Stryker Corporation (SYK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,498,000 | 18,449,000 | 17,108,000 | 14,351,000 | 14,884,000 |
| Receivables | US$ in thousands | 3,765,000 | 3,565,000 | 3,022,000 | 2,701,000 | 2,893,000 |
| Receivables turnover | 5.44 | 5.18 | 5.66 | 5.31 | 5.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $20,498,000K ÷ $3,765,000K
= 5.44
The receivables turnover ratio indicates how efficiently a company is able to collect outstanding receivables from its customers within a certain period. For Stryker Corp., we observe fluctuations in the receivables turnover ratio over the past five years.
In 2019, the receivables turnover ratio was 5.14 times, indicating that the company collected outstanding receivables approximately five times during that year. The ratio improved in 2020 to 5.31 times, suggesting a slightly more efficient collection of receivables.
However, in 2021, the ratio significantly increased to 5.66 times, indicating that Stryker Corp. was able to collect receivables at a faster pace compared to the previous years. This trend reversed in 2022 to 5.18 times, reflecting a slight decrease in receivables turnover efficiency.
In the most recent year, 2023, Stryker Corp. saw an improvement in the receivables turnover ratio to 5.44 times. This suggests that the company managed to enhance its collection process, albeit not as efficiently as in 2021.
Overall, fluctuations in the receivables turnover ratio for Stryker Corp. indicate varying levels of efficiency in collecting outstanding receivables over the past five years. It is important for the company to continue monitoring and managing its receivables effectively to maintain a healthy cash flow and liquidity position.
Peer comparison
Dec 31, 2023