Medtronic PLC (MDT)
Interest coverage
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,871,000 | 6,715,000 | 6,051,000 | 5,834,000 | 6,093,000 | 5,787,000 | 6,225,000 | 6,093,000 | 5,787,000 | 5,987,000 | 6,224,000 | 6,347,000 | 6,543,000 | 6,202,000 | 5,978,000 | 5,607,000 | 5,277,000 | 5,717,000 | 5,951,000 | 6,421,000 |
| Interest expense (ttm) | US$ in thousands | 729,000 | 757,000 | 780,000 | 759,000 | 780,000 | 758,000 | 736,000 | 696,000 | 656,000 | 663,000 | 670,000 | 689,000 | 708,000 | 639,000 | 570,000 | 567,000 | 564,000 | 589,000 | 614,000 | 587,000 |
| Interest coverage | 6.68 | 8.87 | 7.76 | 7.69 | 7.81 | 7.63 | 8.46 | 8.75 | 8.82 | 9.03 | 9.29 | 9.21 | 9.24 | 9.71 | 10.49 | 9.89 | 9.36 | 9.71 | 9.69 | 10.94 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,871,000K ÷ $729,000K
= 6.68
Medtronic PLC's interest coverage ratio has exhibited fluctuation over the periods provided in the data. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
The interest coverage ratio ranged from a high of 10.94 in July 2022 to a low of 6.68 in April 2025. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income.
In the recent periods, the interest coverage ratio has shown a decreasing trend, potentially signaling some challenges in generating enough operating income to cover interest expenses. It is essential for the management of Medtronic PLC to closely monitor this ratio and take necessary actions to improve it if it continues to decline.
Peer comparison
Apr 30, 2025