Medtronic PLC (MDT)
Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Ratios (Summary)
Medtronic PLC, liquidity ratios
Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Medtronic PLC’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Medtronic PLC’s quick ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Medtronic PLC’s cash ratio improved from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Medtronic PLC, current ratio calculation, comparison to benchmarks
| Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | Apr 24, 2015 | Apr 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 21,967 | 22,980 | 24,873 | 23,600 | 30,844 | 21,210 | |
| Current liabilities | 8,472 | 10,084 | 14,220 | 7,165 | 9,173 | 5,559 | |
| Ratio | |||||||
| Current ratio1 | 2.59 | 2.28 | 1.75 | 3.29 | 3.36 | 3.82 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Becton, Dickinson & Co. | — | 1.03 | 5.58 | 1.45 | 1.38 | 2.74 | |
| Intuitive Surgical Inc. | — | 5.28 | 3.99 | 5.45 | 4.46 | 3.69 | |
| Stryker Corp. | — | 2.02 | 2.29 | 2.50 | 2.27 | 2.17 | |
| Thermo Fisher Scientific Inc. | — | 1.73 | 1.34 | 1.44 | 1.38 | 1.22 | |
| UnitedHealth Group Inc. | — | 0.73 | 0.73 | 0.69 | 0.74 | 0.77 | |
| Current Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 1.14 | 1.27 | 1.18 | 1.31 | 1.42 | |
| Current Ratio, Industry | |||||||
| Health Care | — | 1.52 | 1.64 | 1.83 | 1.73 | 1.98 | |
Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,967 ÷ 8,472 = 2.59
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Medtronic PLC’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Medtronic PLC, quick ratio calculation, comparison to benchmarks
| Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | Apr 24, 2015 | Apr 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,393 | 3,669 | 4,967 | 2,876 | 4,843 | 1,403 | |
| Investments | 5,455 | 7,558 | 8,741 | 9,758 | 14,637 | 12,838 | |
| Accounts receivable, less allowances | 6,222 | 5,987 | 5,591 | 5,562 | 5,112 | 3,811 | |
| Total quick assets | 16,070 | 17,214 | 19,299 | 18,196 | 24,592 | 18,052 | |
| Current liabilities | 8,472 | 10,084 | 14,220 | 7,165 | 9,173 | 5,559 | |
| Ratio | |||||||
| Quick ratio1 | 1.90 | 1.71 | 1.36 | 2.54 | 2.68 | 3.25 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Becton, Dickinson & Co. | — | 0.50 | 4.77 | 0.72 | 0.70 | 1.76 | |
| Intuitive Surgical Inc. | — | 4.56 | 3.51 | 5.00 | 3.97 | 3.09 | |
| Stryker Corp. | — | 1.25 | 1.43 | 1.70 | 1.64 | 1.47 | |
| Thermo Fisher Scientific Inc. | — | 1.01 | 0.74 | 0.79 | 0.72 | 0.71 | |
| UnitedHealth Group Inc. | — | 0.61 | 0.62 | 0.59 | 0.61 | 0.62 | |
| Quick Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 0.84 | 1.00 | 0.90 | 1.00 | 1.09 | |
| Quick Ratio, Industry | |||||||
| Health Care | — | 1.13 | 1.29 | 1.44 | 1.33 | 1.48 | |
Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,070 ÷ 8,472 = 1.90
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Medtronic PLC’s quick ratio improved from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Medtronic PLC, cash ratio calculation, comparison to benchmarks
| Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | Apr 24, 2015 | Apr 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,393 | 3,669 | 4,967 | 2,876 | 4,843 | 1,403 | |
| Investments | 5,455 | 7,558 | 8,741 | 9,758 | 14,637 | 12,838 | |
| Total cash assets | 9,848 | 11,227 | 13,708 | 12,634 | 19,480 | 14,241 | |
| Current liabilities | 8,472 | 10,084 | 14,220 | 7,165 | 9,173 | 5,559 | |
| Ratio | |||||||
| Cash ratio1 | 1.16 | 1.11 | 0.96 | 1.76 | 2.12 | 2.56 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Becton, Dickinson & Co. | — | 0.17 | 4.25 | 0.36 | 0.33 | 1.23 | |
| Intuitive Surgical Inc. | — | 3.73 | 2.78 | 4.28 | 3.17 | 2.46 | |
| Stryker Corp. | — | 0.77 | 0.80 | 1.07 | 1.16 | 1.12 | |
| Thermo Fisher Scientific Inc. | — | 0.34 | 0.19 | 0.16 | 0.11 | 0.25 | |
| UnitedHealth Group Inc. | — | 0.27 | 0.31 | 0.27 | 0.30 | 0.30 | |
| Cash Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 0.43 | 0.62 | 0.49 | 0.62 | 0.69 | |
| Cash Ratio, Industry | |||||||
| Health Care | — | 0.73 | 0.90 | 1.03 | 0.94 | 1.07 | |
Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,848 ÷ 8,472 = 1.16
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Medtronic PLC’s cash ratio improved from 2017 to 2018 and from 2018 to 2019. |