Stryker Corporation (SYK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,498,000 | 18,449,000 | 17,108,000 | 14,351,000 | 14,884,000 |
| Property, plant and equipment | US$ in thousands | 3,215,000 | 2,970,000 | 2,833,000 | 2,752,000 | 2,567,000 |
| Fixed asset turnover | 6.38 | 6.21 | 6.04 | 5.21 | 5.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,498,000K ÷ $3,215,000K
= 6.38
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets.
From 2019 to 2023, Stryker Corp.'s fixed asset turnover has been consistently improving from 5.80 to 6.38. This indicates that Stryker Corp. has been able to generate more sales revenue per dollar of its fixed assets invested over the years.
The increasing trend in fixed asset turnover suggests that Stryker Corp. is effectively managing and utilizing its fixed assets to drive revenue growth. This improvement could be attributed to various factors such as better operational efficiency, effective asset management strategies, or increasing demand for the company's products and services.
Overall, the steady growth in fixed asset turnover reflects positively on Stryker Corp.'s operational efficiency and signifies that the company is effectively leveraging its fixed assets to generate sales.
Peer comparison
Dec 31, 2023