Stryker Corporation (SYK)

Working capital 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
Total current assets	US$ in thousands	14,847,000	14,673,000	11,645,000	11,892,000	12,518,000	11,045,000	10,151,000	10,155,000	10,275,000	9,318,000	8,825,000	8,725,000	10,017,000	9,460,000	9,032,000	8,979,000	9,707,000	13,545,000	12,801,000	10,736,000
Total current liabilities	US$ in thousands	7,616,000	7,669,000	6,926,000	6,955,000	7,921,000	7,458,000	6,584,000	5,866,000	6,303,000	4,571,000	4,404,000	4,408,000	4,549,000	4,449,000	4,252,000	3,953,000	5,041,000	4,689,000	4,405,000	4,162,000
Working capital turnover		3.12	3.14	4.53	4.25	4.46	5.54	5.45	4.42	4.64	3.78	3.99	4.04	3.13	3.33	3.40	2.93	3.08	1.61	1.68	2.28

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,595,000K ÷ ($14,847,000K – $7,616,000K)
= 3.12

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations.

Based on the data provided for Stryker Corporation, we can see fluctuations in the working capital turnover ratio over the past few years. The ratio has shown an increasing trend from 2020 to 2023, indicating improved efficiency in utilizing working capital to generate sales. This suggests that the company has been able to effectively manage its current assets and liabilities to support its business operations.

However, in 2024, there is a noticeable decrease in the working capital turnover ratio, which may suggest a potential slowdown in the efficiency of working capital utilization. It is important for the company to closely monitor and analyze the factors contributing to this decline to ensure effective management of working capital in the future.

Overall, a detailed analysis of Stryker Corporation's working capital turnover ratio reveals fluctuations over the years, highlighting the importance of continuous monitoring and strategic management of working capital to support business operations and drive sustainable growth.