's ROA % falls into.



Medtronic ROA % Calculation

Medtronic's annualized ROA % for the fiscal year that ended in Apr. 2022 is calculated as:

ROA %=Net Income (A: Apr. 2022 )/( (Total Assets (A: Apr. 2021 )+Total Assets (A: Apr. 2022 ))/ count )
=5039/( (93083+90981)/ 2 )
=5039/92032
=5.48 %

Medtronic's annualized ROA % for the quarter that ended in Apr. 2022 is calculated as:

ROA %=Net Income (Q: Apr. 2022 )/( (Total Assets (Q: Jan. 2022 )+Total Assets (Q: Apr. 2022 ))/ count )
=5940/( (91804+90981)/ 2 )
=5940/91392.5
=6.50 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Apr. 2022) net income data. ROA % is displayed in the 30-year financial page.


Medtronic  (NYSE:MDT) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Apr. 2022 )
=Net Income/Total Assets
=5940/91392.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(5940 / 32356)*(32356 / 91392.5)
=Net Margin %*Asset Turnover
=18.36 %*0.354
=6.50 %

Note: The Net Income data used here is four times the quarterly (Apr. 2022) net income data. The Revenue data used here is four times the quarterly (Apr. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Medtronic ROA % Related Terms

Thank you for viewing the detailed overview of Medtronic's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Medtronic Business Description

Medtronic logo
Address
Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2
One of the largest medical device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for almost 50% of the company's total sales.
Executives
Fong Ivan K officer: EVP GENERAL COUNSEL & SECR 3M CENTER ST. PAUL MN 55144-1000
Kirk Jennifer M officer: Chief Accounting Officer 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Lofton Kevin E director GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Wall Brett A. officer: EVP & Group Pres Restora Thera 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Salmon Sean officer: EVP & Group President Diabetes MEDTRONIC PLC, 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Liddicoat John R officer: EVP & President of Americas MEDTRONIC PLC 710 MEDTRONIC PKWY, MS LC300 MINNEAPOLIS MN 55432
White Robert John officer: EVP & President MITG MEDTRONIC PLC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Parkhill Karen L officer: EVP & Chief Financial Officer 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Reddy Preetha director APOLLO HOSPITALS 21 GREAMS LN, OFF GREAMS RD CHENNAI K7 600006
Ellis Gary Lee officer: EVP & Chief Financial Officer THE TORO COMPANY 8111 LYNDALE AVENUE SOUTH BLOOMINGTON MN 55420
Hanson Bryan C officer: EVP AND PRESIDENT, COVIDIEN ZIMMER BIOMET HOLDINGS 345 E. MAIN STREET WARSAW IN 46580
Hakami Hooman officer: EVP & Group President Diabetes 710 MEDTRONIC PKWY MSLC300 MINNEAPOLIS MN 55432
Oconnell Christopher J officer: See Remarks MEDTRONIC, INC. 710 MEDTRONIC PKWY MINNEAPOLIS MN 55432
Lenehan James T director C/O MEDTRONIC INC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432

Medtronic Headlines

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