Medtronic PLC (MDT)
Liquidity ratios
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Current ratio | 1.85 | 2.03 | 2.03 | 2.39 | 2.39 |
| Quick ratio | 1.20 | 1.31 | 1.31 | 1.54 | 1.54 |
| Cash ratio | 0.70 | 0.74 | 0.74 | 0.88 | 0.88 |
Based on the provided data, Medtronic PLC's liquidity ratios have shown a slight decline over the years. The current ratio remained relatively stable at around 2.39 in April 2023 and 2024 but decreased to 1.85 in April 2025. This indicates that the company may have slightly less short-term assets to cover its current liabilities in 2025 compared to previous years.
Similarly, the quick ratio, which excludes inventory from current assets, also decreased from 1.54 in April 2023 and 2024 to 1.20 in April 2025. This suggests that the company may have a lower ability to meet its short-term obligations using its most liquid assets.
Furthermore, the cash ratio, which reflects the firm's ability to cover its current liabilities with cash and cash equivalents, decreased from 0.88 in April 2023 to 0.70 in April 2025. This indicates a decreasing trend in the company's cash position relative to its current liabilities over the years.
Overall, the declining trend in these liquidity ratios may raise some concerns about Medtronic PLC's short-term liquidity position and its ability to meet its obligations with its current assets. Investors and stakeholders may monitor this trend closely to assess the company's liquidity risk and financial health.
See also:
Additional liquidity measure
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 70.91 | 160.46 | 109.84 | 159.70 | 110.48 |
The cash conversion cycle of Medtronic PLC has shown fluctuations over the years based on the provided data.
- On April 28, 2023, the cash conversion cycle was 110.48 days, indicating that the company took approximately 110 days to convert its resource inputs into cash flows.
- By April 30, 2023, the cycle had increased to 159.70 days, suggesting a longer period for Medtronic PLC to convert its investments into cash.
- However, there was a notable improvement by April 26, 2024, with the cycle decreasing to 109.84 days, indicating a more efficient conversion of resources into cash flows.
- This improvement was short-lived as by April 30, 2024, the cycle increased to 160.46 days, indicating a prolonged period for the conversion of resources to cash.
- A significant positive change was observed by April 30, 2025, with the cash conversion cycle standing at 70.91 days, signifying a substantial improvement in the efficiency of Medtronic PLC's operations in converting investments into cash.
Overall, the data highlights the importance of monitoring and managing the cash conversion cycle to ensure optimal efficiency and cash flow management in Medtronic PLC.