Medtronic PLC (MDT)

Debt-to-capital ratio

		Apr 30, 2025	Apr 30, 2024	Apr 26, 2024	Apr 30, 2023	Apr 28, 2023
Long-term debt	US$ in thousands	—	—	—	—	21,700,000
Total stockholders’ equity	US$ in thousands	48,024,000	50,214,000	50,214,000	51,483,000	51,483,000
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.30

April 30, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $48,024,000K)
= 0.00

The debt-to-capital ratio of Medtronic PLC has shown a decreasing trend over the years, indicating a healthier financial position. As of April 28, 2023, the ratio stood at 0.30, implying that 30% of the company's capital structure was financed through debt. However, by April 30, 2023, and subsequently for the years up to April 30, 2025, the ratio dropped to 0.00, suggesting that the company's capital structure was entirely financed by equity during these periods.

This significant decrease in the debt-to-capital ratio reflects a reduced reliance on debt financing, which can be viewed positively by investors and creditors as it indicates lower financial risk and potential for financial distress. It shows that Medtronic PLC has been making efforts to strengthen its balance sheet by lowering its debt levels relative to its total capital, potentially enhancing its financial stability and resilience to economic downturns.

Overall, the trend of decreasing debt-to-capital ratio for Medtronic PLC highlights a prudent capital structure management strategy, positioning the company favorably in terms of financial health and risk management.