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Medtronic Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Medtronic has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Medtronic's Piotroski F-Score or its related term are showing as below:

MDT' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Medtronic was 9. The lowest was 1. And the median was 6.


Medtronic Piotroski F-Score Historical Data

The historical data trend for Medtronic's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 6.00 5.00 8.00

Medtronic Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Piotroski F-Score 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 6.00 8.00 9.00 8.00 8.00

Competitive Comparison

For the Medical Devices subindustry, Medtronic's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Medtronic's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jul22) TTM:Last Year (Jul21) TTM:
Net Income was 1311 + 1480 + 1485 + 929 = $5,205 Mil.
Cash Flow from Operations was 1769 + 2228 + 2057 + 1083 = $7,137 Mil.
Revenue was 7847 + 7763 + 8089 + 7371 = $31,070 Mil.
Gross Profit was 5350 + 5304 + 5498 + 4855 = $21,007 Mil.
Average Total Assets from the begining of this year (Jul21)
to the end of this year (Jul22) was
(91802 + 91756 + 91804 + 90981 + 89914) / 5 = $91251.4 Mil.
Total Assets at the begining of this year (Jul21) was $91,802 Mil.
Long-Term Debt & Capital Lease Obligation was $17,481 Mil.
Total Current Assets was $22,135 Mil.
Total Current Liabilities was $14,049 Mil.
Net Income was 489 + 1270 + 1360 + 763 = $3,882 Mil.

Revenue was 7647 + 7775 + 8188 + 7987 = $31,597 Mil.
Gross Profit was 4942 + 5154 + 5535 + 5389 = $21,020 Mil.
Average Total Assets from the begining of last year (Jul20)
to the end of last year (Jul21) was
(93906 + 95886 + 97270 + 93083 + 91802) / 5 = $94389.4 Mil.
Total Assets at the begining of last year (Jul20) was $93,906 Mil.
Long-Term Debt & Capital Lease Obligation was $25,958 Mil.
Total Current Assets was $22,434 Mil.
Total Current Liabilities was $7,764 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Medtronic's current Net Income (TTM) was 5,205. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Medtronic's current Cash Flow from Operations (TTM) was 7,137. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jul21)
=5205/91802
=0.05669811

ROA (Last Year)=Net Income/Total Assets (Jul20)
=3882/93906
=0.04133921

Medtronic's return on assets of this year was 0.05669811. Medtronic's return on assets of last year was 0.04133921. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Medtronic's current Net Income (TTM) was 5,205. Medtronic's current Cash Flow from Operations (TTM) was 7,137. ==> 7,137 > 5,205 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul21 to Jul22
=17481/91251.4
=0.19156966

Gearing (Last Year: Jul21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul20 to Jul21
=25958/94389.4
=0.27500969

Medtronic's gearing of this year was 0.19156966. Medtronic's gearing of last year was 0.27500969. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jul22)=Total Current Assets/Total Current Liabilities
=22135/14049
=1.57555698

Current Ratio (Last Year: Jul21)=Total Current Assets/Total Current Liabilities
=22434/7764
=2.88948995

Medtronic's current ratio of this year was 1.57555698. Medtronic's current ratio of last year was 2.88948995. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Medtronic's number of shares in issue this year was 1334.5. Medtronic's number of shares in issue last year was 1356.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=21007/31070
=0.67611844

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=21020/31597
=0.66525303

Medtronic's gross margin of this year was 0.67611844. Medtronic's gross margin of last year was 0.66525303. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jul21)
=31070/91802
=0.33844579

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul20)
=31597/93906
=0.33647477

Medtronic's asset turnover of this year was 0.33844579. Medtronic's asset turnover of last year was 0.33647477. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Medtronic has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Medtronic  (NYSE:MDT) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Medtronic Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Medtronic's Piotroski F-Score 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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