Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Medtronic PLC, adjustments to financial statements

US$ in millions

Microsoft Excel
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
Adjustment to Total Assets
Total assets (as reported) 89,981 90,948 90,981 93,083 90,689 89,694
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — — 553
Total assets (adjusted) 89,981 90,948 90,981 93,083 90,689 90,247
Adjustment to Total Debt
Total debt (as reported) 25,024 24,364 24,114 26,389 24,797 25,324
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — — 553
Add: Operating lease current liability (classified in Other accrued expenses) 183 180 167 186 171 —
Add: Operating lease non-current liability (classified in Other liabilities) 840 869 703 829 774 —
Total debt (adjusted) 26,047 25,413 24,984 27,404 25,742 25,877

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

1, 2 Equal to total present value of future operating lease payments.

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Medtronic PLC, adjusted financial ratios

Microsoft Excel
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
Total Asset Turnover1
Reported total asset turnover 0.36 0.34 0.35 0.32 0.32 0.34
Adjusted total asset turnover 0.36 0.34 0.35 0.32 0.32 0.34
Debt to Equity2
Reported debt to equity 0.50 0.47 0.46 0.51 0.49 0.51
Adjusted debt to equity 0.52 0.49 0.48 0.53 0.51 0.52
Return on Assets3 (ROA)
Reported ROA 4.09% 4.13% 5.54% 3.87% 5.28% 5.16%
Adjusted ROA 4.09% 4.13% 5.54% 3.87% 5.28% 5.13%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

1 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Medtronic PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Medtronic PLC adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Medtronic PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales 32,364 31,227 31,686 30,117 28,913 30,557
Total assets 89,981 90,948 90,981 93,083 90,689 89,694
Activity Ratio
Total asset turnover1 0.36 0.34 0.35 0.32 0.32 0.34
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 32,364 31,227 31,686 30,117 28,913 30,557
Adjusted total assets 89,981 90,948 90,981 93,083 90,689 90,247
Activity Ratio
Adjusted total asset turnover2 0.36 0.34 0.35 0.32 0.32 0.34

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 32,364 ÷ 89,981 = 0.36

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 32,364 ÷ 89,981 = 0.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Medtronic PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Equity

Microsoft Excel
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 25,024 24,364 24,114 26,389 24,797 25,324
Shareholders’ equity 50,214 51,483 52,551 51,428 50,737 50,091
Solvency Ratio
Debt to equity1 0.50 0.47 0.46 0.51 0.49 0.51
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 26,047 25,413 24,984 27,404 25,742 25,877
Shareholders’ equity 50,214 51,483 52,551 51,428 50,737 50,091
Solvency Ratio
Adjusted debt to equity2 0.52 0.49 0.48 0.53 0.51 0.52

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 25,024 ÷ 50,214 = 0.50

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 26,047 ÷ 50,214 = 0.52

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Medtronic PLC adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 3,676 3,758 5,039 3,606 4,789 4,631
Total assets 89,981 90,948 90,981 93,083 90,689 89,694
Profitability Ratio
ROA1 4.09% 4.13% 5.54% 3.87% 5.28% 5.16%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic 3,676 3,758 5,039 3,606 4,789 4,631
Adjusted total assets 89,981 90,948 90,981 93,083 90,689 90,247
Profitability Ratio
Adjusted ROA2 4.09% 4.13% 5.54% 3.87% 5.28% 5.13%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

1 ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 3,676 ÷ 89,981 = 4.09%

2 Adjusted ROA = 100 × Net income attributable to Medtronic ÷ Adjusted total assets
= 100 × 3,676 ÷ 89,981 = 4.09%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Medtronic PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.