Medtronic PLC (MDT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 | 0.00 | 0.23 | 0.00 | 0.22 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.30 | 0.00 | 0.00 | 0.00 | 0.29 | 0.00 | 0.28 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.42 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.38 | 0.00 |
| Financial leverage ratio | 1.82 | 1.86 | 1.87 | 1.79 | 1.79 | 1.75 | 1.75 | 1.75 | 1.75 | 1.77 | 1.77 | 1.77 | 1.77 | 1.83 | 1.83 | 1.80 | 1.80 | 1.71 | 1.71 | 1.73 |
The solvency ratios of Medtronic PLC provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-Assets Ratio: This ratio indicates the proportion of the company's assets financed by debt. Medtronic PLC has maintained a relatively low debt-to-assets ratio, with the latest figure being 0.00 as of January 31, 2025. This suggests a conservative approach to leverage, where the company relies more on equity to finance its operations.
2. Debt-to-Capital Ratio: The debt-to-capital ratio measures the proportion of a company's capital that is financed through debt. Medtronic PLC's debt-to-capital ratio has also been consistently low, with the most recent reading at 0.00 as of January 31, 2025. This indicates that the company relies more on equity than debt to fund its operations and investments.
3. Debt-to-Equity Ratio: The debt-to-equity ratio compares a company's debt to its equity, reflecting the extent to which shareholders' equity can cover company debt. Medtronic PLC's debt-to-equity ratio has been minimal at 0.00 as of January 31, 2025. This indicates a strong financial position with a low level of debt relative to equity.
4. Financial Leverage Ratio: The financial leverage ratio compares a company's total assets to its equity, measuring the degree to which a company uses debt to finance its assets. Medtronic PLC's financial leverage ratio has been relatively stable, with the latest figure at 1.82 as of January 31, 2025. This suggests a moderate level of financial leverage, indicating a balanced mix of debt and equity in the company's capital structure.
Overall, based on the solvency ratios, Medtronic PLC appears to have a strong financial position with conservative levels of debt and a solid ability to meet its long-term financial obligations. The company's financial leverage remains moderate, reflecting a balanced approach to capital structure management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, the interest coverage ratio for Medtronic PLC has shown a fluctuating trend over the period from April 30, 2022, to January 31, 2025. The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio is generally viewed positively as it suggests that the company is more capable of servicing its debt.
In April 2022, the interest coverage ratio stood at 12.39, indicating a strong ability to cover interest payments. However, the ratio slightly decreased to 10.94 in July 2022 and further declined to 9.69 in July 31, 2022. The trend continued with fluctuations, showing values of 9.11 in October 27, 2023, and 7.63 in April 26, 2024, before slightly recovering to 8.87 in January 31, 2025.
The decline in the interest coverage ratio suggests that Medtronic PLC may have faced challenges in generating sufficient earnings to cover its interest expense during certain periods. This could be due to various factors such as changes in operating income, increasing debt levels, or higher interest expenses.
It is important for investors and stakeholders to closely monitor the interest coverage ratio to assess the company's financial health and its ability to meet its debt obligations. A consistent and healthy interest coverage ratio is crucial for maintaining the company's financial stability and sustainability in the long run.