Medtronic PLC Operating Margin vs. Return On Asset

MDT Stock  USD 84.74  0.63  0.75%   
Based on the measurements of profitability obtained from Medtronic PLC's financial statements, Medtronic PLC's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Medtronic PLC's ability to earn profits and add value for shareholders.

Medtronic PLC Operating Profit Margin

0.15

At this time, Medtronic PLC's Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 6.60 in 2024, whereas Days Sales Outstanding is likely to drop 66.20 in 2024. At this time, Medtronic PLC's Income Tax Expense is comparatively stable compared to the past year. Net Income From Continuing Ops is likely to gain to about 4.2 B in 2024, whereas Income Before Tax is likely to drop slightly above 2.7 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.6011
Significantly Up
Slightly volatile
Net Profit Margin0.120.1136
Notably Up
Slightly volatile
Operating Profit Margin0.150.1589
Notably Down
Slightly volatile
Pretax Profit Margin0.130.1495
Fairly Down
Slightly volatile
Return On Assets0.03870.0409
Notably Down
Slightly volatile
Return On Equity0.07010.0732
Sufficiently Down
Slightly volatile
For Medtronic PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Medtronic PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Medtronic PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Medtronic PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Medtronic PLC over time as well as its relative position and ranking within its peers.
  

Medtronic PLC's Revenue Breakdown by Earning Segment

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Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Medtronic PLC. If investors know Medtronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Medtronic PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.356
Earnings Share
3.27
Revenue Per Share
24.709
Quarterly Revenue Growth
0.028
Return On Assets
0.0442
The market value of Medtronic PLC is measured differently than its book value, which is the value of Medtronic that is recorded on the company's balance sheet. Investors also form their own opinion of Medtronic PLC's value that differs from its market value or its book value, called intrinsic value, which is Medtronic PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Medtronic PLC's market value can be influenced by many factors that don't directly affect Medtronic PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Medtronic PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Medtronic PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Medtronic PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Medtronic PLC Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Medtronic PLC's current stock value. Our valuation model uses many indicators to compare Medtronic PLC value to that of its competitors to determine the firm's financial worth.
Medtronic PLC is regarded fifth in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.25  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Medtronic PLC is roughly  3.96 . At this time, Medtronic PLC's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Medtronic PLC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Medtronic Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Medtronic PLC

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.18 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Medtronic PLC

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0442
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Medtronic Return On Asset Comparison

Medtronic PLC is currently under evaluation in return on asset category among its peers.

Medtronic PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Medtronic PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Medtronic PLC will eventually generate negative long term returns. The profitability progress is the general direction of Medtronic PLC's change in net profit over the period of time. It can combine multiple indicators of Medtronic PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.3 B-3.2 B
Operating Income5.1 BB
Income Before Tax4.8 B2.7 B
Total Other Income Expense Net-307 M-322.4 M
Net Income3.7 B2.4 B
Income Tax Expense1.1 B1.2 B
Net Income Applicable To Common Shares4.3 B3.2 B
Net Income From Continuing Ops3.7 B4.2 B
Non Operating Income Net Other592.2 M621.9 M
Interest Income147.6 M140.2 M
Net Interest Income-719 M-755 M
Change To Netincome603.8 M633.9 M
Net Income Per Share 2.77  2.68 
Income Quality 1.85  1.72 
Net Income Per E B T 0.76  0.93 

Medtronic Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Medtronic PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Medtronic PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Medtronic PLC's important profitability drivers and their relationship over time.

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Additional Tools for Medtronic Stock Analysis

When running Medtronic PLC's price analysis, check to measure Medtronic PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Medtronic PLC is operating at the current time. Most of Medtronic PLC's value examination focuses on studying past and present price action to predict the probability of Medtronic PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Medtronic PLC's price. Additionally, you may evaluate how the addition of Medtronic PLC to your portfolios can decrease your overall portfolio volatility.