The Cost Of Goods Sold For Medtronic

1739 Words7 Pages
Ratios If an investor is curious about how much of the market share a specific company possesses, they have to add up the total sales revenue for the particular market and divide the specific company’s revenue by the total revenue for the industry to decipher their market share. For example, Johnson & Johnson possesses $27.43 billion in total revenue; GE Healthcare generated $18.29 billion in revenue, Siemens Healthcare earned $17.54 billion, Medtronic made $16.20 billion in total revenue, and Baxter International gained $14.20 billion in revenue. The total revenue for the top 5 medical device manufacturers is $93.66 billion dollars. Medtronic’s total revenue of $16.20 billion divided by $93.66 billion dollars = .1729 or 17.3% of the total…show more content…
The quick ratio for Medtronic is 3.497, Stryker’s quick ratio is 1.46 (CSI Market, 2014).The total liabilities of Medtronic are $18.5 billion and the total assets are $37.9 billion. The debt to total asset ratio for Medtronic is .488 or 48.8%. The cost of goods sold for Medtronic is $3.689 billion and the average inventory of Medtronic is $1.764 billion, consequently the inventory turnover ratio of Medtronic is $3.689 billion/$1.764 billion = 2.091.The accounts receivable turnover ratio is 4.58 (CSI Market, 2014). The return on equity of Medtronic is 16.18%. The price to earnings ratio of Medtronic is 16.68 (Y-Charts, 2014). A share of Medtronic stock costs $63.25. All of this information indicates that Medtronic is a financially stable company. Medtronic has had steady growth for the last 5 years, it is making money at a decent rate, it pays a comparable dividend yield, and there are no financial disadvantages concerning Medtronic when it is compared to other medical device manufacturers. Medtronic’s sales revenues continue to grow, from $15.8 billion in 2010 to $16.2 billion in 2013. The pay out of its dividends has also increased over the past three years from $.82 per share to $1.12 per
Open Document