Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Medtronic PLC, common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
The financial data reveals various trends regarding the composition of liabilities and equity over the analyzed periods. The following observations summarize the key patterns and changes:
- Current Debt Obligations
- Fluctuations are evident in the share of current debt obligations within total liabilities and equity, with values oscillating between very low percentages (near 0.01% in 2021 and 0.02% in 2023) and moderate rises in other years, reaching 4.11% in 2022 and 3.13% in 2025. This indicates variability in short-term borrowing or similar commitments.
- Accounts Payable
- A steady increase was observed from 2.2% in 2020, slowly rising to a peak of 2.93% in 2023, before settling slightly lower around 2.67% in 2024 and 2025. This suggests incremental growth in trade-related obligations.
- Accrued Compensation
- This category generally rose over the periods, starting at 2.31% in 2020, peaking at 2.74% in 2025, with minor declines in intervening years. The rise reflects an increasing proportion of liabilities allocated to employee-related obligations.
- Accrued Income Taxes (current liabilities)
- Values increased steadily from 0.55% in 2020 to 1.48% in both 2024 and 2025, indicating growing short-term tax accruals relative to total financing.
- Other Accrued Expenses
- There was a gradual increase from 3.3% in 2020 to 4.02% in 2025, implying a steady expansion in other accrued liabilities not otherwise specified.
- Current Liabilities
- The current liabilities figure showed volatility, starting at 11.43% in 2020, declining to a low of 9.14% in 2021, rising sharply to 13.62% in 2022, then fluctuating between 9.95% and 14.05% through to 2025. This indicates varying short-term obligations over time.
- Long-Term Debt
- Long-term debt composition showed a decrease from 24.28% in 2020 to 22.39% in 2022, then an increase back to approximately 27% by 2025, reflecting adjustments in long-term borrowing or refinancing activities.
- Accrued Compensation and Retirement Benefits
- A decreasing trend is noticeable from 2.11% in 2020 to approximately 1.2%-1.26% from 2022 through 2025, which may suggest improvements in managing retirement-related liabilities or changes in benefit structures.
- Accrued Income Taxes (noncurrent liabilities)
- A declining trend is evident, dropping from 2.96% in 2020 to 1.72% in 2025, indicating a reduction in long-term tax-related liabilities.
- Deferred Tax Liabilities
- There is a consistent decrease from 1.29% in 2020 to 0.44% in 2025, which may reflect changes in tax timing differences or tax planning strategies impacting deferred taxes.
- Other Liabilities
- Values remained relatively steady with slight fluctuations around 1.5%-1.9%, showing stability in miscellaneous long-term obligations.
- Noncurrent Liabilities
- After peaking at 35.42% in 2021, the share of noncurrent liabilities decreased to 28.43% in 2022 before recovering somewhat and stabilizing near 33% through 2025, suggesting changes in long-term obligations composition and balance.
- Total Liabilities
- The total liabilities percentage of the overall financing mix hovered within the low-to-mid 40% range, showing a slight increase over the later years and reaching 47.36% by 2025, implying a somewhat heavier reliance on debt and other liabilities at the end of the period.
- Additional Paid-in Capital
- A downtrend is apparent, with the share decreasing consistently from 28.85% in 2020 to 22.72% in 2025, indicating either a reduction in capital injections or changes in equity capital structure.
- Retained Earnings
- Retained earnings as a proportion of total financing exhibited growth, rising from 31.02% in 2020 to 34.33% in 2025, highlighting accumulated profits increasing relative to total liabilities and equity.
- Accumulated Other Comprehensive Loss
- This negative component fluctuated moderately, generally between -2.49% and -4.67%, with no clear directional trend, reflecting volatility in unrealized losses or gains recognized in equity.
- Shareholders’ Equity
- Shareholders’ equity showed a gradual decline from 55.95% in 2020 to 52.38% in 2025, aligning with the observed increase in total liabilities toward the end of the period, thereby indicating a slight shift toward greater leverage.
- Noncontrolling Interests
- There was a modest increase from 0.15% to 0.25%, which suggests a slight growth in the portion of equity attributable to minority shareholders.
- Total Equity
- The total equity component followed a descending trend from 56.1% in 2020 to 52.64% in 2025, underscoring a gradual reduction in equity proportion of total financing in favor of liabilities.
In summary, the data highlights a trend of relatively stable but fluctuating total liabilities and equity composition, with a noticeable gradual shift towards higher liabilities, particularly driven by rises in total liabilities and decreases in paid-in capital and overall equity share. Retained earnings have grown consistently, serving as a stabilizing factor within equity. The balance between current and noncurrent liabilities has been variable, indicating dynamic financial management with respect to obligations over short and long terms.
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