Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Medtronic PLC, liquidity ratios
Based on: 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Medtronic PLC current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Medtronic PLC quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Medtronic PLC cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Current Ratio
Medtronic PLC, current ratio calculation, comparison to benchmarks
| Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 22,548 | 22,031 | 21,967 | 22,980 | 24,873 | 23,600 | |
| Current liabilities | 8,509 | 10,366 | 8,472 | 10,084 | 14,220 | 7,165 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.65 | 2.13 | 2.59 | 2.28 | 1.75 | 3.29 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Abbott Laboratories | 1.85 | 1.72 | 1.44 | 1.62 | 2.26 | — | |
| Anthem Inc. | 1.47 | 1.55 | 1.65 | 1.56 | 1.55 | — | |
| Bristol-Myers Squibb Co. | 1.52 | 1.58 | 1.60 | 1.61 | 1.55 | — | |
| CVS Health Corp. | 0.88 | 0.91 | 0.94 | 1.03 | 1.02 | — | |
| Danaher Corp. | 1.43 | 1.86 | 5.19 | 1.47 | 1.43 | — | |
| HCA Healthcare Inc. | 1.41 | 1.42 | 1.44 | 1.35 | 1.62 | — | |
| Intuitive Surgical Inc. | 5.08 | 6.86 | 4.53 | 5.28 | 3.99 | — | |
| Stryker Corp. | 2.20 | 1.93 | 2.58 | 2.02 | 2.29 | — | |
| UnitedHealth Group Inc. | 0.79 | 0.74 | 0.69 | 0.73 | 0.73 | — | |
| Current Ratio, Sector | |||||||
| Health Care Equipment & Services | 1.19 | 1.19 | 1.29 | 1.22 | 1.26 | — | |
| Current Ratio, Industry | |||||||
| Health Care | 1.26 | 1.25 | 1.41 | 1.46 | 1.50 | — | |
Based on: 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,548 ÷ 8,509 = 2.65
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Medtronic PLC current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Quick Ratio
Medtronic PLC, quick ratio calculation, comparison to benchmarks
| Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,593 | 4,140 | 4,393 | 3,669 | 4,967 | 2,876 | |
| Investments | 7,224 | 6,808 | 5,455 | 7,558 | 8,741 | 9,758 | |
| Accounts receivable, less allowances and credit losses | 5,462 | 4,645 | 6,222 | 5,987 | 5,591 | 5,562 | |
| Total quick assets | 16,279 | 15,593 | 16,070 | 17,214 | 19,299 | 18,196 | |
| Current liabilities | 8,509 | 10,366 | 8,472 | 10,084 | 14,220 | 7,165 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.91 | 1.50 | 1.90 | 1.71 | 1.36 | 2.54 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Abbott Laboratories | 1.28 | 1.14 | 0.88 | 1.03 | 1.67 | — | |
| Anthem Inc. | 1.33 | 1.42 | 1.52 | 1.44 | 1.42 | — | |
| Bristol-Myers Squibb Co. | 1.20 | 1.28 | 1.26 | 1.37 | 1.30 | — | |
| CVS Health Corp. | 0.55 | 0.53 | 0.52 | 0.55 | 0.49 | — | |
| Danaher Corp. | 0.89 | 1.36 | 4.68 | 0.88 | 0.87 | — | |
| HCA Healthcare Inc. | 1.00 | 1.02 | 1.03 | 0.96 | 1.17 | — | |
| Intuitive Surgical Inc. | 4.34 | 5.96 | 3.75 | 4.56 | 3.51 | — | |
| Stryker Corp. | 1.33 | 1.14 | 1.66 | 1.25 | 1.43 | — | |
| UnitedHealth Group Inc. | 0.72 | 0.68 | 0.63 | 0.67 | 0.68 | — | |
| Quick Ratio, Sector | |||||||
| Health Care Equipment & Services | 0.92 | 0.91 | 0.99 | 0.92 | 0.97 | — | |
| Quick Ratio, Industry | |||||||
| Health Care | 0.94 | 0.92 | 1.07 | 1.08 | 1.15 | — | |
Based on: 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,279 ÷ 8,509 = 1.91
2 Click competitor name to see calculations.
| Liquidity 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 quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Cash Ratio
Medtronic PLC, cash ratio calculation, comparison to benchmarks
| Apr 30, 2021 | Apr 24, 2020 | Apr 26, 2019 | Apr 27, 2018 | Apr 28, 2017 | Apr 29, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,593 | 4,140 | 4,393 | 3,669 | 4,967 | 2,876 | |
| Investments | 7,224 | 6,808 | 5,455 | 7,558 | 8,741 | 9,758 | |
| Total cash assets | 10,817 | 10,948 | 9,848 | 11,227 | 13,708 | 12,634 | |
| Current liabilities | 8,509 | 10,366 | 8,472 | 10,084 | 14,220 | 7,165 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.27 | 1.06 | 1.16 | 1.11 | 0.96 | 1.76 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Abbott Laboratories | 0.78 | 0.60 | 0.38 | 0.45 | 1.08 | — | |
| Anthem Inc. | 0.95 | 1.04 | 1.08 | 1.01 | 1.05 | — | |
| Bristol-Myers Squibb Co. | 0.78 | 0.83 | 0.84 | 0.83 | 0.71 | — | |
| CVS Health Corp. | 0.18 | 0.18 | 0.15 | 0.15 | 0.06 | — | |
| Danaher Corp. | 0.32 | 0.82 | 4.04 | 0.16 | 0.13 | — | |
| HCA Healthcare Inc. | 0.15 | 0.21 | 0.08 | 0.07 | 0.12 | — | |
| Intuitive Surgical Inc. | 3.66 | 5.30 | 3.13 | 3.73 | 2.78 | — | |
| Stryker Corp. | 0.66 | 0.60 | 1.01 | 0.77 | 0.80 | — | |
| UnitedHealth Group Inc. | 0.36 | 0.33 | 0.28 | 0.33 | 0.37 | — | |
| Cash Ratio, Sector | |||||||
| Health Care Equipment & Services | 0.50 | 0.51 | 0.56 | 0.47 | 0.53 | — | |
| Cash Ratio, Industry | |||||||
| Health Care | 0.53 | 0.52 | 0.66 | 0.67 | 0.74 | — | |
Based on: 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,817 ÷ 8,509 = 1.27
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Medtronic PLC cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |