Stryker Corporation (SYK)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,595,000 | 20,498,000 | 18,449,000 | 17,108,000 | 14,351,000 |
| Receivables | US$ in thousands | 3,987,000 | 3,765,000 | 3,565,000 | 3,022,000 | 2,701,000 |
| Receivables turnover | 5.67 | 5.44 | 5.18 | 5.66 | 5.31 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $22,595,000K ÷ $3,987,000K
= 5.67
The receivables turnover ratio for Stryker Corporation has shown a relatively stable trend over the years, fluctuating within a narrow range. The ratio was 5.31 in December 2020, increased to 5.66 in December 2021, decreased to 5.18 in December 2022, rose again to 5.44 in December 2023, and further increased to 5.67 in December 2024.
This indicates that, on average, Stryker Corporation collects its accounts receivable approximately 5.44 times a year, suggesting that the company efficiently manages its accounts receivable by converting them into cash in a timely manner. The rising trend in recent years reflects an improvement in the company's ability to collect receivables promptly, which is a positive sign of effective credit and collection policies.
Overall, the consistent and relatively high receivables turnover ratio for Stryker Corporation suggests that the company has a well-managed accounts receivable process and is successful in converting credit sales into cash efficiently.
Peer comparison
Dec 31, 2024