Stryker Corporation (SYK)
Working capital 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 |
| Total current assets | US$ in thousands | 14,847,000 | 12,518,000 | 10,275,000 | 10,017,000 | 9,707,000 |
| Total current liabilities | US$ in thousands | 7,616,000 | 7,921,000 | 6,303,000 | 4,549,000 | 5,041,000 |
| Working capital turnover | 3.12 | 4.46 | 4.64 | 3.13 | 3.08 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,595,000K ÷ ($14,847,000K – $7,616,000K)
= 3.12
The working capital turnover for Stryker Corporation has shown a fluctuating trend over the past five years. It increased from 3.08 in 2020 to 3.13 in 2021, indicating slight improvement in efficiency in utilizing working capital. Subsequently, there was a significant jump to 4.64 in 2022, suggesting a notable improvement in the company's ability to generate revenue relative to its working capital. However, this high level was not sustained as the ratio decreased to 4.46 in 2023. Finally, in 2024, the working capital turnover dropped back to 3.12, nearing the initial level observed in 2020.
Overall, the working capital turnover ratio for Stryker Corporation has generally remained above 3, implying that the company is effectively using its working capital to support sales and generate revenue. The sharp increase in 2022 followed by a decrease in 2023 might indicate some shifts in the company's business operations or financial management during those years. Further analysis of the underlying factors driving these fluctuations would be necessary to gain a deeper understanding of the company's performance.
Peer comparison
Dec 31, 2024