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Medtronic Inc. (MDT) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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Medtronic Inc., debt and solvency ratios

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    Apr 29, 2011 Apr 30, 2010 Apr 24, 2009 Apr 25, 2008 Apr 27, 2007 Apr 28, 2006
Debt to equity
Debt to capital
Interest coverage

Source: Based on data from Medtronic Inc. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Medtronic Inc.'s debt-to-equity ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Medtronic Inc.'s debt-to-capital ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Medtronic Inc.'s interest coverage ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

Debt to Equity

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    Apr 29, 2011 Apr 30, 2010 Apr 24, 2009 Apr 25, 2008 Apr 27, 2007 Apr 28, 2006
  Selected Financial Data (USD $ in millions)
Short-term borrowings
Long-term debt
Total debt
Shareholders’ equity
  Debt to Equity, Comparison to Industry
Medtronic Inc.1
  Industry, Health Care

Source: Based on data from Medtronic Inc. Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Medtronic Inc.'s debt-to-equity ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.

Debt to Capital

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    Apr 29, 2011 Apr 30, 2010 Apr 24, 2009 Apr 25, 2008 Apr 27, 2007 Apr 28, 2006
  Selected Financial Data (USD $ in millions)
Short-term borrowings
Long-term debt
Total debt
Shareholders’ equity
Total capital
  Debt to Capital, Comparison to Industry
Medtronic Inc.1
  Industry, Health Care

Source: Based on data from Medtronic Inc. Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Medtronic Inc.'s debt-to-capital ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.

Interest Coverage

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    Apr 29, 2011 Apr 30, 2010 Apr 24, 2009 Apr 25, 2008 Apr 27, 2007 Apr 28, 2006
  Selected Financial Data (USD $ in millions)
Net earnings
Add: Interest expense
Add: Income tax expense (benefit)
Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
Medtronic Inc.1
  Industry, Health Care

Source: Based on data from Medtronic Inc. Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Medtronic Inc.'s interest coverage ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

February 8, 2012

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