Medtronic's net income decline in Q4 2024 can be attributed to several key factors:
- Higher Costs of Goods Sold and Interest Expenses: Despite a slight increase in net sales from $31.7 billion in fiscal 2022 to $32.4 billion in 2024, the net income decreased from $5 billion to $3.7 billion. This decline is primarily due to higher costs of goods sold and interest expenses1.
- Foreign Currency Impact: The company has faced challenges due to foreign currency fluctuations, which have impacted both its gross and operating margins. This has been a recurring issue, as evidenced by the decline in gross margin from 65.2% in the previous quarter to 64.5% in Q2 2025, and the operating margin decline due to FX23.
In summary, Medtronic's net profit decline in Q4 2024 is largely a result of higher costs and foreign currency challenges.
3/30/2025 09:11am
