Stryker Corporation (SYK)
Payables 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 |
| Payables | US$ in thousands | 1,517,000 | 1,296,000 | 1,326,000 | 1,366,000 | 1,413,000 | 1,213,000 | 1,160,000 | 1,084,000 | 1,129,000 | 934,000 | 864,000 | 767,000 | 810,000 | 647,000 | 635,000 | 736,000 | 675,000 | 659,000 | 616,000 | 619,000 |
| Payables turnover | 4.90 | 5.63 | 5.46 | 5.19 | 4.86 | 5.41 | 5.50 | 5.75 | 5.44 | 6.46 | 6.70 | 7.15 | 6.54 | 8.00 | 8.12 | 7.08 | 7.69 | 7.74 | 8.00 | 7.74 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,440,000K ÷ $1,517,000K
= 4.90
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times in a given period the company pays off its suppliers. A higher payables turnover ratio indicates that the company is able to settle its payables more quickly, which can suggest better cash flow management and potential discounts for early payment.
Analyzing the payables turnover for Stryker Corp. over the past eight quarters, we can observe the following trend:
- The payables turnover ratio has ranged from 4.86 to 5.75 over the past two years, indicating relatively consistent performance in managing its accounts payable.
- The ratio has shown fluctuations on a quarterly basis, with values ranging from 4.90 to 5.75. This variability suggests potential changes in the company's payment practices or business operations.
- On average, Stryker Corp. has a payables turnover ratio slightly above 5, reflecting that the company is efficient in paying its suppliers within a reasonable timeframe.
Overall, the payables turnover analysis suggests that Stryker Corp. has been effectively managing its accounts payable by maintaining a relatively stable turnover ratio over the examined period.
Peer comparison
Dec 31, 2023