Stryker Corporation (SYK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,440,000 | 6,871,000 | 6,140,000 | 5,294,000 | 5,188,000 |
| Inventory | US$ in thousands | 4,843,000 | 3,995,000 | 3,314,000 | 3,494,000 | 2,980,000 |
| Inventory turnover | 1.54 | 1.72 | 1.85 | 1.52 | 1.74 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,440,000K ÷ $4,843,000K
= 1.54
The inventory turnover ratio for Stryker Corp. has shown some fluctuation over the past five years. It decreased from 1.58 in 2019 to 1.52 in 2020, suggesting that the company took longer to sell its inventory in 2020 compared to the previous year. However, there was an improvement in 2021, with the ratio increasing to 1.85 and indicating that Stryker managed its inventory more efficiently that year.
In 2022, the inventory turnover ratio slightly declined to 1.72 but remained relatively stable. The most recent data for 2023 shows a further decrease to 1.54, which may indicate that Stryker took longer to sell its inventory during that year compared to 2022.
Overall, the fluctuation in Stryker's inventory turnover ratio suggests varying levels of efficiency in managing its inventory levels and sales over the past five years. It would be beneficial for the company to analyze the reasons behind these fluctuations and implement strategies to optimize its inventory turnover in the future.
Peer comparison
Dec 31, 2023