Presented below are selected financial data from the Medtronic 2018 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios: cash and marketable securities to total assets, quick ratio, current ratio, long-term debt to total assets, long-term debt to shareholders’ equity, and the interest coverage ratio. Evaluate Medtronic’s liquidity and solvency.
Presented below are selected financial data from the Medtronic 2018 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios: cash and marketable securities to total assets, quick ratio, current ratio, long-term debt to total assets, long-term debt to shareholders’ equity, and the interest coverage ratio. Evaluate Medtronic’s liquidity and solvency.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Presented below are selected financial data from the Medtronic 2018 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios: cash and marketable securities to total assets, quick ratio, current ratio, long-term debt to total assets, long-term debt to shareholders’ equity, and the interest coverage ratio. Evaluate Medtronic’s liquidity and solvency.
Transcribed Image Text:(amounts in millions)
2018
2017
Balance sheet
$ 4,393
5,470
$ 3,669
7,572
5,987
Cash and cash equivalents.
Marketable securities
Accounts receivable (net) .
7,951
Total current assets
24,084
24,974
Total assets..
89,694
91,403
8,363
1,000
23,698
50,729
Current liabilities
6,987
Current portion of long-term debt
Long-term debt..
Shareholders' equity.
500
24,476
50,091
Income statement
Interest expense.
$ 1,108
5,968
$ 1,094
5,131
Net income before taxes
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