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-Q (reporting date: 2026-07-31), 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).
An analysis of solvency ratios reveals a period of relative stability characterized by a moderate increase in financial leverage toward the end of the observed timeframe, balanced by a consistently strong capacity to service debt obligations.
- Capital Structure and Leverage Trends
- The debt to equity ratio experienced an initial decline from 0.50 in July 2021 to a low of 0.44 in July 2022. Following this period, a gradual upward trend emerged, with the ratio peaking at 0.60 between July and October 2025 before stabilizing at 0.56 by July 2026. This movement is reflected in the financial leverage ratio, which mirrored the trend by rising from 1.71 in July 2022 to a peak of 1.91 in April 2025. Debt to capital and debt to assets ratios remained comparatively stable, though both exhibited a slight long-term increase, ending the period at 0.36 and 0.30, respectively.
- Interest Coverage and Debt Servicing Capacity
- Interest coverage ratios demonstrated significant volatility. An initial surge is observed from 5.65 in July 2021 to a peak of 11.02 in October 2022, indicating a substantial increase in the margin of safety for interest payments. A subsequent contraction occurred, with the ratio declining to a low of 7.65 by April 2024. However, a recovery phase followed, with the ratio trending upward to finish at 10.11 in July 2026. This suggests that despite the increase in total debt relative to equity, the organization maintains a robust ability to cover its interest expenses from operating profits.
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Debt Ratios
Coverage Ratios
Debt to Equity
Medtronic PLC, debt to equity calculation (quarterly data)
| Jul 31, 2026 | 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 | 2,536) | 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 | 25,617) | 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 | 28,153) | 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 | 50,232) | 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 | 0.56 | 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 | — | — | — | 0.64 | 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. | — | — | — | 0.69 | 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 | 0.00 | |||||||
| UnitedHealth Group Inc. | — | — | — | 0.74 | 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-Q (reporting date: 2026-07-31), 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 Q1 2027 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 28,153 ÷ 50,232 = 0.56
2 Click competitor name to see calculations.
An analysis of the solvency profile reveals a moderate expansion of leverage over the observed period, characterized by fluctuations in both total debt obligations and shareholders' equity.
- Debt to Equity Ratio Trends
- The debt to equity ratio exhibited a non-linear trajectory, beginning at 0.50 in July 2021 and reaching a minimum of 0.44 by July 2022. This period of deleveraging was followed by a temporary spike to 0.55 in January 2023, before returning to a stable range between 0.47 and 0.50 for approximately one year. A significant upward shift occurred starting in July 2024, with the ratio climbing to a peak of 0.60 by October 2025, before moderating to 0.56 by July 2026.
- Total Debt Dynamics
- Total debt levels fluctuated between a low of 23,210 million USD in July 2022 and a peak of 29,100 million USD in October 2025. A notable increase in borrowing is observed between April 2024 and July 2024, where debt rose from 25,024 million USD to 27,865 million USD, marking a shift toward higher leverage that persisted through 2025.
- Shareholders' Equity Fluctuations
- Shareholders' equity remained relatively stable during the initial phase, peaking at 52,672 million USD in July 2022. A gradual downward trend followed, reaching a low of 47,947 million USD in July 2024. This contraction of the equity base acted as a primary driver for the increase in the debt to equity ratio during the 2024-2025 period, although a gradual recovery to 50,232 million USD was observed by July 2026.
- Solvency Correlation and Summary
- The overall increase in the debt to equity ratio from 0.50 to 0.56 is the result of a synchronized increase in total debt and a simultaneous compression of shareholders' equity. The peak leverage ratio of 0.60 recorded in late 2025 represents the point of maximum divergence between debt growth and equity stability. The subsequent decline to 0.56 indicates a slight improvement in the solvency position heading into the final quarter of the analysis.
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Debt to Capital
Medtronic PLC, debt to capital calculation (quarterly data)
| Jul 31, 2026 | 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 | 2,536) | 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 | 25,617) | 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 | 28,153) | 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 | 50,232) | 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 | 78,385) | 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 | 0.36 | 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 | — | — | — | 0.39 | 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. | — | — | — | 0.41 | 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 | 0.00 | |||||||
| UnitedHealth Group Inc. | — | — | — | 0.43 | 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-Q (reporting date: 2026-07-31), 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 Q1 2027 Calculation
Debt to capital = Total debt ÷ Total capital
= 28,153 ÷ 78,385 = 0.36
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a period of initial deleveraging followed by a sustained increase in the debt-to-capital ratio. While total capital remained relatively stable throughout the period, total debt experienced several fluctuations, leading to a gradual shift in the overall capital structure toward a higher proportion of debt.
- Debt to Capital Ratio Evolution
- A downward trend was observed from July 2021 to July 2022, with the ratio declining from 0.34 to a low of 0.31. Following this period, the ratio entered a phase of volatility and gradual ascent, peaking at 0.37 between July 2024 and October 2025. By the final reporting periods in 2026, the ratio stabilized at 0.36, indicating a higher long-term reliance on borrowed funds compared to the 2021-2022 baseline.
- Total Debt Dynamics
- Total debt levels showed a notable contraction in the first year, reaching a minimum of 25,964 million USD in July 2021 and dropping to 23,210 million USD by July 2022. This was followed by a period of expansion and fluctuation, with a significant peak of 29,100 million USD observed in October 2025. The debt levels ended the analyzed period at 28,153 million USD, representing an overall increase in total liabilities.
- Total Capital Stability
- The total capital base demonstrated significant consistency, fluctuating within a narrow range between approximately 75,238 million USD and 79,569 million USD. The lack of substantial volatility in total capital suggests that the changes observed in the debt-to-capital ratio were primarily driven by changes in total debt rather than significant expansions or contractions of the overall capital base.
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Debt to Assets
Medtronic PLC, debt to assets calculation (quarterly data)
| Jul 31, 2026 | 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 | 2,536) | 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 | 25,617) | 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 | 28,153) | 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 | 93,306) | 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 | 0.30 | 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 | — | — | — | 0.30 | 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 | 0.25 | 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 | 0.00 | |||||||
| UnitedHealth Group Inc. | — | — | — | 0.24 | 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-Q (reporting date: 2026-07-31), 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 Q1 2027 Calculation
Debt to assets = Total debt ÷ Total assets
= 28,153 ÷ 93,306 = 0.30
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a period of relative stability punctuated by specific intervals of leverage expansion and contraction between July 2021 and July 2026.
- Debt to Assets Ratio Trends
- A gradual decrease in the debt-to-assets ratio is observed from July 2021 (0.28) to a low of 0.26 in July 2022, reflecting a period of effective debt reduction relative to the asset base. This trend reversed in late 2022, with the ratio reaching 0.30 by January 2023, before returning to a stable range of 0.27 to 0.28 throughout most of 2023 and early 2024.
- Recent Leverage Expansion
- A notable upward trend in leverage occurred between April 2024 and October 2025, during which the ratio climbed from 0.28 to a peak of 0.32. This increase correlates with total debt rising from approximately $25 billion to $29.1 billion, indicating a deliberate increase in borrowing or a shift in the capital structure during this window.
- Asset Base Stability
- Total assets remained remarkably consistent throughout the analyzed period, fluctuating within a narrow range between $89.7 billion and $94.1 billion. Because the asset base exhibited minimal volatility, changes in the debt-to-assets ratio are attributed almost exclusively to fluctuations in total debt levels rather than shifts in the scale of the company's holdings.
- Final Period Stabilization
- Toward the conclusion of the observation period, from January 2026 to July 2026, a slight correction is observed. Total debt decreased from $28.1 billion to $28.2 billion (following a peak of $29.1 billion), resulting in the debt-to-assets ratio stabilizing at 0.30.
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Financial Leverage
Medtronic PLC, financial leverage calculation (quarterly data)
| Jul 31, 2026 | Apr 24, 2026 | Jan 23, 2026 | Oct 24, 2025 | Jul 25, 2025 | Apr 25, 2025 | Jan 24, 2025 | Oct 25, 2024 | Jul 26, 2024 | Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 93,306) | 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 | 50,232) | 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 | 1.86 | 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 | — | — | — | 2.14 | 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. | — | — | — | 2.82 | 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 | 1.15 | 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. | — | — | — | 3.15 | 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-Q (reporting date: 2026-07-31), 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 Q1 2027 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 93,306 ÷ 50,232 = 1.86
2 Click competitor name to see calculations.
An analysis of solvency indicators reveals a moderate increase in financial leverage over the observed period. The upward trend in the leverage ratio is primarily attributable to a contraction in shareholders' equity rather than a significant expansion of the asset base, indicating a shift in the company's capital structure toward a higher proportion of debt or liabilities relative to equity.
- Total Asset Stability
- Total assets remained relatively stable, fluctuating within a range of approximately 89.7 billion USD to 94.1 billion USD. A peak was observed in January 2023 at 94,134 million USD, followed by a decline to a period low of 89,749 million USD in July 2024. By July 2026, total assets recovered to 93,306 million USD, showing minimal net variance from the starting position in July 2021.
- Shareholders' Equity Volatility
- Equity levels demonstrated consistency from July 2021 through January 2024, maintaining a range between 51,178 million USD and 52,672 million USD. A significant downward shift occurred in the first half of 2024, with equity falling to 47,947 million USD by July 2024. A slow recovery phase followed, with equity gradually increasing to 50,232 million USD by July 2026, though it remained below the levels seen in the 2021-2023 period.
- Financial Leverage Ratio Trends
- The financial leverage ratio initially trended downward from 1.78 in July 2021 to a low of 1.71 in July 2022. After a period of relative stability between 1.75 and 1.83, the ratio experienced a sharp increase starting in April 2024, rising to 1.87 and reaching a peak of 1.91 in January 2025. The ratio concluded the period at 1.86 in July 2026, confirming a sustained increase in leverage compared to the initial analysis period.
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Interest Coverage
Medtronic PLC, interest coverage calculation (quarterly data)
| Jul 31, 2026 | 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 | 1,470) | 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 | 9) | 15) | 7) | 7) | 7) | 5) | 9) | 8) | 7) | 6) | 15) | 2) | 6) | 9) | 7) | 8) | 2) | 8) | 3) | 6) | 6) | |||||||
| Add: Income tax expense | 290) | 574) | 254) | 216) | 255) | 200) | 237) | 281) | 219) | 196) | 135) | 402) | 399) | 361) | 146) | 960) | 113) | 109) | 106) | 176) | 64) | |||||||
| Add: Interest expense, net | 186) | 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) | 1,955) | 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 | 10.11 | 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 | — | — | — | 10.81 | 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. | — | — | — | 5.08 | 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. | — | — | — | 5.48 | 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-Q (reporting date: 2026-07-31), 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 Q1 2027 Calculation
Interest coverage
= (EBITQ1 2027
+ EBITQ4 2026
+ EBITQ3 2026
+ EBITQ2 2026)
÷ (Interest expenseQ1 2027
+ Interest expenseQ4 2026
+ Interest expenseQ3 2026
+ Interest expenseQ2 2026)
= (1,955 + 2,010 + 1,585 + 1,778)
÷ (186 + 177 + 181 + 181)
= 10.11
2 Click competitor name to see calculations.
The analysis of interest coverage over the observed period reveals a cyclical trajectory characterized by an initial surge in solvency strength, a mid-term decline, and a subsequent recovery toward historical norms.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating earnings exhibited significant volatility with a general upward bias. EBIT rose from a low of 970 million USD in July 2021 to a peak of 2,010 million USD in April 2026. A notable contraction occurred in April 2024, where EBIT fell to 1,059 million USD, representing a temporary dip in operating profitability before a sustained recovery began in the latter half of 2024.
- Interest Expense Dynamics
- Net interest expenses showed a gradual increasing trend during the first half of the period. Expenses rose from approximately 137 million USD in 2021 to a peak of 209 million USD in October 2023. Following this peak, interest costs stabilized, fluctuating within a narrow band between 174 million USD and 186 million USD from January 2025 through July 2026.
- Interest Coverage Ratio Analysis
- The interest coverage ratio experienced three distinct phases. First, a period of rapid improvement occurred between July 2021 and October 2022, with the ratio climbing from 5.65 to a peak of 11.02. Second, a steady decline was observed from January 2023 to April 2024, where the ratio reached a period low of 7.65, driven by the simultaneous increase in interest expenses and a decline in quarterly EBIT. Third, a recovery phase emerged from July 2024 onward, with the ratio returning to 10.11 by July 2026.
- Solvency Synthesis
- Despite the periodic decline in the coverage ratio, the organization maintained a substantial margin of safety throughout the entire period. The ratio remained well above 1.0, indicating that operating profits were consistently sufficient to cover interest obligations. The final upward trend in the ratio is primarily attributed to the growth in EBIT outpacing the relatively stable net interest costs in the final six quarters.
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