Stryker Corporation (SYK)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 14,884,000 | 14,549,000 | 14,204,000 | 13,876,000 |
| Receivables | US$ in thousands | 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 | 2,893,000 | 2,438,000 | 2,408,000 | 2,284,000 |
| Receivables turnover | 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 | 5.14 | 5.97 | 5.90 | 6.08 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $20,498,000K ÷ $3,765,000K
= 5.44
The receivables turnover ratio measures how efficiently a company collects its accounts receivable during a specific period. A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing Stryker Corp.'s receivables turnover ratio over the last eight quarters, we observe fluctuations in the ratio. In Q3 2023, the ratio was at its highest at 6.07, suggesting that Stryker was collecting its receivables more efficiently during that quarter. Comparing this to Q4 2022 and Q3 2022, where the ratios were 5.18 and 5.78 respectively, we see an improvement in Q3 2023.
Despite the fluctuations, Stryker Corp. maintains a relatively stable range for its receivables turnover ratio, hovering between 5.18 and 6.07 over the observed quarters. This indicates that the company has been effectively managing its receivables and collecting payments from customers in a timely manner.
Overall, Stryker Corp. has shown a consistent ability to efficiently convert its accounts receivable into cash, contributing to its overall financial health and stability. Monitoring this ratio over time can provide valuable insights into the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023