Medtronic (XSWX:MDT) ROCE % : 8.02% (As of Jan. 2024)

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What is Medtronic ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Medtronic's annualized ROCE % for the quarter that ended in Jan. 2024 was 8.02%.

Medtronic ROCE % Historical Data

The historical data trend for Medtronic's ROCE % 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.

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Medtronic ROCE % Chart

Medtronic Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

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8.34

6.25

5.70

7.54

7.29

Medtronic Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															7.50	8.48	6.47	7.50	8.02

Medtronic ROCE % Calculation

Medtronic's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	5391	/	( ( (85977.045 - 11712.33)	+	(81716.778 - 8132.324) )	/ 2 )
	=	5391	/	( (74264.715	+	73584.454)	/ 2 )
	=	5391	/	73924.5845
	=	7.29 %

Medtronic's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	5704.424	/	( ( (81393.605 - 8726.907)	+	(78037.208 - 8413.166) )	/ 2 )
	=	5704.424	/	( ( 72666.698	+	69624.042 )	/ 2 )
	=	5704.424	/	71145.37
	=	8.02 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Medtronic (XSWX:MDT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Medtronic (XSWX:MDT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Medtronic PLC (XSWX:MDT) » Definitions » ROCE %

Comparable Companies

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MDT:USA MDTN:Mexico 1MDT:Italy 2M6:Germany MDTC34:Brazil MDT:Austria MDT:Argentina

Address

Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2

Website

https://www.medtronic.com

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 roughly 50% of the company's total sales.