Medtronic PLC (MDT)
Interest coverage
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 5,556,000 | 5,528,000 | 5,778,000 | 5,974,000 |
| Interest expense | US$ in thousands | 729,000 | 719,000 | 719,000 | 636,000 | 636,000 |
| Interest coverage | 0.00 | 7.73 | 7.69 | 9.08 | 9.39 |
April 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $729,000K
= 0.00
Based on the data provided, the interest coverage ratio for Medtronic PLC has shown a declining trend over the years. In April 2023, the interest coverage ratio was 9.39, indicating that the company was able to cover its interest expenses 9.39 times with its operating profits. However, by April 2025, the interest coverage ratio had dropped to 0.00, suggesting that the company's operating profits were insufficient to cover its interest expenses.
This declining trend in the interest coverage ratio raises concerns about Medtronic PLC's ability to meet its interest obligations in the future. A low or decreasing interest coverage ratio can indicate financial distress and may make it more challenging for the company to obtain favorable financing terms. Investors and creditors may view a declining interest coverage ratio as a red flag, prompting further analysis of the company's financial health and sustainability.
Peer comparison
Apr 30, 2025