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GuruFocus has detected 6 Warning Signs with Medtronic PLC \$MDT.
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Medtronic PLC (NYSE:MDT)
Debt-to-Equity
0.65 (As of Jan. 2017)

Medtronic PLC's current portion of long-term debt for the quarter that ended in Jan. 2017 was \$6,226 Mil. Medtronic PLC's long-term debt for the quarter that ended in Jan. 2017 was \$25,923 Mil. Medtronic PLC's total equity for the quarter that ended in Jan. 2017 was \$49,387 Mil. Medtronic PLC's debt to equity for the quarter that ended in Jan. 2017 was 0.65.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Medtronic PLC's Debt to Equity Ratio for the fiscal year that ended in Apr. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (993 + 30247) / 52063 = 0.60

Medtronic PLC's Debt to Equity Ratio for the quarter that ended in Jan. 2017 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (6226 + 25923) / 49387 = 0.65

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Medtronic PLC Annual Data

 Apr07 Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 deb2equity 0.56 0.60 0.51 0.65 0.62 0.62 0.57 0.61 0.68 0.60

Medtronic PLC Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 deb2equity 0.70 1.43 0.68 0.67 0.69 0.71 0.60 0.63 0.65 0.65
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