The business behind the dividend
| Measure | MDT | Median | Formula |
|---|---|---|---|
| Return on equity | 9.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 8.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $5.86bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $5.43bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 17.8% | 15.0% | Operating income ÷ revenue |
| Net margin | 13.2% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.57x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 9.04x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 2.13x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.99x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.53x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.7% | 9.7% | 7.3% | 7.3% | 9.6% | 7.0% | 9.4% | 9.2% | 6.1% | 8.0% | 8.0% |
| Return on capital employed | 8.4% | 7.8% | 6.8% | 7.2% | 7.5% | 5.8% | 6.3% | 8.3% | 8.7% | 6.4% | 7.2% |
| Operating margin | 17.8% | 17.8% | 15.9% | 17.6% | 18.2% | 14.9% | 16.6% | 20.5% | 22.2% | 18.1% | 17.8% |
| Net margin | 13.2% | 13.9% | 11.4% | 12.0% | 15.9% | 12.0% | 16.6% | 15.2% | 10.4% | 13.6% | 13.2% |
| Debt to equity | 0.57x | 0.59x | 0.50x | 0.47x | 0.46x | 0.51x | 0.49x | 0.51x | 0.51x | 0.66x | 0.51x |
| Current ratio | 2.13x | 1.85x | 2.03x | 2.39x | 1.86x | 2.65x | 2.13x | 2.59x | 2.28x | 1.74x | 2.13x |
| Cash conversion | 1.53x | 1.51x | 1.85x | 1.61x | 1.46x | 1.73x | 1.51x | 1.51x | 1.51x | 1.71x | 1.51x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Medtronic pays out less than 5 of them. The median for that group is 39.3%, against this company’s 67.1%.
Closest on free cash flow
- Johnson & Johnson (JNJ) 62.9%
- Amgen (AMGN) 63.3%
- AbbVie (ABBV) 65.4%
- Merck (MRK) 66.1%
Same sector and same denominator, so the figures are comparable. All 44 in health care →