correction on accounting project

please fix the project to include the company’s 2022 Annual Report and Comparisons will be completed for years 2022 and 2021. Please double check all directions and rubric.

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Medtronic Corporation Financial Analysis
Student’s Name
Institution Affiliation
2
Table of Contents
Part 1: Medtronic Corporation ………………………………………………………………………………………………….. 3
Part 2: Horizontal and Vertical Analysis …………………………………………………………………………………….. 4
Medtronic Inc. Financial Statements Horizontal Analysis……………………………………………………………… 4
Medtronic Inc. Financial Statements Vertical Analysis …………………………………………………………………. 5
Part 4: Conclusion ………………………………………………………………………………………………………………………. 6
References ………………………………………………………………………………………………………………………………… 10
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Medtronic Corporation Financial Analysis
Part 1: Medtronic Corporation
A. What is the Internet address of the company?
The Medtronic plc internet address is https://www.medtronic.com/us-en/index.html. As such, by
using the address one is able to access company’s information on online platforms such as
Google.
B. Identify the stock exchange(s) where the company’s stock trades.
The Medtronic plc stocks are traded in the New York Stock Exchange (NYSE) (Bokros, 2023).
C. What is the ticker symbol of the company?
The ticker symbol for the Medtronic Corporation is MDT. As such, the company’s in the NYSE
are listed under the ticker symbol MDT (Bokros, 2023).
D. What is the name of the company’s independent accountants (auditing firm).
Medtronic’s independent auditing firm is PricewaterhouseCoopers LLP (Form
10-K, 2023).
E. What is the chief executive officer’s (CEO) name?
Medtronic CEO is Geoff Martha and he also serves as company’s Chairman.
F. Where is the home office located?
The company’s headquarters is located in Minneapolis, Minnesota.
G. Using your own words, write a description of the principal products and/or
services that the company provides.
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Medtronic, Inc. develops and markets device-based medical solutions around the world. It
sells prosthetic cardioverter-defibrillators, cardiac resynchronization therapy devices, and
cardiac pacemakers for the diagnosis, treatment, and management of heart rhythm problems
and heart failure, as well as AF products, diagnostics and monitoring equipment, and patient
management tools (Bokros, 2023).
H. What is the most recent price of the company’s stock? What is the date and
source ofthis price?
As per November 24th 2023, the company’s stock price was $78.97.
Source: https://finance.yahoo.com/quote/MDT/history?p=MDT
I. What is the most recent dividend paid? Was it for the quarter or for the year?
What is the date and source of this information?
The most recent dividend paid was $0.69 per share on Oct 13, 2023. The payment was for the
quarter.
Source: https://www.tipranks.com/stocks/mdt/dividends
Part 2: Horizontal and Vertical Analysis
Medtronic Inc. Financial Statements Horizontal Analysis
The horizontal analysis of the Medtronic income statement reveals that the company’s net sales
decreased by 1.4% in 2023. The decrease in net sales can be attributed to an increase in the cost
of goods sold in 2023 from 2022 by 5.7%. The analysis also reveals that the company underwent
restructuring in 2023, causing an increase in restructuring costs in 2023 of 535%. Also, the
horizontal analysis of the income statement reveals that the operating profit of the company
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decreased by 4.6% in 2023. Overall, the net income of the Medtronic Company decreased by
25.2% in 2023 when compared to its net income in 2023.
The horizontal analysis of the Medtronic balance sheet indicates the company’s total current
assets decreased by 6.0% in 2023. The decrease in current assets was caused mostly by a decline
in cash and cash equivalents, which declined by 58.5% during the same period. Another
noticeable change during the period is the increase in other assets, which increased by 31.6%.
Despite the changes in various assets, the total assets remained almost the same between 2022
and 2023. The horizontal analysis indicates that current liabilities will be reduced by 27.0% in
2023. However, the long-term debt increased by 19.5% in 2023. Another huge change that
occurred is that accrued income taxes increased by 13.1%, while deferred tax liabilities were
reduced by 19.9% in 2023. Also, in 2023, other liabilities increased by 22.7%, while total
liabilities increased by 2.7%. The analysis also indicates that total shareholder’s equity decreased
by 2.0% in 2023.
Medtronic Inc. Financial Statements Vertical Analysis
The vertical analysis of the Medtronic income statement reveals that the cost of products sold in
2022 and 2023 was 32% and 34% of the net sales, respectively. Also, the analysis indicates that
selling, general, and administrative expenses accounted for 33% of the net sales in 2023 and 32%
of the net sales in 2022. As well, the vertical analysis shows that the net income in 2023 was
12% of the net sales and 16% of the net sales in 2022.
The vertical analysis of the Medtronic balance sheet reveals that total current assets accounted
for 23.8% of the total assets in 2023 and 25.34% of the total assets in 2022. As well, the analysis
shows that the current liabilities accounted for 10.0% of the total assets in 2023 and 13.62% of
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the total assets in 2022. The vertical analysis also indicates that total liabilities and total equity
accounted for 43.2% and 56.8% of the total assets in 2023, respectively.
Part 4: Conclusion
1. Comment on your findings from the ratio analysis you performed in part #3
under Liquidity and Efficiency, Solvency, Profitability, and Market Prospects. Be
specific!
The current ratio reveals that Medtronic Corporation had more capabilities in the financial year
2022-2023 to meet short-term obligations compared to the financial year 2021-2022. This is
because the company had a higher current ratio in 2023 compared to 2022. The acid-test ratio
indicates that the company’s “quick assets” declined in 2023 compared to 2022.
The account receivable ratio shows an organization’s ability to manage customer credit. As such,
Medtronic Inc. managed customer credit better in 2021/2022 compared to 2022/2023. With an
account receivable ratio of 5, Medtronic Company is able to manage its customer credit well.
The company had a better inventory turnover ratio, day’s sales uncollected, and day’s sales in
inventory in 2022 compared to 2023.
The total asset turnover ratio reveals that the company was ineffective in utilizing its assets to
generate revenue. However, the company did better in utilizing the resources in 2021/2022
compared to 2022/2023.
The solvency ratios help measure an organization’s financial health. As such, the debt ratio
indicates that the company had higher debt in 2022/2023 compared to 2021/2022. Thus, 43.19%
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of the assets were funded by debt in 2022–2023, while the equity ratio indicates that 56.61% of
the assets were funded by equity during the same period. The debt-to-equity ratio reveals that the
company is more funded by equity than debt.
Medtronic Inc. has a better interest-earned ratio in 2022 compared to 2023. However, the ratio
reveals that the company is in a better position to take care of its debt.
The profit margin ratio shows the company’s ability to utilize net sales to generate income. The
company had a better profit margin ratio in 2022 compared to 2023. In 2022, for every dollar
sold, it will generate an income of $0.16.
The return on assets ratio indicates the company’s effectiveness in utilizing its assets to generate
income. As such, the company was more efficient in utilizing its assets to generate income in
2022 compared to 2023.
The return on common stockholder’s equity ratio indicates an organization’s capability to use its’
equity to generate income. As such, the company was more efficient in utilizing its equity to
generate income in 2022 compared to 2023. This is because in 2022, the company had a return
on equity ratio of 9.6%, compared to 7.3% in 2023.
The book value per common share of Medtronic was higher in 2022 compared to 2022, which is
the case for the basic earnings per share during the same period.
Medtronic Inc. had higher price-earnings ratio in 2023 compared to 2022. Also, the dividend
yield was higher in 2023 compared to 2022.
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2. Identify what you believe to be the three strongest aspects of the corporation.
These aspects are not necessarily financial in nature; they could refer to the
company’s competition, product, etc. Do you believe the corporation will be able
to maintain these strengths over the next few years? Why or why not?
Medtronic Inc.’s strong aspects include large current assets, low debt, and innovation. Thus, the
company has large current assets, implying that it has the financial capability to pay its’ shortterm debt and other obligations. Second, the company is in a better position financially because
most of its assets are funded by equity, implying a low cost of debt. Third, Medtronic’s
distinctive competitive advantage is its ability to innovate new products. Therefore, I believe the
company will be able to maintain these strengths over the next few years because of its growth
strategies and large number of patents.
3. Identify what you believe to be the three weakest aspects of the corporation. As
in question #2, these are not necessarily financial in nature; they could refer to
the company’s competition, product, etc. In what way might these weaknesses
be overcome?
The three weakest aspects of Medtronic Inc. include low inventory turnover, inefficiencies in
utilizing assets to generate sales, and poor product marketing. Thus, the company has a lower
inventory turnover, which results in increased inventory costs. Also, the company is
experiencing inefficiencies in utilizing its assets to generate revenue (Lubis, 2023). As well,
the company’s poor product marketing causes delays in turning inventories into sales.
Therefore, to overcome these weaknesses, the company management opts to come up with new
strategies that help optimize the use of its assets and ensure effective marketing.
4. Are you optimistic or pessimistic concerning the future of the corporation?
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What specific corporate or industry characteristics influence your opinion? This
question requires some research to order to identify some of the characteristics
that the company is facing with respect to its industry. Be sure to cite your
sources.
Based on the financial ratio analysis of the company, I am optimistic about the future of the
corporation. First, the company’s current ratio indicates that the company is in a better
position compared to its industry peers to meet its short-term obligations. Also, the company’s
assets are mostly funded by equity, which is not the case for its industry peers (Lubis, 2023).
This indicates that Medtronic has a better financial position due to less borrowing. As well,
internally, the company has an opportunity to utilize its assets in the future to generate more
income.
5. Would you invest in the capital stock of this corporation if you had sufficient
funds? To answerthis question, assume you made an investment in this
company in January 2010. Would your investment have increased or
decreased in value? Give specific data, including your ratio analysis.
If I had sufficient funds, I would invest in the capital stock of the Medtronic Corporation.
This is because, year after year, the company has continuously generated income for its
investors and shareholders. As such, if I had made the investment in January 2010, I would
have bought the stock at a price of $31.18, which would have increased to today’s stock value
of $78.97. Therefore, the investment would have increased by 153.27%.
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References
Bokros, J. (2023). Medtronic Inc. Project. In Heart of Carbon: The Story Behind the Pursuit of
the Perfect Mechanical Heart Valve (pp. 125-135). Cham: Springer International
Publishing.
Form 10-k . (2023). “Medtronic”
https://www.sec.gov/ix?doc=/Archives/edgar/data/1613103/000161310323000040/mdt20230428.htm
Lubis, S. S. (2023). Identify Financial Ratios to Measure The Company’s Financial
Performance. Journal of Economics Business Industry, 1(1), 1-9.
Medtronic plc (MDT) (n.d). “YahooFinance.com”
https://finance.yahoo.com/quote/MDT/financials?p=MDTLubis, S. S. (2023). Identify
Financial Ratios to Measure The Company’s Financial Performance. Journal of
Economics Business Industry, 1(1), 1-9.
Tipranks.com (n.d). “Medtronic (MDT) Dividend Date & History”
https://www.tipranks.com/stocks/mdt/dividends
Annual Report Project
Individual Project
Fall 2023
DUE– December 8, 2023
During this term, you will participate in an annual report project. With this project you will learn
everything you can about one company using its annual report, the internet, the press, stock market
results, and so on. There are four parts to this project. The four parts constitute the project and are
considered your final exam. Therefore, all four parts are required; none are optional. The completed
project is required for you to pass the class with a grade of C or higher. The due date is listed
above. You will submit the project via Canvas by 11:59pm on due date. The file name MUST include
your company name.Bus 120 and your class section number. For example,
MedTronic.Bus120sec52XX.
For this semester, choose one of the companies listed below:
LIST:
Corning, Inc.
MedTronic
Southern Copper Corporation
Thermo-Fischer
Archer Daniels
The Project:
The first part is simply answering general questions about the company. This part is to be completed
using Microsoft Word and is worth 10 points.
The next two parts deal with the analysis of the company’s financial statements. This analysis is
summarized in Chapter 13 – Interpreting Financial Statements of the text. You will be using Microsoft
Excel and Word for these. Each of these parts is worth 20 points The use of someone else’s template or
formulas is still considered cheating. Do your own work!
The last part is a set of conclusion question which you will complete using Microsoft Word. This part is
worth 50 points.
Submission Requirements:
All parts are to be submitted via Canvas on or before the deadline as stated in the syllabus and on
Canvas Calendar. You will be submitting THREE files: one PDF file that is the company’s annual report
that you got from their website, one MS Word file and one MS Excel file. Your work parts will only be
accepted in Excel and Word format. Google links and/or invitations will not be accepted as submission.
When completing parts in Excel, it is expected that you will use proper formulas in all areas necessary
or the part will not be accepted and will then be considered late.
Your name and company name must also be typed on the left-hand corner of each part or added as a
header. Failure to do so will result in automatic point deductions.
(Please note: If you do not have access to MS Word and MS Excel, complete it using Google Docs and
Google Sheets. When you “save” the document, save it as an MS Word document and an MS Excel
spreadsheet.)
Use APA 7th edition format. Times New Roman, 12-point font. Must have one-inch margins, no less, no
more. Must cite all sources used including in-text citations and include a reference page. Your project
must include proper headings, cover page, and a table of contents. You DO NOT need an executive
summary.
Due Date: 12/8/2023 @ 11:59pm – up to 100 points (Submit on Canvas)
Late submissions (anything after 11:59pm on 12/8/2023):
12/09/2023 – can earn up to 80 points
12/10/2023 – can earn up to 75 points
12/11/2023 – can earn up to 70 points
12/12/2023 – can earn up to 60 points
12/13/2023 – can earn up to 50 points
NO papers will be accepted after December 13, 2023.
Failure to follow the directions completely will result in automatic point deductions.
DUE DATE:
December 8, 2023 @ 11.59pm – Submit in Canvas – Module – Project
Summary of items to be completed:
1. Cover page (APA 7th edition) in MS Word
2. Table of contents (APA 7th edition) in MS Word – see link below for help
3. MS Word document for parts 1, explanations for part 2, and part 4 (APA 7 th
edition for in-text citations and general formatting)
4. MS Excel Document for parts 2 and parts 3
5. Reference page in MS Word (APA 7th edition) – see link below for help
APA 7th Edition Guidelines: General Format – Purdue OWL® – Purdue University
Free citation generator (it has ads): Citation Machine®: Format & Generate – APA, MLA, &
Chicago
Part 1: Complete using MS Word (You can create it in Google Docs, then save it as a Word
Doc to submit)
1.
2.
3.
4.
5.
First, identify the company that you are going to use from the list above.
Email me the company name to get approval. DO NOT start the project before you get approval.
Go to the company website
Go to Investor Relations – Look for 2022 Annual Report and/or 10-K
Download and save the company’s 2022 Annual Report (It must be 2022, other years will not be
accepted) – For comparison purposes you will use 2022 and 2021.
Answer the following questions. Be sure to type the question and letter (A, B, C, etc.) first, skip a
line, and type your response. Answer the questions using complete sentences and do not “lift”
information from the report. Plagiarism will result in a zero for any part in this project. For
information about plagiarism, go to http://www.georgetown.edu/honor/plagiarism.html.
A. What is the Internet address of the company?
B. Identify the stock exchange(s) where the company’s stock trades.
C. What is the ticker symbol of the company?
D. What is the name of the company’s independent accountants (auditing firm).
E. What is the chief executive officer’s (CEO) name?
F. Where is the home office located?
G. Using your own words, write a description of the principal products and/or services that
the company provides.
H. What is the most recent price of the company’s stock? What is the date and source of
this price?
I. What is the most recent dividend paid? Was it for the quarter or for the year? What is
the date and source of this information?
Use Microsoft Word to complete this part.
Part 2: Complete using MS Excel & Word (You can create in Google Docs and Google
Sheets, then save it as an MS Word doc for Google Docs and an Excel sheet from Google Sheets to
submit)
In this part, you will begin analyzing your company’s financial statements. You will begin by
preparing horizontal (comparative statements) and vertical (common-size statements) analyses.
Comment on variances you notice between the two years being reviewed. In the third part, you will
be preparing ratio analysis. SEE CHAPTER 13 OF YOUR TEXTBOOK.
There are three parts to this part. The first two parts are to be completed using Microsoft Excel. If you
are not familiar with Excel or you need a refresher, go to http://www.usd.edu/trio/tut/excel for a tutorial.
Be sure to use Excel formulas in the cells where you are making computations. Typing computational
results in the cells is not acceptable and will result in zero points. Also, your name and the company
name must be typed in the left-hand corner or added as a header on ALL pages. If any component is
missing it will result in automatic point deductions.
The third part is to be completed using Microsoft Word. Comment on your findings of the horizontal
and vertical analysis. Bullet statements, outlines, and so forth are not acceptable and will result in zero
points. Be sure that you use good grammar, sentence structure, etc.
Also make sure that your writing is businesslike and professional. Your answers should be clear, concise,
and complete. Lastly, make sure that your answers are your own. Plagiarism will result in zero points
(see http://www.georgetown.edu/honor/plagiarism.html for information). If you need help with your
writing, visit the English Writing Center (http://www.grossmont.net/tutoring/ewc.asp).
I.
II.
Using Excel, prepare comparative financial statements (Balance Sheet and Income Statement)
for the two most recent years. Round amounts to the nearest one-tenth of a percent. This
section is worth ten points.
Using Excel, prepare common-size statements (Balance Sheet and Income Statement) for the
two most recent years. This section is worth ten points.
Part 3: Complete using MS Excel (You can create in Google Sheets and then save as an Excel
sheet to submit)
In ARP part #2, you prepared horizontal and vertical analysis. In this part, you will prepare ratio
analysis. Refer to Chapter 13 of the text for a summary of the ratios. You should also refer to the
chapters where the ratios were originally covered in the text.
For the past two years (2022 and 2021), calculate the following using Excel. If you are not familiar with
Excel or you need a refresher, go to http://www.usd.edu/trio/tut/excel for a tutorial. Be sure to use Excel
formulas in the cells where you are making computations. Typing computational results in the cells is not
acceptable and will result in zero points. Failure to do so will be an automatic deduction of ten points.
Failure to have your name and company name typed in the left-hand corner or added as a header on every
page will result in point deductions. This part is worth twenty points.
Liquidity and Efficiency – ALL RATIOS are in Chapter 13 in your textbook or e-book (Exhibit 13.16)
a. Current ratio
b. Acid-test ratio
c. Accounts receivable turnover
d. Inventory turnover
e. Days’ sales uncollected
f. Days’ sales in inventory
g. Total asset turnover
Solvency
a. Debt ratio
b. Equity ratio
c. Debt-to-equity ratio
d. Times interest earned
Profitability
a. Profit margin ratio
b. Gross margin ratio
c. Return on total assets
d. Return on common stockholders’ equity
e. Book value per common share
f. Basic earnings per share
Market Prospects
a. Price-earnings ratio
b. Dividend yield
Part #4 – Conclusions: Complete using MS Word (You can create in Google docs and
then save as an MS Word doc to submit.)
Each question is worth 10 points. Think about this as you answer each one!
Be sure to type the question (and number…1, 2, etc.), skip a line, and type your response. Answer the
questions using complete sentences. Bullet statements, outlines, and so forth are not acceptable and will
result in zero points. Be sure that you use good grammar, sentence structure, etc. Also make sure that
your writing is businesslike and professional. Your answers should be clear, concise, and complete.
Lastly, make sure that your answers are your own. Plagiarism will result in zero points (see
http://www.georgetown.edu/honor/plagiarism.html for information). If you need help with your writing,
visit the English Writing Center (http://www.grossmont.net/tutoring/ewc.asp).
1. Comment on your findings from the ratio analysis you performed in part #3 under Liquidity and
Efficiency, Solvency, Profitability, and Market Prospects. Be specific!
2. Identify what you believe to be the three strongest aspects of the corporation. These aspects are
not necessarily financial in nature; they could refer to the company’s competition, product, etc.
Do you believe the corporation will be able to maintain these strengths over the next few years?
Why or why not?
3. Identify what you believe to be the three weakest aspects of the corporation. As in question #2,
these are not necessarily financial in nature; they could refer to the company’s competition,
product, etc. In what way might these weaknesses be overcome?
4. Are you optimistic or pessimistic concerning the future of the corporation? What specific
corporate or industry characteristics influence your opinion? This question requires some
research to order to identify some of the characteristics that the company is facing with respect to
its industry. Be sure to cite your sources.
5. Would you invest in the capital stock of this corporation if you had sufficient funds? To answer
this question, assume you made an investment in this company in January 2010. Would your
investment have increased or decreased in value? Give specific data, including your ratio
analysis.
Please follow the submission guidelines as set forth in the Annual Report Project document.
RUBRIC
Bus 120 – Annual Report Project
Great
Good
Neutral
Part 1 – 10 points
possible
All parts are answered
correctly and all sources
cited using APA 7th edition includes all in-text citations
and reference page – no
point deduction
All parts were answered,
mostly correct and all sources
cited using APA 7th edition includes all in-text citations
and reference page – no more
than 2 points deducted
All parts were answered, some
information was incorrect
and/or there are sources
missing (includes both in-text
citations and reference page
Answers are missing or incorrect,
using APA 7th edition) – no
sources are missing – could have a
more than 3 points deducted
4-10 point deduction
Part 2 – 20 points
possible
Comparable & Common-size Comparable & Common-size
statements provided
statements provided that are Comparable & Common-size
accurately and completely
mostly accurate and complete statements provided – some
and submitted in proper
and submitted in proper
information is missing or not
format. Fonts and numerical format. Fonts and numerical submitted in proper format.
Comparable & Common-size
data is formatted
data are mostly consistent – All Fonts and numerical data are statements provided – Information
consistently – all sources
sources cited using APA 7th
mostly consistent – All sources is missing or not submitted in
cited using APA 7th edition edition – includes all in-text
cited using APA 7th edition proper format. Fonts and
and includes all in-text
citations and reference page – includes all in-text citations and numerical data is not consistent – No sources cited or suspected
citations and reference page – no more than 2 points
reference page – no more than some sources cited – could have a 4- plagiarism. All points deducted
no point deduction
deducted
3 points deducted
10 points deduction
– a zero will be received
Part 3 – 20 points
possible
Ratios are provided,
accurate, proper format, cell
formulas are used. All
sources cited – no point
deduction
Ratios are provided, most are
accurate, proper format, cell
formulas are used. All sources
cited – no more than 4 points
deducted
Deficiencies
No grade
No sources cited or suspected
plagiarism. All points deducted
– a zero will be received
Ratios are provided, more than Ratios are missing, more than 30%
25% are incorrect, formatting is are incorrect, formatting is
consistent, cell formulas are
inconsistent, cell formulas are not No sources cited or suspected
used. All sources cited – no
used. All sources cited – could have plagiarism. All points deducted
more than 6 points deducted
7-20 point deduction
– a zero will be received
All questions have been
All questions have been
answered completely and
answered and are mostly
thoroughly, proper grammar complete, proper grammar
used and all sources cited
used and all sources cited
using APA 7th edition using APA 7th edition Part 4 – 50 points
includes all in-text citations includes all in-text citations
possible (10 points per and reference page – no
and reference page – up to 5
question)
point deduction
points deducted
All questions have been
answered but may be
incomplete, proper grammar
has not been used and all
sources cited using APA 7th
edition – includes all in-text
citations and reference page up to 10 points deducted
Late Policy (Partial
submissions are not
considered as
submitted until final
piece is turned in)
Project (Excel & Written
Project (Excel & Written
Analysis) 4 days late = up to 60
Analysis) 2 days late = up to 75 Project (Excel & Written Analysis) 3 points out of 100 available. No
points out of 100 available
days late = up to 70 points out of
projects accepted after this
based on rubric.
100 available based on rubric.
time.
On time – deductions taken
will be according to rubric
Project (Excel & Written
Analysis) 1 day late = up to 80
points out of 100 available
based on rubric.
Questions have not been answered
or are incomplete, proper grammar
has not been used and sources
No sources cited or suspected
cited may be incomplete or missing plagiarism. All points deducted
– up to 45 points deducted
– a zero will be received