Medtronic PLC (MDT)

Cash ratio

Apr 30, 2025 Apr 30, 2024 Apr 26, 2024 Apr 30, 2023 Apr 28, 2023
Cash and cash equivalents US$ in thousands 2,218,000 1,284,000 1,284,000 1,543,000 1,543,000
Short-term investments US$ in thousands 6,747,000 6,721,000 6,721,000 6,416,000 6,416,000
Total current liabilities US$ in thousands 12,879,000 10,789,000 10,789,000 9,051,000 9,051,000
Cash ratio 0.70 0.74 0.74 0.88 0.88

April 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,218,000K + $6,747,000K) ÷ $12,879,000K
= 0.70

The cash ratio for Medtronic PLC has shown a gradual decrease over the years from 0.88 in April 2023 to 0.70 in April 2025. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has slightly weakened. While a cash ratio above 1.0 is generally considered healthy, the company's ratios fall below this threshold, suggesting a potential liquidity concern. It would be prudent for Medtronic PLC to closely monitor its liquidity position to ensure it can meet its short-term obligations effectively.


See also:

Medtronic PLC Cash Ratio