Stryker Corporation (SYK)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.67	5.88	5.91	6.04	5.44	6.07	5.97	5.89	5.18	5.78	5.61	5.83	5.66	5.92	5.99	5.63	5.31	5.86	6.39	5.65
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
Working capital turnover	3.12	3.14	4.53	4.25	4.46	5.54	5.45	4.42	4.64	3.78	3.99	4.04	3.13	3.33	3.40	2.93	3.08	1.61	1.68	2.28

Stryker Corporation's activity ratios provide insights into how efficiently the company manages its assets and operations. Let's analyze the key activity ratios based on the provided data:

1. Inventory Turnover:
- Stryker's inventory turnover has shown fluctuations over the periods analyzed, ranging from 1.49 to 1.85 times per year.
- The increasing trend from March 2021 to December 2022 suggests improved efficiency in managing inventory levels or increased sales volume relative to average inventory.

2. Receivables Turnover:
- The company's receivables turnover ratio has varied between 5.18 and 6.07 times per year.
- Generally, a higher receivables turnover ratio indicates quicker collection of receivables, which is a positive sign for cash flow management.

3. Payables Turnover:
- Stryker's payables turnover has exhibited a decreasing trend, indicating a slower rate of paying off trade payables over time.
- The ratios range from 4.86 to 8.12 times per year, with a notable decrease from June 2021 to December 2024.

4. Working Capital Turnover:
- The working capital turnover ratio demonstrates how effectively the company generates revenue relative to its working capital.
- Stryker's working capital turnover has varied between 1.61 and 5.54 times per year, with significant fluctuations indicating changes in working capital efficiency.

Overall, analyzing these activity ratios provides a comprehensive view of Stryker Corporation's operational efficiency, inventory management, receivables collection, payables management, and utilization of working capital. It is essential for stakeholders to monitor these ratios to assess the company's ability to effectively utilize its resources and optimize its operational performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	213.67	241.30	236.67	241.76	237.59	244.35	231.55	223.00	212.22	216.02	214.41	206.29	197.00	207.90	216.40	231.28	240.90	243.87	243.57	235.23
Days of sales outstanding (DSO)	days	64.41	62.06	61.81	60.47	67.04	60.13	61.18	61.92	70.53	63.10	65.12	62.63	64.47	61.68	60.98	64.88	68.70	62.27	57.15	64.58
Number of days of payables	days	75.15	60.96	61.19	59.94	74.42	64.85	66.85	70.30	75.06	67.48	66.34	63.44	67.11	56.55	54.49	51.08	55.85	45.62	44.94	51.54

Stryker Corporation's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, ranging from a high of 244.35 days on September 30, 2023, to a low of 197.00 days on December 31, 2021. The trend indicates that the company has been managing its inventory levels more efficiently in recent years, with a slight increase noted in the most recent data as of December 31, 2024.

In terms of Days of Sales Outstanding (DSO), Stryker Corporation has generally maintained a consistent performance, with minor fluctuations observed across the years. The DSO ratio peaked at 70.53 days on December 31, 2022, and hit a low of 57.15 days on June 30, 2020. The data suggests that the company has been successful in collecting its accounts receivable within a reasonable timeframe, although there was a slight uptick in DSO on December 31, 2024.

The Number of Days of Payables ratio for Stryker Corporation has seen fluctuations as well, ranging from 75.15 days on December 31, 2024, to 44.94 days on June 30, 2020. The trend indicates that the company has been extending its payment periods to suppliers over the years, with an increase in the payables days observed in the most recent data as of December 31, 2024.

Overall, while there have been fluctuations in these activity ratios for Stryker Corporation, the company appears to have managed its inventory, accounts receivable, and payables effectively to support its operations and financial performance.

Long-term

	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
Fixed asset turnover	6.55	6.41	6.45	6.43	6.38	6.40	6.31	6.24	6.21	6.41	6.29	6.24	6.04	6.07	5.93	5.43	5.21	5.62	5.57	5.74
Total asset turnover	0.53	0.50	0.55	0.53	0.51	0.52	0.52	0.51	0.50	0.50	0.49	0.48	0.49	0.49	0.48	0.44	0.42	0.44	0.45	0.51

Stryker Corporation's fixed asset turnover ratio has shown a consistent upward trend over the years, indicating that the company has been able to generate more revenue from its fixed assets efficiently. The ratio increased steadily from 5.74 in March 2020 to 6.55 in December 2024, with some fluctuations in between.

In terms of total asset turnover, Stryker's performance has been relatively stable, hovering around the range of 0.42 to 0.55 during the period analyzed. This ratio measures the company's ability to generate sales from its total assets. Although there was some variability, the ratio generally improved from 0.42 in December 2020 to 0.53 in December 2024.

Overall, the increasing trend in the fixed asset turnover ratio coupled with the stable total asset turnover ratio suggests that Stryker Corporation has been effectively utilizing its assets to generate sales and improve operational efficiency over the years.