Stryker Corporation (SYK)

Receivables 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
Revenue (ttm) US$ in thousands 22,595,000 21,974,000 21,389,000 20,963,000 20,498,000 19,885,000 19,455,000 18,952,000 18,449,000 17,948,000 17,629,000 17,430,000 17,108,000 16,669,000 16,246,000 14,716,000 14,351,000 14,220,000 14,070,000 14,956,000
Receivables US$ in thousands 3,987,000 3,736,000 3,622,000 3,473,000 3,765,000 3,276,000 3,261,000 3,215,000 3,565,000 3,103,000 3,145,000 2,991,000 3,022,000 2,817,000 2,714,000 2,616,000 2,701,000 2,426,000 2,203,000 2,646,000
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $22,595,000K ÷ $3,987,000K
= 5.67

The receivables turnover ratio for Stryker Corporation has fluctuated over the past years, ranging from a low of 5.18 to a high of 6.39. This ratio measures how efficiently the company is collecting payments from its customers. A higher turnover ratio indicates that Stryker is collecting receivables more quickly, which is generally a positive sign of efficient operations.

Analyzing the trend, we can see that the receivables turnover ratio has generally remained within a narrow range, with slight variations from quarter to quarter. The most recent data shows that the ratio has been around 5.67 to 6.04, indicating a consistent collection of receivables.

It is important for Stryker Corporation to maintain a stable or increasing receivables turnover ratio to ensure smooth cash flow and efficient working capital management. A declining ratio may suggest potential issues with customer creditworthiness or collection processes, while a significantly high ratio could indicate overly aggressive credit policies.

Overall, the receivables turnover ratio analysis suggests that Stryker Corporation has been effectively managing its accounts receivable, maintaining a balance between timely collections and customer relationships.


See also:

Stryker Corporation Receivables Turnover (Quarterly Data)