Medtronic PLC (NYSE:MDT)

The financial ratios exhibit various trends over the presented periods. The debt-related ratios—debt to equity, debt to capital, and debt to assets—show relative stability with minor fluctuations, indicating a consistent capital structure.

Debt to equity ratio

This ratio fluctuates moderately between 0.44 and 0.60 across the time frame. After a slight decline from 0.52 in mid-2019 to 0.44 in mid-2022, it rises again to approximately 0.60 towards mid-2025. This pattern suggests periods of increased leverage followed by partial deleveraging, reflecting the company's varying approach to balancing equity and debt financing over time.

Debt to capital ratio

The debt to capital ratio remains within a narrow band between 0.31 and 0.37. The ratio exhibits minor increases corresponding with the rises seen in the debt to equity ratio, particularly noticeable in early 2025. This consistency indicates a measured use of debt relative to the total capital base, with no significant volatility.

Debt to assets ratio

The ratio remains predominantly steady, ranging from 0.26 to 0.31. Periodic small rises and declines mirror the debt to equity and debt to capital trends, confirming a stable asset financing strategy without major shifts in indebtedness relative to total assets.

Financial leverage ratio

Financial leverage hovers between 1.71 and 1.92. Following a decreasing trend from approximately 1.81 in mid-2019 to 1.71 in mid-2022, it then increases again to nearly 1.91 by mid-2025. This pattern aligns with debt ratio fluctuations, signifying the recurring adjustments in the capital structure influencing overall leverage.

Interest coverage ratio

The interest coverage ratio displays notable upward movement from 4.71 in early 2020, peaking above 11 in mid-2022, denoting improved ability to meet interest obligations. Post-peak, it decreases gradually but remains strong, above 7 from late 2022 through mid-2025. The initial rise suggests enhanced earnings relative to interest expenses, possibly from improved operational performance or reduced interest costs. The subsequent decline, although moderate, still reflects a comfortable interest coverage position.

Overall, the trends indicate that while the company experiences modest cyclical variations in leverage, it maintains a prudent capital structure with stable debt levels in proportion to equity, capital, and assets. The strong interest coverage ratios underscore the entity’s capacity to service debt comfortably, despite fluctuations. This stability supports financial flexibility and suggests effective management of the company's financing and operational conditions over the observed periods.

Total Debt

The total debt exhibits fluctuations over the observed periods, starting at approximately 26.3 billion US dollars in mid-2019. There is an initial decline until early 2020, followed by a rise peaking around 30 billion by late 2020 and early 2021. Subsequently, the debt shows a general downward trend from 30 billion to about 23.2 billion by mid-2022. After this trough, a series of increases and decreases occur, with values ranging between roughly 24 billion and 28.3 billion until mid-2025, ending near 28.6 billion. This indicates periods of both deleveraging and increased borrowing.

Shareholders’ Equity

Shareholders’ equity remains relatively stable throughout the timeline, mostly fluctuating in a range between approximately 47.9 billion and 52.8 billion US dollars. Initially, equity shows a mild upward movement from 50.4 billion in mid-2019 to a peak of approximately 52.7 billion by mid-2022. From this peak, a gradual decline is observed, dropping below 48 billion by mid-2025. The equity decreases appear modest but consistent in the latter periods.

Debt to Equity Ratio

The debt to equity ratio mirrors the trends seen in total debt and equity figures, with values generally ranging between 0.44 and 0.6. Initially, the ratio remains below 0.52 through early 2020, then increases during late 2020 and early 2021, peaking at around 0.6. This is followed by a decrease towards mid-2022 reaching a low of 0.44, implying a stronger equity base relative to debt. Subsequently, the ratio rises again, fluctuating near the upper 0.5s and reaching about 0.6 by mid-2025. These oscillations indicate variable leverage with periods of increased reliance on debt relative to equity and vice versa.

The analysis of the financial leverage metrics over the examined periods indicates a generally stable debt to capital structure with some fluctuations.

Total Debt

The total debt levels exhibit moderate variability, initially declining from approximately US$26.3 billion in mid-2019 to about US$24.1 billion by early 2022. Subsequently, there is a notable increase reaching around US$28.1 billion by early 2023, followed by further fluctuations with a peak near US$28.8 billion by mid-2025. This pattern suggests periods of both deleveraging and increased borrowing over the years.

Total Capital

Total capital values remain relatively consistent, fluctuating between approximately US$75.2 billion and US$81.1 billion throughout the time frame. The capital base shows minor declines and recoveries but maintains an overall stable range, indicating steady capital resources alongside the changing debt levels.

Debt to Capital Ratio

The debt to capital ratio mostly hovers between 0.31 and 0.37, reflecting moderate leverage. Initially, the ratio ranges around 0.33 to 0.34, then peaks near 0.37 multiple times, especially in late 2020, early 2021, and then again toward the end of the data period in 2024 and 2025. Temporary reductions in this ratio correspond with periods of lower debt or increased capital, but the general trend does not show a definitive increase or decrease, implying a maintained balance between debt and capital.

In summary, the financial structure shows strategic management of debt levels to maintain a leverage ratio within a narrow band. The company appears to balance borrowing with capital resources, avoiding extreme fluctuations in financial leverage over the analyzed quarterly periods.

Total Debt

The total debt levels exhibit fluctuations over the observed periods. Starting at $26,262 million in July 2019, the debt declined slightly until April 2020, then increased, peaking at $30,323 million in January 2021. Following this peak, the debt generally decreased to around $23,210 million by July 2022, before rising again and showing more volatility through subsequent quarters, reaching roughly $28,609 million by July 2025.

Total Assets

Total assets maintained relative stability throughout the periods, beginning near $91,268 million in July 2019. While minor fluctuations occurred, with peaks around $97,270 million in January 2021 and lows approximately $89,714 million in July 2022 and later dates, the overall asset base remained in a narrow range, generally between $89,000 million and $93,000 million. There is no clear sustained upward or downward trend.

Debt to Assets Ratio

The debt to assets ratio ranges between 0.26 and 0.31 during the periods, reflecting moderate leverage levels. Early values near 0.29 in mid-2019 decline slightly to 0.27 by April 2020, then increase again to 0.31 by early 2021. Post that peak, the ratio dips to approximately 0.26 by July 2022. It then fluctuates around 0.28 before approaching the higher bound of 0.31 again towards mid-2025. The ratio’s movement aligns with the debt fluctuation, while asset values remain comparatively stable, suggesting that changes in leverage are primarily driven by variations in debt levels.

The analysis of the quarterly financial data reveals several notable trends in the company's asset base, equity position, and financial leverage over the observed periods.

Total Assets

The total assets exhibited fluctuations throughout the period from July 2019 to July 2025. Initially, assets were just above 91 billion US dollars, with a slight dip observed in April 2020, likely reflecting external market pressures. A recovery followed, with total assets fluctuating around the 90 to 94 billion range. In the most recent quarters, total assets stabilized near the 90 to 92 billion band, indicating a relative consistency in the asset base without a strong growth trend.

Shareholders’ Equity

Shareholders' equity showed a gradual increase from approximately 50.4 billion US dollars in mid-2019, peaking around early 2022 near 52.6 billion. Following this peak, equity demonstrated a slow declining trend, reaching below 48 billion by mid-2025. This pattern suggests a depletion of equity in the latter periods, potentially influenced by factors such as share buybacks, dividends, or net losses. The decline in equity in the recent years could warrant further examination to understand the underlying causes.

Financial Leverage

Financial leverage ratios fluctuated modestly, primarily oscillating between 1.7 and 1.9. Early in the series, leverage was around 1.8, increased toward 1.9 during late 2020 and early 2021, then declined to the low 1.7 range by 2022. In the later years, leverage again increased slightly to above 1.9 before easing somewhat but remaining elevated compared with the earlier periods. This trajectory indicates the company increased its relative debt level over equity during certain periods, followed by partial deleveraging, but maintained a moderately leveraged financial structure overall.

Overall, the data indicates a company maintaining a relatively stable asset base with some volatility in equity levels and a moderately leveraged capital structure. The modest rise and subsequent fall in shareholders’ equity coupled with the fluctuations in leverage suggest active capital management and financing adjustments during the period. Continued monitoring of equity trends and leverage ratios would be advisable to assess financial risk and capital efficiency moving forward.

The data reveals fluctuations in the Earnings Before Interest and Tax (EBIT) over the observed periods. Initially, EBIT exhibits a moderate range between approximately 1459 to 1735 million USD from July 2019 through January 2020. There is a notable decline in April 2020 to 367 million USD, followed by a recovery with a consistent upward trend reaching values such as 1707 million USD by April 2021. Subsequently, the EBIT shows volatility, with intermittent dips and rises, notably decreasing in July 2021 (970 million USD) before again increasing to over 1700 million USD in subsequent quarters. From early 2022 onwards, EBIT generally remains above 1200 million USD but displays irregular fluctuations, particularly decreases in July 2022 and April 2024.

Interest expense, net, fluctuates less dramatically in relative terms across the periods, mostly ranging between approximately 137 and 176 million USD. The interest expense displays some moderate variability but lacks a clear upward or downward trend. The highest spikes in interest expense appear around October 2020 (470 million USD), which is an outlier compared to other quarters. Apart from this outlier, the interest expense remains comparatively stable despite the movements in EBIT.

The interest coverage ratio, which measures the ability to cover interest expense with earnings, is missing data for several early periods but shows values starting from April 2020. It demonstrates a generally strong capacity to cover interest expenses, with values consistently above 4 and often exceeding 7. The ratio increases significantly from April 2020 onward, peaking at approximately 11 in early 2022, indicating a strong buffer between EBIT and interest burden during that period. Following this peak, the ratio decreases somewhat but remains stable and above 7 in the most recent quarters, indicating sustained, although somewhat reduced, coverage ability.

Overall, the data suggests that while EBIT has experienced some volatility, particularly around mid-2020 and sporadically thereafter, the interest expense has remained relatively contained except for a spike in late 2020. The interest coverage ratio supports this, evidencing generally robust earnings relative to interest obligations. The decline and recovery in EBIT during 2020 likely reflect external factors impacting operational performance, but subsequent periods show resilience in earnings capacity. The sustained high interest coverage ratios imply that the company maintains a comfortable position to meet interest obligations throughout the periods analyzed.

EBIT Trends

Fluctuating but generally strong earnings with a significant dip in early 2020 followed by recovery and intermittent volatility thereafter.

Interest Expense

Relatively stable with a single notable spike in Q4 2020, otherwise consistent within a narrow range.

Interest Coverage Ratio

Strong coverage post-Q1 2020, peaking in early 2022, with sustained adequate levels indicating sufficient earnings to cover interest costs.