Stryker Corporation (SYK)
Payables 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 |
| Payables | US$ in thousands | 1,679,000 | 1,337,000 | 1,304,000 | 1,246,000 | 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 |
| Payables turnover | 4.86 | 5.99 | 5.97 | 6.09 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,155,000K ÷ $1,679,000K
= 4.86
Stryker Corporation's payables turnover ratio has shown fluctuating trends over the past few years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a specific period.
Based on the provided data:
- The payables turnover ratio ranged from a high of 8.12 in June 2020 to a low of 4.86 in December 2022.
- Overall, the payables turnover ratio has been on a gradual decline from 2020 to 2024, indicating a lengthening time taken by Stryker Corporation to pay off its accounts payable.
- The trend suggests that the company might be taking longer to settle its payables, which could impact its relationships with suppliers or reflect changes in the company's purchasing and payment policies.
- A lower payables turnover ratio may also indicate potential liquidity issues or inefficiencies in managing working capital.
In summary, the decreasing trend in Stryker Corporation's payables turnover ratio over the years warrants further investigation into the company's accounts payable management practices, supplier relationships, and overall working capital efficiency.
Peer comparison
Dec 31, 2024