Medtronic PLC (MDT)
Quick ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 6,515,000 | 6,128,000 | 6,128,000 | 5,998,000 | 5,998,000 |
| Total current liabilities | US$ in thousands | 12,879,000 | 10,789,000 | 10,789,000 | 9,051,000 | 9,051,000 |
| Quick ratio | 1.20 | 1.31 | 1.31 | 1.54 | 1.54 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,218,000K
+ $6,747,000K
+ $6,515,000K)
÷ $12,879,000K
= 1.20
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Medtronic PLC, the quick ratio has been relatively stable over the years, ranging from 1.20 to 1.54.
A quick ratio of 1.0 or higher is generally considered healthy as it indicates that the company can cover its current liabilities with its quick assets. Medtronic's quick ratio consistently above 1.0 reflects its strong liquidity position and ability to meet short-term financial commitments without relying heavily on inventory.
However, the slight decline in the quick ratio from 1.54 to 1.20 over the period indicates a decreasing ability to cover short-term obligations with highly liquid assets. While the quick ratio is still above 1.0, indicating a sufficient buffer, it is important for Medtronic to monitor its liquidity position and manage its working capital effectively to ensure continued financial stability.
Peer comparison
Apr 30, 2025