Medtronic PLC (MDT)
Interest coverage
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,528,000 | 5,974,000 | 6,048,000 | 4,796,000 | 5,130,000 |
| Interest expense | US$ in thousands | 719,000 | 636,000 | 553,000 | 925,000 | 1,092,000 |
| Interest coverage | 7.69 | 9.39 | 10.94 | 5.18 | 4.70 |
April 26, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,528,000K ÷ $719,000K
= 7.69
The interest coverage ratio for Medtronic PLC has shown fluctuating trends over the past five years. In April 2024, the interest coverage ratio was 7.69, which indicates that the company generated enough operating income to cover its interest expenses 7.69 times. This ratio has decreased compared to the previous year (9.39 in April 2023), suggesting a potential decrease in the company's ability to cover interest payments.
Looking further back, in April 2022 and 2021, Medtronic PLC had higher interest coverage ratios of 10.94 and 5.18, respectively. The significant increase in 2022 might indicate improved financial health and reduced financial risk. However, the drop in 2021 suggests that the company may have faced challenges in generating sufficient operating income to cover interest expenses.
In April 2020, the interest coverage ratio was 4.70, indicating a relatively weaker ability to cover interest payments. Overall, the fluctuating trend in Medtronic PLC's interest coverage ratio over the five-year period suggests varying degrees of financial stability and risk management. It is essential for stakeholders to closely monitor the company's interest coverage ratio to assess its financial health and ability to meet debt obligations in the future.
Peer comparison
Apr 26, 2024