Explain this page
Arphra AIPlain-English read on Medtronic plc’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
B+Solid
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin65.0%
Operating margin17.8%
Net margin13.2%
ROE9.6%
ROA5.2%
ROIC6.7%
Liquidity & leverage
Current ratio2.13×
Quick ratio1.62×
Debt / equity0.56×
Net debt / EBITDA2.65×
Interest coverage9×
Efficiency & per-share
Asset turnover0.39×
Inventory days171
Days sales out.67
FCF / share$4.21
Book value / share$38.87
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | $106.8B | — | — | — | — |
| Enterprise value | — | — | — | — | $132.81B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | 3.65 | — | — | — | — |
| EV / FCF | — | — | — | — | 24.48 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | +4.49% | — | — | — | — |
| Free cash flow yield | — | — | — | — | +5.08% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +67.98% | +65.67% | +65.34% | +65.32% | +65.02% | +63.81% | +66.41% | +63.74% | +64.64% |
| Operating margin | +18.15% | +17.56% | +15.89% | +17.76% | +17.78% | +16.63% | +17.01% | +16.74% | +17.66% |
| EBITDA margin | +27.70% | +27.85% | +25.35% | +27.49% | +26.97% | +26.11% | +26.20% | +26.28% | +26.33% |
| EBIT margin | +19.16% | +19.21% | +17.17% | +18.96% | +18.84% | +18.31% | +18.38% | +18.83% | +17.96% |
| Pre-tax margin | +17.41% | +17.18% | +14.95% | +16.78% | +16.87% | +15.79% | +15.87% | +16.33% | +15.93% |
| Net margin | +15.90% | +12.03% | +11.36% | +13.90% | +13.20% | +12.60% | +12.73% | +12.59% | +12.86% |
| Cost structure | |||||||||
| Cost of revenue / sales | +32.02% | +34.33% | +34.66% | +34.68% | +34.98% | +35.67% | +34.82% | +35.55% | +35.22% |
| R&D intensity | +8.67% | +8.63% | +8.45% | +8.15% | +7.90% | +8.32% | +8.34% | +7.95% | +8.26% |
| SG&A intensity | +32.48% | +33.35% | +33.17% | +32.35% | +32.41% | +33.04% | +33.18% | +32.16% | +33.48% |
| Effective tax rate | +8.27% | +29.46% | +23.42% | +16.63% | +21.17% | +20.60% | +20.51% | +19.70% | +21.27% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | — | — | — | — | +9.59% | +9.29% | +8.98% | +8.96% | +9.52% |
| Return on assets (ROA) | — | — | — | — | +5.16% | +4.96% | +5.00% | +4.88% | +4.96% |
| Return on capital (ROC) | — | — | — | — | +8.29% | +7.80% | +7.76% | +7.74% | +8.32% |
| Return on invested capital (ROIC) | — | — | — | — | +6.15% | +5.91% | +5.81% | +5.82% | +6.06% |
| Asset turnover | — | — | — | — | +39.09% | +39.34% | +39.27% | +38.75% | +38.59% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +15.90% | +12.03% | +11.36% | +13.90% | +13.20% | +12.60% | +12.73% | +12.59% | +12.86% |
| Asset turnover (× revenue / assets) | — | — | — | — | +39.09% | +39.34% | +39.27% | +38.75% | +38.59% |
| Equity multiplier (× assets / equity) | — | — | — | — | +185.79% | +187.30% | +179.70% | +183.65% | +191.79% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | — | — | — | — | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Fixed-asset turnover | — | — | — | — | 4.90 | — | — | — | — |
| Inventory turnover | — | — | — | — | 2.14 | — | — | — | — |
| Receivables turnover | — | — | — | — | 5.47 | — | — | — | — |
| Payables turnover | — | — | — | — | 4.81 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | — | — | — | — | 66.68 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | 170.75 | — | — | — | — |
| Days payables outstanding (DPO) | — | — | — | — | 75.86 | — | — | — | — |
| Cash conversion cycle | — | — | — | — | 161.57 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.46 | 1.61 | 1.85 | 1.51 | 1.53 | 1.65 | 1.67 | 1.68 | 1.59 |
| FCF / Net income | 1.19 | 1.22 | 1.41 | 1.11 | 1.13 | 1.22 | 1.20 | 1.26 | 1.19 |
| FCF margin | +18.87% | +14.67% | +16.07% | +15.46% | +14.92% | +15.33% | +15.22% | +15.90% | +15.27% |
| OCF margin | +23.18% | +19.34% | +20.97% | +21.00% | +20.16% | +20.82% | +21.27% | +21.10% | +20.49% |
| CapEx / Revenue | +4.32% | +4.67% | +4.90% | +5.54% | +5.24% | +5.33% | +5.38% | +5.33% | +5.22% |
| CapEx / D&A | 0.51 | 0.54 | 0.60 | 0.65 | 0.64 | — | — | — | — |
| Stock-based comp / Revenue | +1.13% | +1.14% | +1.21% | +1.28% | +1.26% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 3.73 | 2.82 | 2.76 | 3.61 | 3.73 | 5.96 | 6.39 | 6.93 | 7.63 |
| EPS · basic | 3.75 | 2.83 | 2.77 | 3.63 | 3.75 | 5.95 | 6.45 | 7.00 | 7.67 |
| Book value / share | — | — | — | — | 38.87 | 41.02 | 44.43 | 45.90 | 45.98 |
| Tangible BV / share | — | — | — | — | -2.07 | 41.02 | 44.43 | 45.90 | 45.98 |
| Sales / share | 23.45 | 23.43 | 24.33 | 26.00 | 28.23 | 30.23 | 31.35 | 32.67 | 34.03 |
| Operating CF / share | 5.44 | 4.53 | 5.10 | 5.46 | 5.69 | 6.29 | 6.67 | 6.89 | 6.97 |
| Free cash flow / share | 4.42 | 3.44 | 3.91 | 4.02 | 4.21 | 4.63 | 4.77 | 5.20 | 5.20 |
| Dividends / share | 2.50 | 2.71 | 2.76 | 2.78 | 2.83 | 3.20 | 3.25 | 3.41 | 3.60 |
| Payout ratio | +67.14% | +96.22% | +99.73% | +76.98% | +75.81% | +84.09% | +81.51% | +82.88% | +82.21% |
| Retention ratio | +32.86% | +3.78% | +0.27% | +23.02% | +24.19% | +15.91% | +18.49% | +17.12% | +17.79% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | -1.45% | +3.64% | +3.62% | +8.43% | +7.02% | +2.77% | +4.19% | +6.12% | +4.25% |
| Gross profit · YoY | — | -4.80% | +3.12% | +3.58% | +7.93% | +5.04% | +6.96% | -0.01% | +7.63% | +3.60% |
| Profit | ||||||||||
| Operating income · YoY | — | -4.64% | -6.22% | +15.77% | +8.60% | +0.10% | +5.06% | +2.55% | +11.96% | +3.90% |
| EBITDA · YoY | — | -0.91% | -5.68% | +12.37% | +6.41% | +3.59% | +3.12% | +4.51% | +6.33% | +3.60% |
| Net income · YoY | — | -25.42% | -2.18% | +26.82% | +2.96% | +2.19% | +3.80% | +3.03% | +8.37% | +1.52% |
| Operating | ||||||||||
| EBIT · YoY | — | -1.15% | -7.40% | +14.42% | +7.77% | +3.99% | +3.19% | +6.70% | +1.22% | +3.41% |
| R&D · YoY | — | -1.82% | +1.45% | -0.11% | +5.16% | +12.69% | +3.00% | -0.66% | +10.22% | +3.63% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -24.40% | -2.13% | +30.80% | +3.32% | +59.71% | +7.31% | +8.42% | +10.03% | +9.35% |
| EPS · basic · YoY | — | -24.53% | -2.12% | +31.05% | +3.31% | +58.76% | +8.26% | +8.54% | +9.60% | +9.35% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | — | — | — | — | $27.96B | $30.18B | $30.95B | $31.57B | $34.07B |
| Net debt | — | — | — | — | $26.01B | $28.13B | $28.85B | $29.37B | $31.7B |
| Net debt / EBITDA | — | — | — | — | 2.65 | 2.77 | 2.75 | 2.68 | 2.72 |
| Debt / equity | — | — | — | — | 0.56 | 0.57 | 0.55 | 0.54 | 0.57 |
| Debt / assets | — | — | — | — | +30.06% | +30.51% | +30.39% | +29.36% | +29.74% |
| Equity / assets | — | — | — | — | +53.82% | +53.39% | +55.65% | +54.45% | +52.14% |
| Coverage | |||||||||
| EBITDA / interest expense | 15.87 | 13.67 | 11.41 | 12.64 | 13.72 | 12.12 | 12.37 | 12.05 | 12.44 |
| Operating income / interest | 10.40 | 8.62 | 7.15 | 8.17 | 9.04 | 7.72 | 8.03 | 7.67 | 8.34 |
| Interest expense | $553M | $636M | $719M | $729M | $715M | $838.41M | $846.9M | $908.78M | $936.15M |
| Liquidity | |||||||||
| Current ratio | — | — | — | — | 2.13 | — | — | — | — |
| Quick ratio | — | — | — | — | 0.74 | — | — | — | — |
| Cash ratio | — | — | — | — | 0.17 | — | — | — | — |
| Working capital | — | — | — | — | $13.13B | — | — | — | — |
| Working capital / revenue | — | — | — | — | +36.10% | — | — | — | — |
Historical multiples · μ ± σ bands
3 fiscal-year-end observations from key_metrics. Mean is dashed; light-green band is ±1σ, light-red band ±2σ. The dot marks the most recent value; the cheap / fair / rich verdict uses z-score against the issuer's own history (yields inverted — a high yield is cheap).
EV / Salescheap · z -1.41
μ 3.9 · σ 0.2 · current 3.7
EV / FCFcheap · z -1.04
μ 25.1 · σ 0.6 · current 24.5
Earnings yieldfair · z 0.91
μ 4.1% · σ 0.4% · current 4.5%
FCF yieldcheap · z 1.29
μ 4.9% · σ 0.1% · current 5.1%
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| P / E | — | — | — |
| P / B | — | — | — |
| EV / EBITDA | — | — | — |
| EV / Sales | 3.65x | 4.01x | 4.00x |
| Earnings yield | 4.5% | 4.3% | 3.5% |
| FCF yield | 5.1% | 4.8% | 4.9% |
Returns
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Gross margin | — | — | — |
| Operating margin | — | — | — |
| Net margin | — | — | — |
| ROE | 9.7% | 9.7% | 7.3% |
| ROA | 5.2% | 5.1% | 4.1% |
| ROIC | 6.1% | 6.1% | 4.9% |
Leverage & liquidity
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Debt / equity | — | — | — |
| Net debt / EBITDA | 2.65 | 2.85 | 2.89 |
| Interest coverage | — | — | — |
| Current ratio | 2.13x | 1.85x | 2.03x |
| Quick ratio | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).