Medtronic PLC (MDT)

Liquidity ratios

Apr 26, 2024 Jan 26, 2024 Oct 27, 2023 Jul 28, 2023 Apr 28, 2023 Jan 27, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 Apr 24, 2020 Jan 24, 2020 Oct 25, 2019 Jul 26, 2019
Current ratio 2.03 2.30 2.29 2.42 2.39 1.76 1.76 1.58 1.86 2.61 2.91 2.89 2.65 2.10 2.16 1.87 2.13 2.75 2.77 2.67
Quick ratio 1.31 1.46 1.42 1.51 1.54 1.18 1.18 1.01 1.30 1.87 2.07 2.06 1.91 1.58 1.63 1.37 1.50 2.05 2.02 1.95
Cash ratio 0.74 0.85 0.80 0.87 0.88 0.77 0.79 0.63 0.85 1.26 1.37 1.36 1.27 1.17 1.18 0.99 1.06 1.33 1.27 1.25

Medtronic PLC's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 2 in recent quarters, indicating a strong liquidity position. However, there was a slight decrease in the current ratio in the most recent quarter compared to the previous ones.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a similar trend with values consistently above 1. This indicates that Medtronic has an adequate ability to meet its short-term obligations without relying heavily on inventory levels.

The cash ratio, which reflects the proportion of cash and cash equivalents to current liabilities, has shown a similar pattern of stability and strength, with values consistently above 1 in recent quarters. This signifies the company's ability to cover its current liabilities purely with its readily available cash resources.

Overall, the liquidity ratios of Medtronic PLC suggest that the company is well-positioned to meet its short-term financial obligations and has a strong liquidity position, although there have been slight variations over time that warrant monitoring and further analysis.

See also:

Medtronic PLC Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Apr 26, 2024 Jan 26, 2024 Oct 27, 2023 Jul 28, 2023 Apr 28, 2023 Jan 27, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 Apr 24, 2020 Jan 24, 2020 Oct 25, 2019 Jul 26, 2019
Cash conversion cycle days 109.84 123.60 121.75 119.63 110.67 120.82 113.40 105.35 102.15 104.92 103.64 103.59 104.18 115.09 115.60 113.14 99.57 113.15 110.71 108.20

The cash conversion cycle of Medtronic PLC, which represents the time it takes the company to convert its investments in inventory and other resources into cash flows from sales, has fluctuated over the past few years.

From the data provided, we can observe a range of days for the cash conversion cycle, with values ranging from a low of 99.57 days to a high of 123.60 days. This indicates that there have been variations in the efficiency of Medtronic's working capital management over time.

Analyzing the trend, we note that the cash conversion cycle decreased from January 2020 to April 2020, reaching its lowest point at 99.57 days. However, it increased steadily until January 2023, peaking at 123.60 days. Subsequently, there was a downward trend until July 2023, followed by some fluctuations in the cycle duration.

A shorter cash conversion cycle is typically viewed positively as it suggests that the company is efficient in managing its working capital and converting investments into cash quickly. Conversely, a longer cycle may indicate inefficiencies in inventory management, sales, or accounts receivable collection processes.

Overall, continuous monitoring and adjustments to operational processes could help Medtronic improve its cash conversion cycle, thereby enhancing its overall financial efficiency and liquidity management.