Is the business good?
How good a business is MDT?
Medtronic earns 7.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.5%
Return on invested capital · cost of capital 9.0% · 1.5 points below what the capital costs: growth destroys value
- Operating margin
- 18%
Operating margin · Medical Devices median 11% · 12 months to Q4 2026
- Cash conversion
- 1.13×
Cash conversion · 1.11× a year ago · every dollar of reported profit arrived as cash, and more
- R&D as % of revenue
- 7.9%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 15% |
| FY2022 | 18% |
| FY2023 | 18% |
| FY2024 | 16% |
| FY2025 | 18% |
| FY2026 | 18% |
Details›
- Gross margin12 months to Q4 2026
- 65%
- Operating margin12 months to Q4 2026
- 18%
- Net margin12 months to Q4 2026
- 13%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 7.9%
- Revenue, trailing twelve months
- $36.4B
- Free cash flow, trailing twelve months
- $5.43B
- Net income, trailing twelve months
- $4.80B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Devices
Ranks #11 of 35 by Smart Score