Income Statement Analysis
An income statement is a financial statement that measures a company 's financial performance over a specific accounting period. The company’s financial performance is measured by giving a summarization of how the business incurs its revenues and expenses through both operating and non-operating activities. Medtronic’s total revenue for the last three years were: $17, billion for 2014, $16.59 billion for 2013, and $16.184 billion for 2012. It’s total operating expenses for the last three years were: $8.678 billion for 2014, $7.954 billion for 2013, and $7.637 billion for 2012 (Yahoo, 2014). Income statements also show the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter …show more content…
The earnings per share for Medtronic are $1.12 (Business Week, 2014). The income statement is divided into two portions: the operating and non-operating portion. The operating portion of the income statement is interesting to managers and investors; it reveals information concerning revenues and expenses that are a result of regular business operations. Medtronic’s total revenue has been steadily increasing in the last three years; it has increased by $821million However, the total cost of revenue increased by $1.04 billion. The non-operating section of the income statement reveals incomes and expenses that are not linked to a company’s normal business activities, such as: the sale of a factory and its equipment (Raiborn, 2010). April 27, 2012, Medtronic reported $200, 000 profit from discontinued operations, it has …show more content…
For example, Johnson & Johnson possesses $27.43 billion in total revenue; GE Healthcare generated $18.29 billion in revenue, Siemens Healthcare earned $17.54 billion, Medtronic made $16.20 billion in total revenue, and Baxter International gained $14.20 billion in revenue. The total revenue for the top 5 medical device manufacturers is $93.66 billion dollars. Medtronic’s total revenue of $16.20 billion divided by $93.66 billion dollars = .1729 or 17.3% of the total market share (MPO, 2013). The cost of goods sold for Medtronic is $3.689 billion and the total revenue of Medtronic is $16.2 billion. The cost of goods sold to total revenue ratio for Medtronic is $3.689billion /$16.2 billion = .227 or 22.7%. This ratio is important, it reveals a company’s ability to pay expenses and save for the future. The current assets of Medtronic are $21.21 billion dollars and its current liabilities are $5.57 billion. Consequently, the current ratio for Medtronic is 3.8 to 1. The current assets for Medtronic are $21.21 billion dollars, the total inventory for Medtronic is $1.73 billion dollars, and the total current liabilities for Medtronic is $5.57 billion dollars, thus the quick ratio for Medtronic is ($21.21
An income statement is a financial statement that measures a company 's financial performance over a specific accounting period. The company’s financial performance is measured by giving a summarization of how the business incurs its revenues and expenses through both operating and non-operating activities. Medtronic’s total revenue for the last three years were: $17, billion for 2014, $16.59 billion for 2013, and $16.184 billion for 2012. It’s total operating expenses for the last three years were: $8.678 billion for 2014, $7.954 billion for 2013, and $7.637 billion for 2012 (Yahoo, 2014). Income statements also show the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter …show more content…
The earnings per share for Medtronic are $1.12 (Business Week, 2014). The income statement is divided into two portions: the operating and non-operating portion. The operating portion of the income statement is interesting to managers and investors; it reveals information concerning revenues and expenses that are a result of regular business operations. Medtronic’s total revenue has been steadily increasing in the last three years; it has increased by $821million However, the total cost of revenue increased by $1.04 billion. The non-operating section of the income statement reveals incomes and expenses that are not linked to a company’s normal business activities, such as: the sale of a factory and its equipment (Raiborn, 2010). April 27, 2012, Medtronic reported $200, 000 profit from discontinued operations, it has …show more content…
For example, Johnson & Johnson possesses $27.43 billion in total revenue; GE Healthcare generated $18.29 billion in revenue, Siemens Healthcare earned $17.54 billion, Medtronic made $16.20 billion in total revenue, and Baxter International gained $14.20 billion in revenue. The total revenue for the top 5 medical device manufacturers is $93.66 billion dollars. Medtronic’s total revenue of $16.20 billion divided by $93.66 billion dollars = .1729 or 17.3% of the total market share (MPO, 2013). The cost of goods sold for Medtronic is $3.689 billion and the total revenue of Medtronic is $16.2 billion. The cost of goods sold to total revenue ratio for Medtronic is $3.689billion /$16.2 billion = .227 or 22.7%. This ratio is important, it reveals a company’s ability to pay expenses and save for the future. The current assets of Medtronic are $21.21 billion dollars and its current liabilities are $5.57 billion. Consequently, the current ratio for Medtronic is 3.8 to 1. The current assets for Medtronic are $21.21 billion dollars, the total inventory for Medtronic is $1.73 billion dollars, and the total current liabilities for Medtronic is $5.57 billion dollars, thus the quick ratio for Medtronic is ($21.21