Microsoft Excel LibreOffice Calc

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

Microsoft Excel LibreOffice Calc
Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015 Apr 25, 2014
Current ratio 2.59 2.28 1.75 3.29 3.36 3.82
Quick ratio 1.90 1.71 1.36 2.54 2.68 3.25
Cash ratio 1.16 1.11 0.96 1.76 2.12 2.56

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

Microsoft Excel LibreOffice Calc
Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015 Apr 25, 2014
Selected Financial Data (USD $ 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, Competitors
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).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 21,967 ÷ 8,472 = 2.59

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

Microsoft Excel LibreOffice Calc
Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015 Apr 25, 2014
Selected Financial Data (USD $ 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, Competitors
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).

2019 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 16,070 ÷ 8,472 = 1.90

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

Microsoft Excel LibreOffice Calc
Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016 Apr 24, 2015 Apr 25, 2014
Selected Financial Data (USD $ 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, Competitors
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).

2019 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 9,848 ÷ 8,472 = 1.16

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.