Medtronic PLC Gross Profit vs. Price To Sales

MDT Stock  USD 81.69  0.77  0.95%   
Based on the measurements of profitability obtained from Medtronic PLC's financial statements, Medtronic PLC is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in June. Profitability indicators assess Medtronic PLC's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1985-10-31
Previous Quarter
5.2 B
Current Value
5.3 B
Quarterly Volatility
1.9 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Medtronic PLC's Days Sales Outstanding is comparatively stable compared to the past year. Days Of Sales Outstanding is likely to gain to 95.76 in 2024, whereas Price To Sales Ratio is likely to drop 5.34 in 2024. At this time, Medtronic PLC's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 6.5 B in 2024, whereas Net Income is likely to drop slightly above 2.4 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.6519
Fairly Up
Very volatile
Net Profit Margin0.140.1197
Fairly Up
Pretty Stable
Operating Profit Margin0.250.1489
Way Up
Very volatile
Pretax Profit Margin0.250.1293
Way Up
Pretty Stable
Return On Assets0.03680.0387
Notably Down
Slightly volatile
Return On Equity0.06660.0701
Notably 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.
  
Check out Correlation Analysis.
For more information on how to buy Medtronic Stock please use our How to Invest in Medtronic PLC guide.
Is Medtronic PLC's industry 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
0.078
Dividend Share
2.75
Earnings Share
3.15
Revenue Per Share
24.298
Quarterly Revenue Growth
0.047
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 Price To Sales vs. Gross Profit 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 considered to be number one stock in gross profit category among related companies. It is regarded fifth in price to sales category among related companies . The ratio of Gross Profit to Price To Sales for Medtronic PLC is about  6,596,294,046 . At this time, Medtronic PLC's Gross Profit is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Medtronic PLC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Medtronic PLC's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Medtronic PLC's earnings, one of the primary drivers of an investment's value.

Medtronic Price To Sales vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Medtronic PLC

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
21.71 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Medtronic PLC

P/S

 = 

MV Per Share

Revenue Per Share

 = 
3.29 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Medtronic Price To Sales Comparison

Medtronic PLC is currently under evaluation in price to sales category among related companies.

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-3.1 B-3 B
Operating Income6.3 B6.6 B
Income Before Tax6.2 B6.5 B
Total Other Income Expense Net-108.9 M-114.3 M
Net Income4.4 B2.4 B
Income Tax Expense1.8 B1.9 B
Net Income Applicable To Common Shares4.3 B3.2 B
Net Income From Continuing Ops4.4 B4.2 B
Non Operating Income Net Other592.2 M621.9 M
Interest Income147.6 M140.2 M
Net Interest Income-731.4 M-768 M
Change To Netincome603.8 M633.9 M
Net Income Per Share 2.68  2.82 
Income Quality 1.72  1.09 
Net Income Per E B T 0.93  0.59 

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.

Use Medtronic PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Medtronic PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medtronic PLC will appreciate offsetting losses from the drop in the long position's value.

Medtronic PLC Pair Trading

Medtronic PLC Pair Trading Analysis

The ability to find closely correlated positions to Medtronic PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Medtronic PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Medtronic PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Medtronic PLC to buy it.
The correlation of Medtronic PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Medtronic PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Medtronic PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Medtronic PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Medtronic PLC position

In addition to having Medtronic PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Emerging Markets ETFs Thematic Idea Now

Emerging Markets ETFs
Emerging Markets ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Emerging Markets ETFs theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets ETFs Theme or any other thematic opportunities.
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When determining whether Medtronic PLC is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Medtronic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Medtronic Plc Stock. Highlighted below are key reports to facilitate an investment decision about Medtronic Plc Stock:
Check out Correlation Analysis.
For more information on how to buy Medtronic Stock please use our How to Invest in Medtronic PLC guide.
Note that the Medtronic PLC information on this page should be used as a complementary analysis to other Medtronic PLC's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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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.
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To fully project Medtronic PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Medtronic PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Medtronic PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Medtronic PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Medtronic PLC investors may work on each financial statement separately, they are all related. The changes in Medtronic PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Medtronic PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.