Medtronic plc - Consolidated Statements of Income Fiscal Year 2015 2014 2013 (in
ID: 2335572 • Letter: M
Question
Medtronic plc - Consolidated Statements of Income
Fiscal Year
2015
2014
2013
(in millions, except per share data)
Net sales
$
20,261
$
17,005
$
16,590
Costs and expenses:
Cost of products sold
6,309
4,333
4,126
Research and development expense
1,640
1,477
1,557
Selling, general, and administrative expense
6,904
5,847
5,698
Special (gains) charges, net
(38
)
40
—
Restructuring charges, net
237
78
172
Certain litigation charges, net
42
770
245
Acquisition-related items
550
117
(49
)
Amortization of intangible assets
733
349
331
Other expense, net
118
181
108
Operating profit
3,766
3,813
4,402
Interest income
(386
)
(271
)
(237
)
Interest expense
666
379
388
Interest expense, net
280
108
151
Income from operations before income taxes
3,486
3,705
4,251
Provision for income taxes
811
640
784
Net income
$
2,675
$
3,065
$
3,467
Basic earnings per share
$
2.44
$
3.06
$
3.40
Diluted earnings per share
$
2.41
$
3.02
$
3.37
Basic weighted average shares outstanding
1,095.5
1,002.1
1,019.3
Diluted weighted average shares outstanding
1,109.0
1,013.6
1,027.5
Cash dividends declared per ordinary share
$
1.22
$
1.12
$
1.04
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
April 24,
2015
April 25,
2014
(in millions, except per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
4,843
$
1,403
Investments
14,637
12,838
Accounts receivable, less allowances of $144 and $115, respectively
5,112
3,811
Inventories
3,463
1,725
Tax assets
1,335
736
Prepaid expenses and other current assets
1,454
697
Total current assets
30,844
21,210
Property, plant, and equipment, net
4,699
2,392
Goodwill
40,530
10,593
Other intangible assets, net
28,101
2,286
Long-term tax assets
774
300
Other assets
1,737
1,162
Total assets
$
106,685
$
37,943
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings
$
2,434
$
1,613
Accounts payable
1,610
742
Accrued compensation
1,611
1,015
Accrued income taxes
935
164
Deferred tax liabilities
119
19
Other accrued expenses
2,464
2,006
Total current liabilities
9,173
5,559
Long-term debt
33,752
10,315
Long-term accrued compensation and retirement benefits
1,535
662
Long-term accrued income taxes
2,476
1,343
Long-term deferred tax liabilities
4,700
386
Other long-term liabilities
1,819
235
Total liabilities
53,455
18,500
Commitments and contingencies (Notes 2, 14, and 16)
Shareholders’ equity:
Ordinary shares— par value $0.0001, $0.10; 2.6 billion,1.6 billion shares authorized, 1,421,648,005 and 998,999,125 shares issued and outstanding, respectively
—
100
Retained earnings
54,414
19,940
Accumulated other comprehensive loss
(1,184
)
(597
)
Total shareholders’ equity
53,230
19,443
Total liabilities and shareholders’ equity
$
106,685
$
37,943
The accompanying notes are an integral part of these consolidated financial statements.
65
What is the inventory turn ratio for the fiscal year 2015? Show your answer to three decimal places.
When comparing the fiscal year 2015 with the fiscal year 2014, by what percent did Goodwill increase?
What is the provision for income taxes as a percent of income from operations before income taxes?
What is long-term debt as a percent of total assets for 2015? Express your percent as whole and decimal amounts.
What is cost of goods sold as a percent of total sales for 2015? Format your number in terms of percent.
Fiscal Year
2015
2014
2013
(in millions, except per share data)
Net sales
$
20,261
$
17,005
$
16,590
Costs and expenses:
Cost of products sold
6,309
4,333
4,126
Research and development expense
1,640
1,477
1,557
Selling, general, and administrative expense
6,904
5,847
5,698
Special (gains) charges, net
(38
)
40
—
Restructuring charges, net
237
78
172
Certain litigation charges, net
42
770
245
Acquisition-related items
550
117
(49
)
Amortization of intangible assets
733
349
331
Other expense, net
118
181
108
Operating profit
3,766
3,813
4,402
Interest income
(386
)
(271
)
(237
)
Interest expense
666
379
388
Interest expense, net
280
108
151
Income from operations before income taxes
3,486
3,705
4,251
Provision for income taxes
811
640
784
Net income
$
2,675
$
3,065
$
3,467
Basic earnings per share
$
2.44
$
3.06
$
3.40
Diluted earnings per share
$
2.41
$
3.02
$
3.37
Basic weighted average shares outstanding
1,095.5
1,002.1
1,019.3
Diluted weighted average shares outstanding
1,109.0
1,013.6
1,027.5
Cash dividends declared per ordinary share
$
1.22
$
1.12
$
1.04
Explanation / Answer
Inventory Turnover Ratio (2015) = Cost of goods sold / average inventory
average inventory : ( opening inventory + closing inventory )/2
now, Cost of goods sold $ 6309 and opening inventory = 1725, closing inventor = 3463, = average inventory = 1725+ 3463 =5188/2 = 2594
now, putting into the formula = 6309/2594 = 2.432
2. 2014 goodwill = 10,593
2015 goodwill = 40,530
% increase in goodwill = 2015-2014/2014 *100
40,530- 10,593/10593 *100 = 282.611%
3. income tax as a %age of operations before income and taxes.
firstly to arrive at operations before income and tax :
= Income from operations before income tax + interest = 3,486 + 280=3,766
now, tax = 811
811/3766*100 = 23.28%
4. long-term debt 2015 = 33,752
total assets 2015 = 106685
%age = 33752 /106685*100 = 31.637%
5. cost of goods sold 2015 = 6,309
total sale 2015 = 20,261
%age = 6309/20261*100 = 31.138%.