Medtronic PLC (MDT)
Interest coverage
| 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 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,717,000 | 6,051,000 | 5,834,000 | 6,093,000 | 5,787,000 | 6,225,000 | 6,093,000 | 5,787,000 | 6,041,000 | 6,278,000 | 6,401,000 | 6,597,000 | 6,202,000 | 5,978,000 | 5,607,000 | 5,277,000 | 5,717,000 | 5,951,000 | 6,421,000 | 6,939,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 560,000 |
| Interest coverage | 8.87 | 7.76 | 7.69 | 7.81 | 7.63 | 8.46 | 8.75 | 8.82 | 9.11 | 9.37 | 9.29 | 9.32 | 9.71 | 10.49 | 9.89 | 9.36 | 9.71 | 9.69 | 10.94 | 12.39 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,717,000K ÷ $757,000K
= 8.87
The interest coverage ratio for Medtronic PLC indicates the company's ability to meet its interest obligations from its operating income. Looking at the data provided, we observe fluctuations in the interest coverage ratio over the specified periods. The interest coverage ratio ranged from a high of 12.39 in April 30, 2022, indicating a strong ability to cover interest payments, to a low of 7.63 in April 26, 2024, showing a decrease in the company's ability to cover its interest expenses.
Overall, the trend in the interest coverage ratio appears to have experienced some fluctuations but generally stayed above the threshold of 1, which is considered a minimum acceptable level. However, a declining trend in the ratio towards the later periods may raise concerns about the company's ability to comfortably meet its interest obligations in the future. Further analysis and monitoring of the interest coverage ratio will be necessary to assess Medtronic PLC's financial health and ability to service its debt obligations effectively.
Peer comparison
Jan 31, 2025