Medtronic PLC (MDT)
Solvency ratios
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.30 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.42 | 0.00 |
| Financial leverage ratio | 1.79 | 1.79 | 1.77 | 1.77 | 1.73 |
Medtronic PLC's solvency ratios indicate a strong financial position with low leverage and minimal reliance on debt financing. The Debt-to-assets ratio has consistently remained at negligible levels, suggesting a high degree of asset coverage for any outstanding debts. The Debt-to-capital ratio also reflects minimal debt usage relative to the company's total capital structure over the analyzed period. Additionally, the Debt-to-equity ratio has consistently shown very low levels of debt in relation to shareholder equity.
The Financial leverage ratio has been relatively stable and indicates that the company's operations are mainly funded through equity rather than debt. This implies a lower risk of financial distress and the potential for greater financial flexibility in managing future investments or expenses. Overall, Medtronic PLC's solvency ratios highlight a prudent financial strategy focused on maintaining a healthy balance sheet and minimizing financial risk.
Coverage ratios
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 7.73 | 7.69 | 9.08 | 9.39 | 12.38 |
Based on the data provided for Medtronic PLC's interest coverage ratio, we observe a gradual decline over the period from April 30, 2022, to April 30, 2024. The interest coverage ratio decreased from 12.38 in April 2022 to 7.73 in April 2024.
A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations using its earnings before interest and taxes (EBIT). Conversely, a lower interest coverage ratio may suggest a potential inability to meet interest payments from operating profits alone.
The declining trend in Medtronic PLC's interest coverage ratio may raise concerns about the company's ability to comfortably cover its interest expenses in the future. It is essential for investors and creditors to monitor this ratio closely as it can indicate the financial health and risk profile of the company.