EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Medtronic PLC, economic profit calculation

US$ in millions

12 months ended:	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Net operating profit after taxes (NOPAT)¹	4,980)	3,736)	4,151)	4,888)	4,049)	4,408)
Cost of capital²	10.78%	10.92%	11.12%	11.01%	11.21%	10.88%
Invested capital³	70,365)	68,670)	70,505)	69,629)	72,405)	71,146)

Economic profit⁴	(2,602)	(3,760)	(3,689)	(2,779)	(4,064)	(3,332)

Based on: 10-K (reporting date: 2025-04-25), 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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 4,980 – 10.78% × 70,365 = -2,602

Download chart

Medtronic PLC, NOPAT calculation

US$ in millions

12 months ended:	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Net income attributable to Medtronic	4,662)	3,676)	3,758)	5,039)	3,606)	4,789)
Deferred income tax expense (benefit)¹	(339)	(528)	(253)	(611)	(461)	(1,277)
Increase (decrease) in allowances and credit losses²	26)	(3)	(54)	(11)	33)	18)
Increase (decrease) in deferred revenue³	(7)	48)	6)	31)	65)	(12)
Increase (decrease) in restructuring reserve⁴	3)	(83)	120)	(36)	34)	(10)
Increase (decrease) in equity equivalents⁵	(317)	(566)	(181)	(627)	(329)	(1,281)
Interest expense, net	729)	719)	636)	553)	925)	1,092)
Interest expense, operating lease liability⁶	44)	35)	25)	17)	23)	28)
Adjusted interest expense, net	773)	754)	661)	570)	948)	1,120)
Tax benefit of interest expense, net⁷	(162)	(158)	(139)	(120)	(199)	(235)
Adjusted interest expense, net, after taxes⁸	611)	595)	522)	451)	749)	885)
(Gain) loss on marketable securities	(6)	2)	33)	3)	(1)	(3)
Investment income, before taxes	(6)	2)	33)	3)	(1)	(3)
Tax expense (benefit) of investment income⁹	1)	—)	(7)	(1)	—)	1)
Investment income, after taxes¹⁰	(5)	2)	26)	2)	(1)	(2)
Net income (loss) attributable to noncontrolling interest	29)	29)	26)	23)	24)	17)
Net operating profit after taxes (NOPAT)	4,980)	3,736)	4,151)	4,888)	4,049)	4,408)

Based on: 10-K (reporting date: 2025-04-25), 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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowances and credit losses.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in restructuring reserve.

⁵ Addition of increase (decrease) in equity equivalents to net income attributable to Medtronic.

⁶ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,110 × 4.00% = 44

⁷ 2025 Calculation
Tax benefit of interest expense, net = Adjusted interest expense, net × Statutory income tax rate
= 773 × 21.00% = 162

⁸ Addition of after taxes interest expense to net income attributable to Medtronic.

⁹ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 6 × 21.00% = 1

¹⁰ Elimination of after taxes investment income.

Net Income Attributable to Medtronic: The net income figures demonstrated variability over the reported periods. Starting at 4,789 million US dollars in April 2020, the net income decreased significantly to 3,606 million by April 2021. It rebounded to 5,039 million in April 2022, indicating a strong recovery. However, a subsequent decline occurred, with net income falling to 3,758 million in April 2023 and slightly decreasing again to 3,676 million in April 2024. The latest period, April 2025, shows an improvement to 4,662 million, suggesting a positive turnaround in profitability.
Net Operating Profit After Taxes (NOPAT): NOPAT followed a somewhat similar pattern to net income, but with slightly less fluctuation. It decreased from 4,408 million in April 2020 to 4,049 million in April 2021. Then, it increased again to 4,888 million by April 2022. Thereafter, it declined to 4,151 million in April 2023 and further down to 3,736 million in April 2024. The most recent figure in April 2025 reached 4,980 million, representing the highest value among the periods analyzed and indicating improved operational profitability.
Overall Trend Analysis: Both net income and NOPAT exhibited cyclical patterns with notable decreases in 2021 and 2023-2024, followed by recoveries in 2022 and 2025. The volatility suggests the company faced varying operational and market challenges throughout the periods. The recent rise in both metrics in 2025 points towards an enhanced financial performance and operational efficiency. Furthermore, the highest NOPAT value in the final period underscores an improvement in profitability after taxes on operating income, which is a positive indicator for core business performance.

Download chart

Medtronic PLC, cash operating taxes calculation

US$ in millions

12 months ended:	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Income tax provision (benefit)	936)	1,133)	1,580)	455)	265)	(751)
Less: Deferred income tax expense (benefit)	(339)	(528)	(253)	(611)	(461)	(1,277)
Add: Tax savings from interest expense, net	162)	158)	139)	120)	199)	235)
Less: Tax imposed on investment income	1)	—)	(7)	(1)	—)	1)
Cash operating taxes	1,436)	1,820)	1,979)	1,186)	925)	761)

Based on: 10-K (reporting date: 2025-04-25), 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).

The financial data reveals notable trends in the tax-related expenses over the observed period.

Income Tax Provision (Benefit): The income tax provision shows significant fluctuations from 2020 to 2025. Initially, in 2020, there was a tax benefit of -$751 million, indicating a negative tax provision. However, from 2021 onwards, there is a reversal to positive tax provisions, increasing from $265 million in 2021 to a peak of $1,580 million in 2023. Thereafter, the provision decreases to $1,133 million in 2024 and further to $936 million in 2025. This pattern suggests an initial tax advantage followed by growing tax liabilities that begin to moderate in the final years of the period.
Cash Operating Taxes: Cash operating taxes demonstrate a consistent upward trend throughout the period from 2020 to 2023, increasing from $761 million to $1,979 million. In 2024, there is a slight decline to $1,820 million, followed by a further decrease to $1,436 million in 2025. This rise and subsequent decline in cash taxes could reflect operational performance fluctuations or changes in tax strategies and cash management.

Overall, the data indicates evolving tax expenses with an initial tax benefit turning into substantial tax provisions and an increasing trend in cash operating taxes until 2023, followed by a moderate decline in the last two reporting periods.

Download chart

Medtronic PLC, invested capital calculation (financing approach)

US$ in millions

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Current debt obligations	2,874)	1,092)	20)	3,742)	11)	2,776)
Long-term debt	25,642)	23,932)	24,344)	20,372)	26,378)	22,021)
Operating lease liability¹	1,110)	1,023)	1,049)	870)	1,015)	945)
Total reported debt & leases	29,626)	26,047)	25,413)	24,984)	27,404)	25,742)
Shareholders’ equity	48,024)	50,214)	51,483)	52,551)	51,428)	50,737)
Net deferred tax (assets) liabilities²	(3,504)	(3,046)	(2,680)	(2,452)	(2,086)	(1,608)
Allowances and credit losses³	199)	173)	176)	230)	241)	208)
Deferred revenue⁴	446)	453)	405)	399)	368)	303)
Restructuring reserve⁵	150)	147)	230)	110)	146)	112)
Equity equivalents⁶	(2,709)	(2,273)	(1,869)	(1,713)	(1,331)	(985)
Accumulated other comprehensive (income) loss, net of tax⁷	4,284)	3,318)	3,499)	2,265)	3,485)	3,560)
Noncontrolling interests	232)	206)	182)	171)	174)	135)
Adjusted shareholders’ equity	49,831)	51,465)	53,295)	53,274)	53,756)	53,447)
Construction in progress⁸	(2,340)	(2,119)	(1,754)	(1,737)	(1,498)	(1,202)
Available-for-sale debt securities⁹	(6,752)	(6,723)	(6,449)	(6,892)	(7,257)	(6,841)
Invested capital	70,365)	68,670)	70,505)	69,629)	72,405)	71,146)

Based on: 10-K (reporting date: 2025-04-25), 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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of restructuring reserve.

⁶ Addition of equity equivalents to shareholders’ equity.

⁷ Removal of accumulated other comprehensive income.

⁸ Subtraction of construction in progress.

⁹ Subtraction of available-for-sale debt securities.

The financial data shows several notable trends over the six-year period under review.

Total reported debt & leases: The total reported debt and leases have generally increased, growing from 25,742 million US dollars in April 2020 to 29,626 million US dollars in April 2025. Despite some fluctuations, such as a decrease in 2022, the overall trend is upward, indicating a gradual rise in leverage or financing through debt and leases.
Shareholders’ equity: Shareholders’ equity experienced a slight increase from 50,737 million US dollars in April 2020 to a peak of 52,551 million US dollars in April 2022. However, from that peak, equity declined steadily to 48,024 million US dollars by April 2025. This downward trajectory in equity may reflect distributions to shareholders, asset impairments, or other factors reducing net asset value.
Invested capital: Invested capital saw a modest increase from 71,146 million US dollars in April 2020 to a peak near 72,405 million US dollars in April 2021. Subsequently, it declined to a low of 68,670 million US dollars in April 2024 before rising again to 70,365 million US dollars in April 2025. This pattern suggests some variability in the company's capital investment or asset base, with a general trend of moderate fluctuation rather than sustained growth or contraction.

Download chart

Medtronic PLC, cost of capital calculations

Apr 25, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	110,624)	110,624)	÷	138,005)	=	0.80	0.80	×	12.91%	=	10.35%
Debt³	26,271)	26,271)	÷	138,005)	=	0.19	0.19	×	2.66% × (1 – 21.00%)	=	0.40%
Operating lease liability⁴	1,110)	1,110)	÷	138,005)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.03%
Total:	138,005)					1.00					10.78%

Based on: 10-K (reporting date: 2025-04-25).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Apr 26, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	102,800)	102,800)	÷	126,170)	=	0.81	0.81	×	12.91%	=	10.52%
Debt³	22,347)	22,347)	÷	126,170)	=	0.18	0.18	×	2.67% × (1 – 21.00%)	=	0.37%
Operating lease liability⁴	1,023)	1,023)	÷	126,170)	=	0.01	0.01	×	3.40% × (1 – 21.00%)	=	0.02%
Total:	126,170)					1.00					10.92%

Based on: 10-K (reporting date: 2024-04-26).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Apr 28, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	116,291)	116,291)	÷	139,117)	=	0.84	0.84	×	12.91%	=	10.79%
Debt³	21,777)	21,777)	÷	139,117)	=	0.16	0.16	×	2.53% × (1 – 21.00%)	=	0.31%
Operating lease liability⁴	1,049)	1,049)	÷	139,117)	=	0.01	0.01	×	2.40% × (1 – 21.00%)	=	0.01%
Total:	139,117)					1.00					11.12%

Based on: 10-K (reporting date: 2023-04-28).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Apr 29, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	117,817)	117,817)	÷	141,661)	=	0.83	0.83	×	12.91%	=	10.74%
Debt³	22,974)	22,974)	÷	141,661)	=	0.16	0.16	×	2.05% × (1 – 21.00%)	=	0.26%
Operating lease liability⁴	870)	870)	÷	141,661)	=	0.01	0.01	×	2.00% × (1 – 21.00%)	=	0.01%
Total:	141,661)					1.00					11.01%

Based on: 10-K (reporting date: 2022-04-29).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Apr 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	167,894)	167,894)	÷	197,582)	=	0.85	0.85	×	12.91%	=	10.97%
Debt³	28,673)	28,673)	÷	197,582)	=	0.15	0.15	×	1.96% × (1 – 21.00%)	=	0.22%
Operating lease liability⁴	1,015)	1,015)	÷	197,582)	=	0.01	0.01	×	2.30% × (1 – 21.00%)	=	0.01%
Total:	197,582)					1.00					11.21%

Based on: 10-K (reporting date: 2021-04-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Apr 24, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	125,961)	125,961)	÷	154,436)	=	0.82	0.82	×	12.91%	=	10.53%
Debt³	27,530)	27,530)	÷	154,436)	=	0.18	0.18	×	2.37% × (1 – 21.00%)	=	0.33%
Operating lease liability⁴	945)	945)	÷	154,436)	=	0.01	0.01	×	3.00% × (1 – 21.00%)	=	0.01%
Total:	154,436)					1.00					10.88%

Based on: 10-K (reporting date: 2020-04-24).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Medtronic PLC, economic spread ratio calculation, comparison to benchmarks

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(2,602)	(3,760)	(3,689)	(2,779)	(4,064)	(3,332)
Invested capital²	70,365)	68,670)	70,505)	69,629)	72,405)	71,146)
Performance Ratio
Economic spread ratio³	-3.70%	-5.47%	-5.23%	-3.99%	-5.61%	-4.68%
Benchmarks
Economic Spread Ratio, Competitors⁴
Abbott Laboratories	—	-2.28%	-2.59%	-0.37%	0.08%	-3.18%
Elevance Health Inc.	—	-1.84%	-2.32%	-1.28%	0.09%	-2.23%
Intuitive Surgical Inc.	—	10.01%	3.57%	3.28%	18.90%	6.88%
UnitedHealth Group Inc.	—	-0.31%	4.57%	3.60%	3.45%	4.08%

Based on: 10-K (reporting date: 2025-04-25), 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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -2,602 ÷ 70,365 = -3.70%

⁴ Click competitor name to see calculations.

Download chart

Medtronic PLC, economic profit margin calculation, comparison to benchmarks

	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(2,602)	(3,760)	(3,689)	(2,779)	(4,064)	(3,332)

Net sales	33,537)	32,364)	31,227)	31,686)	30,117)	28,913)
Add: Increase (decrease) in deferred revenue	(7)	48)	6)	31)	65)	(12)
Adjusted net sales	33,530)	32,412)	31,233)	31,717)	30,182)	28,901)
Performance Ratio
Economic profit margin²	-7.76%	-11.60%	-11.81%	-8.76%	-13.47%	-11.53%
Benchmarks
Economic Profit Margin, Competitors³
Abbott Laboratories	—	-3.26%	-3.85%	-0.52%	0.12%	-5.55%
Elevance Health Inc.	—	-0.82%	-0.95%	-0.55%	0.04%	-1.05%
Intuitive Surgical Inc.	—	9.32%	3.56%	2.84%	14.87%	7.06%
UnitedHealth Group Inc.	—	-0.16%	2.27%	1.85%	1.70%	2.08%

Based on: 10-K (reporting date: 2025-04-25), 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).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net sales
= 100 × -2,602 ÷ 33,530 = -7.76%

³ Click competitor name to see calculations.

Download chart

Medtronic PLC (NYSE:MDT)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin