Medtronic
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | MDT | Checked against | |
|---|---|---|---|
| Owner earnings | $5.86bn | positive | ✓ |
| Return on equity | 9.7% | median 11.7% | ✗ |
| Debt to equity | 0.57x | median 0.79x | ✓ |
| Operating margin | 17.8% | median 15.0% | ✓ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | MDT | Checked against | |
|---|---|---|---|
| Return on capital employed | 8.4% | median 10.1% | ✗ |
| Cash conversion | 1.53x | median 1.78x | ✗ |
| Operating margin | 17.8% | median 15.0% | ✓ |
| Debt to equity | 0.57x | median 0.79x | ✓ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/3
| Measure | MDT | Checked against | |
|---|---|---|---|
| Return on capital employed | 8.4% | median 10.1% | ✗ |
| Return on equity | 9.7% | median 11.7% | ✗ |
| Operating margin | 17.8% | median 15.0% | ✓ |
Passes 1 of 3. To be clear: Charlie Munger has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/4
| Measure | MDT | Checked against | |
|---|---|---|---|
| Return on equity | 9.7% | median 11.7% | ✗ |
| Debt to equity | 0.57x | median 0.79x | ✓ |
| Cash conversion | 1.53x | median 1.78x | ✗ |
| Return on equity, sustained | 0 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 4. To be clear: Chuck Akre has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/4
| Measure | MDT | Checked against | |
|---|---|---|---|
| Operating margin | 17.8% | median 15.0% | ✓ |
| Net margin | 13.2% | median 10.2% | ✓ |
| Return on capital employed | 8.4% | median 10.1% | ✗ |
| Operating margin, held or improving | 17.8% | 10-yr median 17.8% | ✓ |
Passes 3 of 4. To be clear: Philip Fisher has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | MDT | Checked against | |
|---|---|---|---|
| Current ratio | 2.13x | median 1.25x | ✓ |
| Debt to equity | 0.57x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 2/3
| Measure | MDT | Checked against | |
|---|---|---|---|
| Current ratio | 2.13x | 2.00x published | ✓ |
| Long-term debt to working capital | 1.99x | 1.00x published | ✗ |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 2 of 3. To be clear: Benjamin Graham has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | MDT | Checked against | |
|---|---|---|---|
| Return on capital employed | 8.4% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 2/2
| Measure | MDT | Checked against | |
|---|---|---|---|
| Debt to equity | 0.57x | median 0.79x | ✓ |
| Net margin | 13.2% | median 10.2% | ✓ |
Passes 2 of 2. To be clear: Peter Lynch has never said anything about Medtronic. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 76.1% | whyThe figure most screeners publish. |
| Operating cash flow | 49.6% | whyBefore capital spending. |
| Free cash flow | 67.1% | whyAfter maintaining the business. |
Spread between highest and lowest: 26.5 percentage points. Same filings, different denominators.
Coverage rating 51 / 100 — Tight. ? Peer standing 7/50Direction 25/30Stability 19/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2026-04-24 | 67.1% |
| 2025-04-25 | 69.2% |
| 2024-04-26 | 70.5% |
| 2023-04-28 | 79.0% |
| 2022-04-29 | 56.6% |
| 2021-04-30 | 63.9% |
Coverage has improved three years running, 79.0% to 67.1%.
13% of the 38 health care here pay out more — at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $2.84 ÷ diluted EPS $3.73
- Operating cash flow — dividends paid $3,639m ÷ operating cash flow $7,330m
- Free cash flow — dividends paid $3,639m ÷ (operating cash flow $7,330m − capex $1,904m)
Where the figures came from
- 10-K filed 2026-06-18 · accession 0001628280-26-044354
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Medtronic files. The monthly letter carries what filed, what moved, and one finding computed across every company here.