Medtronic plc. — Earnings Quality Grade F
MDT · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 71 days, change +2 days YoY
AR growth 6.3% vs revenue growth 3.6%
Revenue 3.6%, CFFO 3.8%. Cash follows revenue
Expense Quality
Inventory 5.0% vs COGS 3.7%. Normal
CapEx growth 17.1% vs revenue 3.6%. Normal
SG&A/Gross Profit = 49.5%. Normal
Gross margin 65.3%, change -0.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.51. Profits backed by cash
FCF $5.2B, FCF/NI = 1.11
Accruals ratio = -2.6%. Low accruals
Cash $9.0B covers only 31% of debt $28.5B
Balance Sheet Health
Goodwill+Intangibles $53.4B = 111% of equity. Over 50%
Debt/EBITDA = 3.1x. Healthy
Other assets -11.4% vs revenue 3.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.58 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09