Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Medtronic's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2022 was 75.39%.
The historical rank and industry rank for Medtronic's ROC (Joel Greenblatt) % or its related term are showing as below:
MDT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 57.47 Med: 67.07 Max: 79.72
Current: 66.44
During the past 13 years, Medtronic's highest ROC (Joel Greenblatt) % was 79.72%. The lowest was 57.47%. And the median was 67.07%.
MDT's ROC (Joel Greenblatt) % is ranked better than 88.31% of 838
companies
in the Medical Devices & Instruments industry
Industry Median: -0.25
vs MDT: 66.44
Medtronic's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -2.00% per year.
Medtronic ROC (Joel Greenblatt) % Historical Data
The historical data trend for Medtronic's ROC (Joel Greenblatt) % 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
ROC (Joel Greenblatt) %
79.72
75.94
58.89
57.47
68.58
Medtronic Quarterly Data
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
ROC (Joel Greenblatt) %
82.95
43.85
69.67
73.71
75.39
Competitive Comparison
For the Medical Devices subindustry, Medtronic's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution
For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Medtronic's ROC (Joel Greenblatt) % falls into.
Medtronic ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2022) EBIT 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.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Thank you for viewing the detailed overview of Medtronic's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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