Comparison of Medtronic's Financial Statements to Baxter's Financial Statements
Medtronic 's Ratings
Earning Power
I would rank Medtronic 's earning power at a 9 on a scale of 1 (very weak) to 10 (very strong). Medtronic has successfully demonstrated their ability to grow and provide substantial return to their owners.
Medtronic 's net earnings have steadily increased from $984.0 million in 2002, to $1599.8 million in 2003, to $1959.3 million in 2004. Their total assets have increased 13.7% from $12,405.5 million in 2003 to $14,110.8 million in 2004. These measures show that Medtronic has been successful in generating profits and increasing their net assets. These measures have steadily been increasing and therefore this type of progress can reasonably be expected to persist in the future.
Total liabilities have also increased by 11.8% from $4,499.1 million in 2003 to $5,033.8 million in 2004. This can viewed as a way of financing the continued operations that support Medtronic 's success.
Medtronic paid $0.23 per share to owners in 2002. This amount equaled $278.8 million. In 2003, the company paid $0.25 per share, equal to $304.2 million. In 2004, the shareholders were paid $0.29 per share equaling $351.5 million. These amounts show that Medtronic has been paying substantial returns to its owners, and they have also been increasing the dividends paid per share.
Medtronic 's gross profit has increased from $4758.1 in 2002, to $5774.9 to 2003, to $6834.3 in 2004. The gross margin in 2004 was 75% showing that the selling price of the inventory exceeds the cost by 75%. This shows that Medtronic has been steadily earning profits from the sales of their products and services. Also, the receivable account was turned over 4.84 times in 2004 meaning that Medtronic has been receiving payment from its debtors and earning profits this way as well.
When looking at two of the profitability ratios, the return on equity and the return on assets, as compared to other leading companies in the industry, we can see that Medtronic is doing very
Earning Power
I would rank Medtronic 's earning power at a 9 on a scale of 1 (very weak) to 10 (very strong). Medtronic has successfully demonstrated their ability to grow and provide substantial return to their owners.
Medtronic 's net earnings have steadily increased from $984.0 million in 2002, to $1599.8 million in 2003, to $1959.3 million in 2004. Their total assets have increased 13.7% from $12,405.5 million in 2003 to $14,110.8 million in 2004. These measures show that Medtronic has been successful in generating profits and increasing their net assets. These measures have steadily been increasing and therefore this type of progress can reasonably be expected to persist in the future.
Total liabilities have also increased by 11.8% from $4,499.1 million in 2003 to $5,033.8 million in 2004. This can viewed as a way of financing the continued operations that support Medtronic 's success.
Medtronic paid $0.23 per share to owners in 2002. This amount equaled $278.8 million. In 2003, the company paid $0.25 per share, equal to $304.2 million. In 2004, the shareholders were paid $0.29 per share equaling $351.5 million. These amounts show that Medtronic has been paying substantial returns to its owners, and they have also been increasing the dividends paid per share.
Medtronic 's gross profit has increased from $4758.1 in 2002, to $5774.9 to 2003, to $6834.3 in 2004. The gross margin in 2004 was 75% showing that the selling price of the inventory exceeds the cost by 75%. This shows that Medtronic has been steadily earning profits from the sales of their products and services. Also, the receivable account was turned over 4.84 times in 2004 meaning that Medtronic has been receiving payment from its debtors and earning profits this way as well.
When looking at two of the profitability ratios, the return on equity and the return on assets, as compared to other leading companies in the industry, we can see that Medtronic is doing very