Medtronic PLC (MDT)
Quick ratio
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,284,000 | 1,543,000 | 3,714,000 | 3,593,000 | 4,140,000 |
| Short-term investments | US$ in thousands | 6,721,000 | 6,416,000 | 6,859,000 | 7,224,000 | 6,808,000 |
| Receivables | US$ in thousands | 6,128,000 | 5,998,000 | 5,551,000 | 5,462,000 | 4,645,000 |
| Total current liabilities | US$ in thousands | 10,789,000 | 9,051,000 | 12,394,000 | 8,509,000 | 10,366,000 |
| Quick ratio | 1.31 | 1.54 | 1.30 | 1.91 | 1.50 |
April 26, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,284,000K
+ $6,721,000K
+ $6,128,000K)
÷ $10,789,000K
= 1.31
The quick ratio of Medtronic PLC has fluctuated over the past five years, ranging from a low of 1.30 in April 2022 to a high of 1.91 in April 2021. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
In April 2024, the quick ratio stood at 1.31, indicating a slight decrease from the previous year but still above the acceptable threshold of 1. A quick ratio of 1.31 suggests that Medtronic PLC has $1.31 in easily accessible assets for every $1 of current liabilities, which provides a reasonable level of liquidity to meet its short-term obligations.
It is important to continue monitoring the trend of the quick ratio to ensure that Medtronic PLC maintains a healthy level of liquidity to support its ongoing operations and financial stability.
Peer comparison
Apr 26, 2024