Stryker Corporation (SYK)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	5,188,000	5,100,000	4,930,000	4,792,000
Inventory	US$ in thousands	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	2,980,000	3,269,000	3,198,000	3,064,000
Inventory turnover		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	1.74	1.56	1.54	1.56

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,440,000K ÷ $4,843,000K
= 1.54

Stryker Corp.'s inventory turnover ratio has shown some fluctuation over the past eight quarters. The inventory turnover ratio measures the efficiency with which a company manages its inventory levels by indicating how many times the company sold and replaced its inventory during a specific period.

The lowest inventory turnover ratio was observed in Q4 2023 at 1.54, indicating that Stryker Corp. took approximately 1.54 times to sell and replace its inventory during that quarter. Conversely, the highest turnover ratio was recorded in Q1 2022 at 1.77, suggesting that Stryker Corp. was able to turn over its inventory more frequently during that period.

Overall, the trend in the inventory turnover ratio for Stryker Corp. has shown some variability but has generally remained within a relatively narrow range between 1.49 and 1.77 over the past eight quarters. This could imply that the company has been managing its inventory efficiently, balancing the need to avoid stockouts with the aim of reducing carrying costs associated with excess inventory.

Further analysis of the inventory turnover ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of Stryker Corp.'s inventory management effectiveness and operational performance.