Stryker Corporation (SYK)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.90 | 4.86 | 5.44 | 6.54 | 7.69 | |
| Number of days of payables | days | 74.42 | 75.06 | 67.11 | 55.85 | 47.49 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.90
= 74.42
Stryker Corp.'s number of days of payables has exhibited a generally increasing trend over the past five years. The company's days of payables was 74.42 days as of December 31, 2023, marking a slight decrease from the previous year's 75.06 days. In comparison to the data from previous years, the number of days of payables has shown a consistent upward trajectory, with the figure standing at 67.11 days in 2021, 55.85 days in 2020, and 47.49 days in 2019.
The rise in the number of days of payables may indicate that Stryker Corp. is taking longer to settle its outstanding payables to suppliers and vendors. An increase in this ratio could suggest potential liquidity or cash flow challenges for the company, as it delays paying its obligations. However, it could also reflect a deliberate strategy to manage working capital more effectively by extending payment terms.
Further analysis of Stryker Corp.'s financial performance and cash flow position, in conjunction with other relevant financial ratios, would provide a more comprehensive understanding of the implications of the changing trend in the number of days of payables.
Peer comparison
Dec 31, 2023