Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Medtronic PLC, solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
The solvency profile exhibits a period of relative stability followed by a gradual increase in leverage from mid-2022 through 2025, although the company maintains a robust capacity to service its obligations.
- Debt-to-Equity and Capital Structure
- The debt-to-equity ratio followed a fluctuating trajectory, reaching a low of 0.44 in July 2022 before trending upward to a peak of 0.60 between July and October 2025. This upward trend is mirrored in the debt-to-capital ratio, which rose from a minimum of 0.31 in early 2022 to a peak of 0.37 in late 2024 and 2025. These patterns indicate a strategic shift toward a higher proportion of debt financing relative to equity and total capital over the analyzed period.
- Asset Leverage and Financial Leverage
- Debt-to-assets remained relatively stable, oscillating between 0.26 and 0.32, suggesting that the growth in debt was largely commensurate with the growth in the total asset base. Financial leverage showed a corresponding increase, moving from a period low of 1.71 in July 2022 to a high of 1.91 in January 2025. This increase reflects a higher multiplier effect on equity, although the values remained within a consistent range throughout the duration.
- Interest Coverage and Debt Servicing
- Interest coverage demonstrated significant volatility but remained strong. After an initial surge from 5.65 in July 2021 to a peak of 11.02 in October 2022, the ratio experienced a gradual decline, hitting a low of 7.65 in October 2023. A recovery phase followed, with the ratio climbing back to 9.58 by April 2026. Despite the decline from the 2022 peak, the consistent maintenance of the ratio well above 7.0x indicates a substantial margin of safety for meeting interest obligations.
Overall, while solvency ratios indicate an increase in the company's leverage levels starting in 2023, the strong interest coverage ratios suggest that this increased debt load is sustainable and well-supported by operating earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
Medtronic PLC, debt to equity calculation (quarterly data)
| Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current debt obligations | 1,788) | 191) | 1,420) | 2,430) | 2,874) | 2,622) | 3,719) | 1,553) | 1,092) | 1,029) | 1,339) | 519) | 20) | 5,918) | 5,864) | 5,729) | 3,742) | 865) | 16) | 6) | ||||||
| Long-term debt | 26,173) | 27,880) | 27,680) | 26,179) | 25,642) | 23,985) | 24,607) | 26,312) | 23,932) | 24,153) | 23,741) | 24,463) | 24,344) | 22,210) | 20,753) | 17,481) | 20,372) | 24,290) | 25,607) | 25,958) | ||||||
| Total debt | 27,961) | 28,071) | 29,100) | 28,609) | 28,516) | 26,607) | 28,326) | 27,865) | 25,024) | 25,182) | 25,080) | 24,982) | 24,364) | 28,128) | 26,617) | 23,210) | 24,114) | 25,155) | 25,623) | 25,964) | ||||||
| Shareholders’ equity | 49,463) | 48,985) | 48,652) | 47,893) | 48,024) | 49,387) | 48,494) | 47,947) | 50,214) | 51,792) | 51,460) | 51,178) | 51,483) | 51,441) | 51,880) | 52,672) | 52,551) | 52,542) | 51,991) | 51,486) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | 0.57 | 0.57 | 0.60 | 0.60 | 0.59 | 0.54 | 0.58 | 0.58 | 0.50 | 0.49 | 0.49 | 0.49 | 0.47 | 0.55 | 0.51 | 0.44 | 0.46 | 0.48 | 0.49 | 0.50 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | 0.65 | 0.25 | 0.25 | 0.27 | 0.27 | 0.30 | 0.38 | 0.38 | 0.38 | 0.38 | 0.41 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.48 | ||||||
| Elevance Health Inc. | — | — | — | 0.73 | 0.73 | 0.73 | 0.69 | 0.71 | 0.76 | 0.62 | 0.66 | 0.65 | 0.64 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.66 | 0.65 | ||||||
| Intuitive Surgical Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| UnitedHealth Group Inc. | — | — | — | 0.80 | 0.83 | 0.84 | 0.84 | 0.86 | 0.83 | 0.83 | 0.84 | 0.85 | 0.70 | 0.75 | 0.80 | 0.87 | 0.74 | 0.65 | 0.71 | 0.65 | ||||||
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
1 Q4 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 27,961 ÷ 49,463 = 0.57
2 Click competitor name to see calculations.
The solvency profile exhibits a gradual increase in financial leverage over the period from July 2021 through April 2026. An initial period of deleveraging is followed by a sustained increase in the total debt load and a simultaneous contraction in shareholders' equity, resulting in a higher debt-to-equity ratio.
- Total Debt Trajectory
- Total debt displayed notable volatility with a general upward trajectory. An initial decline from 25,964 million USD in July 2021 to a low of 23,210 million USD in July 2022 was followed by a period of fluctuation. A significant upward trend commenced after April 2023, with total debt escalating to a peak of 29,100 million USD in October 2025, before moderating to 27,961 million USD by April 2026.
- Shareholders' Equity Dynamics
- Equity remained relatively stable during the first year of the analyzed period, reaching a peak of 52,672 million USD in July 2022. Subsequently, a gradual downward trend emerged. Equity levels contracted more noticeably starting in July 2024, hitting a low of 47,893 million USD in July 2025, before showing a slight recovery to 49,463 million USD by April 2026.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio reflects the combined impact of rising liabilities and declining equity. The ratio improved from 0.50 to a period low of 0.44 in July 2022. Following this trough, the ratio entered a steady ascent, peaking at 0.60 between July and October 2025. This indicates a shift in the capital structure toward a higher reliance on debt financing. The analysis period concludes with the ratio stabilizing at 0.57.
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Debt to Capital
Medtronic PLC, debt to capital calculation (quarterly data)
| Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current debt obligations | 1,788) | 191) | 1,420) | 2,430) | 2,874) | 2,622) | 3,719) | 1,553) | 1,092) | 1,029) | 1,339) | 519) | 20) | 5,918) | 5,864) | 5,729) | 3,742) | 865) | 16) | 6) | ||||||
| Long-term debt | 26,173) | 27,880) | 27,680) | 26,179) | 25,642) | 23,985) | 24,607) | 26,312) | 23,932) | 24,153) | 23,741) | 24,463) | 24,344) | 22,210) | 20,753) | 17,481) | 20,372) | 24,290) | 25,607) | 25,958) | ||||||
| Total debt | 27,961) | 28,071) | 29,100) | 28,609) | 28,516) | 26,607) | 28,326) | 27,865) | 25,024) | 25,182) | 25,080) | 24,982) | 24,364) | 28,128) | 26,617) | 23,210) | 24,114) | 25,155) | 25,623) | 25,964) | ||||||
| Shareholders’ equity | 49,463) | 48,985) | 48,652) | 47,893) | 48,024) | 49,387) | 48,494) | 47,947) | 50,214) | 51,792) | 51,460) | 51,178) | 51,483) | 51,441) | 51,880) | 52,672) | 52,551) | 52,542) | 51,991) | 51,486) | ||||||
| Total capital | 77,424) | 77,056) | 77,752) | 76,502) | 76,540) | 75,994) | 76,820) | 75,812) | 75,238) | 76,974) | 76,540) | 76,160) | 75,847) | 79,569) | 78,497) | 75,882) | 76,665) | 77,697) | 77,614) | 77,450) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.35 | 0.37 | 0.37 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | 0.40 | 0.20 | 0.20 | 0.21 | 0.21 | 0.23 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.31 | 0.31 | 0.32 | 0.31 | 0.33 | ||||||
| Elevance Health Inc. | — | — | — | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.43 | 0.38 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.40 | 0.40 | 0.39 | ||||||
| Intuitive Surgical Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| UnitedHealth Group Inc. | — | — | — | 0.44 | 0.45 | 0.46 | 0.46 | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.41 | 0.43 | 0.44 | 0.46 | 0.43 | 0.39 | 0.41 | 0.39 | ||||||
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
1 Q4 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 27,961 ÷ 77,424 = 0.36
2 Click competitor name to see calculations.
The solvency profile exhibits a cyclical pattern characterized by an initial period of deleveraging, followed by a phase of stability and a subsequent strategic increase in leverage. While total capital remained relatively consistent throughout the analyzed period, the debt-to-capital ratio was primarily driven by fluctuations in total debt levels.
- Debt to Capital Ratio Trajectory
- The ratio began at 0.34 in July 2021 and experienced a gradual decline to a minimum of 0.31 by July 2022. After a period of volatility and subsequent stabilization at 0.33 between July 2023 and April 2024, the ratio trended upward, reaching a peak of 0.37 from July 2024 through October 2025. The period closed with a marginal decrease to 0.36 by April 2026.
- Total Debt Analysis
- Total debt levels showed significant variance, decreasing from $25,964 million in July 2021 to a low of $23,210 million in July 2022. A sharp increase occurred in early 2023, followed by a period of consolidation around the $25,000 million mark. A second, more sustained increase in borrowing is observed from July 2024 onward, with total debt peaking at $29,100 million in October 2025 before slightly receding to $27,961 million by April 2026.
- Total Capital Consistency
- Total capital exhibited minimal volatility, maintaining a narrow range between a low of $75,238 million in April 2024 and a high of $79,569 million in January 2023. This relative stability suggests that the shifts in the debt-to-capital ratio were not the result of significant changes in the total capital base, but were instead a direct consequence of changes in total debt obligations.
- Solvency Pattern Insight
- The transition from a 0.31 ratio in mid-2022 to a 0.36 ratio by early 2026 indicates a shift toward a more leveraged capital structure. The data suggests a period of aggressive debt reduction in 2021-2022, followed by an expansion of debt in 2024-2025, signaling a change in financing strategy or capital requirements during the latter half of the timeline.
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Debt to Assets
Medtronic PLC, debt to assets calculation (quarterly data)
| Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current debt obligations | 1,788) | 191) | 1,420) | 2,430) | 2,874) | 2,622) | 3,719) | 1,553) | 1,092) | 1,029) | 1,339) | 519) | 20) | 5,918) | 5,864) | 5,729) | 3,742) | 865) | 16) | 6) | ||||||
| Long-term debt | 26,173) | 27,880) | 27,680) | 26,179) | 25,642) | 23,985) | 24,607) | 26,312) | 23,932) | 24,153) | 23,741) | 24,463) | 24,344) | 22,210) | 20,753) | 17,481) | 20,372) | 24,290) | 25,607) | 25,958) | ||||||
| Total debt | 27,961) | 28,071) | 29,100) | 28,609) | 28,516) | 26,607) | 28,326) | 27,865) | 25,024) | 25,182) | 25,080) | 24,982) | 24,364) | 28,128) | 26,617) | 23,210) | 24,114) | 25,155) | 25,623) | 25,964) | ||||||
| Total assets | 93,028) | 91,485) | 91,346) | 90,972) | 91,680) | 89,973) | 90,042) | 89,749) | 89,981) | 90,836) | 90,087) | 90,776) | 90,948) | 94,134) | 93,241) | 89,914) | 90,981) | 91,804) | 91,756) | 91,802) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | 0.30 | 0.31 | 0.32 | 0.31 | 0.31 | 0.30 | 0.31 | 0.31 | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | 0.30 | 0.29 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | 0.31 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.20 | 0.20 | 0.20 | 0.20 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | ||||||
| Elevance Health Inc. | — | — | — | 0.25 | 0.26 | 0.26 | 0.25 | 0.25 | 0.27 | 0.23 | 0.25 | 0.24 | 0.23 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | ||||||
| Intuitive Surgical Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| UnitedHealth Group Inc. | — | — | — | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.23 | 0.22 | 0.23 | 0.25 | 0.23 | 0.20 | 0.22 | 0.21 | ||||||
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
1 Q4 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 27,961 ÷ 93,028 = 0.30
2 Click competitor name to see calculations.
The solvency profile exhibits a pattern of moderate and relatively stable leverage, with the Debt to Assets ratio consistently fluctuating within a narrow range between 0.26 and 0.32 over the analyzed period. While total assets remained largely stagnant, the movements in the solvency ratio were primarily driven by variations in total debt levels.
- Debt to Assets Ratio Trends
- A gradual decline in leverage is observed from July 2021 to July 2022, with the ratio moving from 0.28 to a period low of 0.26. This was followed by a sharp increase to 0.30 by January 2023. Following this peak, the ratio stabilized at 0.28 for several quarters between April 2023 and January 2024.
- Recent Leverage Escalation
- A secondary upward trend emerged starting in July 2024, where the ratio climbed to 0.31 and reached its maximum value of 0.32 in October 2025. This indicates a period of increased reliance on debt relative to the asset base, although a slight correction to 0.30 is noted by April 2026.
- Asset and Debt Correlation
- Total assets demonstrated high stability, remaining within a tight corridor between approximately $89.7 billion and $94.1 billion. Because the asset base remained nearly constant, the solvency ratio mirrored the volatility of total debt, which fluctuated from a minimum of $23.2 billion in July 2022 to a peak of $29.1 billion in October 2025.
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Financial Leverage
Medtronic PLC, financial leverage calculation (quarterly data)
| Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Total assets | 93,028) | 91,485) | 91,346) | 90,972) | 91,680) | 89,973) | 90,042) | 89,749) | 89,981) | 90,836) | 90,087) | 90,776) | 90,948) | 94,134) | 93,241) | 89,914) | 90,981) | 91,804) | 91,756) | 91,802) | ||||||
| Shareholders’ equity | 49,463) | 48,985) | 48,652) | 47,893) | 48,024) | 49,387) | 48,494) | 47,947) | 50,214) | 51,792) | 51,460) | 51,178) | 51,483) | 51,441) | 51,880) | 52,672) | 52,551) | 52,542) | 51,991) | 51,486) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | 1.88 | 1.87 | 1.88 | 1.90 | 1.91 | 1.82 | 1.86 | 1.87 | 1.79 | 1.75 | 1.75 | 1.77 | 1.77 | 1.83 | 1.80 | 1.71 | 1.73 | 1.75 | 1.76 | 1.78 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | 2.12 | 1.66 | 1.65 | 1.66 | 1.67 | 1.71 | 1.87 | 1.86 | 1.87 | 1.90 | 1.92 | 1.97 | 1.99 | 2.03 | 2.04 | 2.03 | 2.09 | ||||||
| Elevance Health Inc. | — | — | — | 2.87 | 2.77 | 2.79 | 2.79 | 2.82 | 2.83 | 2.66 | 2.68 | 2.76 | 2.77 | 2.88 | 2.86 | 2.92 | 2.83 | 2.86 | 2.82 | 2.79 | ||||||
| Intuitive Surgical Inc. | — | — | — | 1.15 | 1.15 | 1.14 | 1.13 | 1.12 | 1.14 | 1.14 | 1.13 | 1.13 | 1.16 | 1.17 | 1.17 | 1.16 | 1.17 | 1.15 | 1.14 | 1.13 | ||||||
| UnitedHealth Group Inc. | — | — | — | 3.19 | 3.29 | 3.29 | 3.26 | 3.26 | 3.22 | 3.17 | 3.20 | 3.28 | 3.08 | 3.34 | 3.40 | 3.49 | 3.16 | 3.26 | 3.16 | 3.04 | ||||||
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
1 Q4 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 93,028 ÷ 49,463 = 1.88
2 Click competitor name to see calculations.
An examination of the solvency metrics reveals a period of relative stability in total assets contrasted with a gradual decline in shareholders' equity, resulting in an overall increase in financial leverage over the analyzed period.
- Total Assets Trend
- Total assets remained relatively range-bound, fluctuating between a minimum of 89,749 million USD in July 2024 and a maximum of 94,134 million USD in January 2023. While minor quarterly volatility is present, the asset base demonstrates a high degree of consistency, ending the period at 93,028 million USD in April 2026.
- Shareholders' Equity Dynamics
- Shareholders' equity exhibited stability between 51,000 million USD and 52,600 million USD from July 2021 through October 2023. However, a downward shift occurred starting in early 2024, with equity dropping to 47,947 million USD by July 2024. Despite a slight recovery toward 49,463 million USD by April 2026, the equity base remains lower than the levels observed in the 2021-2023 period.
- Financial Leverage Analysis
- The financial leverage ratio shows a distinct upward trajectory in the latter half of the period. After maintaining a range between 1.71 and 1.83 from July 2021 to October 2023, the ratio climbed to a peak of 1.91 in January 2025. This increase is primarily attributed to the contraction in shareholders' equity rather than significant asset expansion. The period concludes with a leverage ratio of 1.88, indicating a higher reliance on debt or other liabilities relative to equity compared to the baseline of 1.78 in July 2021.
The convergence of stable total assets and reduced equity suggests a strategic or operational shift in the capital structure, leading to a more leveraged financial position by April 2026.
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Interest Coverage
Medtronic PLC, interest coverage calculation (quarterly data)
| Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income attributable to Medtronic | 1,244) | 1,143) | 1,374) | 1,040) | 1,056) | 1,294) | 1,270) | 1,042) | 654) | 1,322) | 909) | 791) | 1,180) | 1,222) | 427) | 929) | 1,485) | 1,480) | 1,311) | 763) | ||||||
| Add: Net income attributable to noncontrolling interest | 15) | 7) | 7) | 7) | 5) | 9) | 8) | 7) | 6) | 15) | 2) | 6) | 9) | 7) | 8) | 2) | 8) | 3) | 6) | 6) | ||||||
| Add: Income tax expense | 574) | 254) | 216) | 255) | 200) | 237) | 281) | 219) | 196) | 135) | 402) | 399) | 361) | 146) | 960) | 113) | 109) | 106) | 176) | 64) | ||||||
| Add: Interest expense, net | 177) | 181) | 181) | 176) | 174) | 179) | 209) | 167) | 203) | 188) | 180) | 148) | 187) | 167) | 118) | 164) | 143) | 137) | 136) | 137) | ||||||
| Earnings before interest and tax (EBIT) | 2,010) | 1,585) | 1,778) | 1,478) | 1,435) | 1,719) | 1,768) | 1,435) | 1,059) | 1,660) | 1,493) | 1,344) | 1,737) | 1,542) | 1,513) | 1,208) | 1,745) | 1,726) | 1,629) | 970) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Interest coverage1 | 9.58 | 8.81 | 9.03 | 8.67 | 8.72 | 7.89 | 7.72 | 7.65 | 7.73 | 8.87 | 8.97 | 9.90 | 9.43 | 10.15 | 11.02 | 10.88 | 10.98 | 10.95 | 10.18 | 5.65 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | 16.18 | 18.17 | 16.99 | 15.90 | 14.40 | 13.55 | 12.65 | 11.74 | 11.46 | 11.46 | 10.79 | 11.34 | 13.06 | 15.89 | 18.41 | 20.07 | 18.10 | ||||||
| Elevance Health Inc. | — | — | — | 5.39 | 5.79 | 6.16 | 6.33 | 7.14 | 7.67 | 8.52 | 9.07 | 8.70 | 8.49 | 8.87 | 9.76 | 9.95 | 10.13 | 10.75 | 10.71 | 11.01 | ||||||
| UnitedHealth Group Inc. | — | — | — | 4.68 | 4.67 | 6.51 | 7.48 | 7.94 | 6.14 | 6.39 | 6.79 | 7.53 | 9.97 | 10.21 | 10.99 | 12.25 | 13.59 | 14.66 | 14.45 | 14.26 | ||||||
Based on: 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30).
1 Q4 2026 Calculation
Interest coverage
= (EBITQ4 2026
+ EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026)
÷ (Interest expenseQ4 2026
+ Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026)
= (2,010 + 1,585 + 1,778 + 1,478)
÷ (177 + 181 + 181 + 176)
= 9.58
2 Click competitor name to see calculations.
The interest coverage profile exhibits a period of significant expansion followed by a gradual correction and subsequent stabilization. While the ability to meet interest obligations remains robust, the coverage ratio transitioned from a peak of approximately 11.0x to a more stabilized range between 7.6x and 9.6x over the analyzed period.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT displays notable volatility with a general upward trajectory. Operating earnings increased from 970 million in July 2021 to a period high of 2,010 million by April 2026. Despite this growth, periodic contractions are evident, particularly in July 2022 and April 2024, indicating cyclical fluctuations in operating performance.
- Net Interest Expense Analysis
- Net interest expenses have trended generally upward, rising from 137 million in July 2021 to a peak of 209 million in October 2024. This increase in the cost of debt service has acted as a primary driver in the compression of the interest coverage ratio, offsetting some of the gains achieved through higher EBIT.
- Interest Coverage Ratio Dynamics
- A sharp improvement in the coverage ratio was observed between July 2021 and October 2021, where the ratio rose from 5.65 to 10.18. After reaching a peak of 11.02 in October 2022, a gradual downward trend occurred, reaching a low of 7.65 in April 2023. Since that trough, the ratio has remained resilient, fluctuating between 7.7 and 9.6, ending the period with a recovery to 9.58 in April 2026.
- Solvency Implications
- Despite the decline from the 2022 peaks, the maintained ratio above 7.0x indicates a strong capacity to service interest payments from operating profits. The stabilization seen in the final eight quarters suggests a balanced relationship between rising interest costs and improving operational efficiency.
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