Stryker Corporation (SYK)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	8,155,000	8,005,000	7,779,000	7,588,000	7,440,000	7,294,000	7,240,000	7,092,000	6,871,000	6,561,000	6,382,000	6,237,000	6,140,000	6,029,000	5,787,000	5,481,000	5,294,000	5,177,000	5,158,000	5,212,000
Inventory	US$ in thousands	4,774,000	5,292,000	5,044,000	5,026,000	4,843,000	4,883,000	4,593,000	4,333,000	3,995,000	3,883,000	3,749,000	3,525,000	3,314,000	3,434,000	3,431,000	3,473,000	3,494,000	3,459,000	3,442,000	3,359,000
Inventory turnover		1.71	1.51	1.54	1.51	1.54	1.49	1.58	1.64	1.72	1.69	1.70	1.77	1.85	1.76	1.69	1.58	1.52	1.50	1.50	1.55

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,155,000K ÷ $4,774,000K
= 1.71

The inventory turnover ratio of Stryker Corporation has shown some fluctuations over the reporting periods provided. The inventory turnover ratio measures how efficiently the company is able to manage its inventory by selling and replacing it within a certain time frame.

From March 31, 2020, to December 31, 2024, the inventory turnover ratio fluctuated between 1.49 and 1.85. A higher inventory turnover ratio generally indicates that the company is selling its goods quickly and efficiently, which is a positive indicator of operational performance.

According to the data provided, the inventory turnover ratio increased gradually from 1.55 on March 31, 2020, to a peak of 1.85 on December 31, 2021. This suggests that Stryker Corporation was managing its inventory more efficiently during this period. However, the ratio saw some fluctuations in subsequent periods, hovering between 1.49 and 1.77.

Overall, the inventory turnover ratio of Stryker Corporation indicates that the company is effectively managing its inventory, although there were some fluctuations in the ratio over the reporting periods. It is essential for the company to monitor and maintain a healthy inventory turnover ratio to ensure efficient operations and effective inventory management.