Stryker Corporation (SYK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,971,000 | 1,844,000 | 2,944,000 | 2,943,000 | 4,337,000 |
| Short-term investments | US$ in thousands | 82,000 | 84,000 | 75,000 | 81,000 | 88,000 |
| Total current liabilities | US$ in thousands | 7,921,000 | 6,303,000 | 4,549,000 | 5,041,000 | 4,400,000 |
| Cash ratio | 0.39 | 0.31 | 0.66 | 0.60 | 1.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,971,000K
+ $82,000K)
÷ $7,921,000K
= 0.39
The cash ratio measures a company's ability to cover its short-term obligations using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
In the case of Stryker Corp., the cash ratio has experienced fluctuations over the past five years. In 2019, the cash ratio was relatively high at 1.18, indicating a strong ability to meet short-term obligations with cash on hand. However, the ratio decreased to 0.70 in 2020, signaling a potential decrease in liquidity.
The cash ratio further declined to 0.81 in 2021 before dropping to 0.43 in 2022, which may raise concerns about the company's liquidity position. However, in 2023, the cash ratio improved to 0.49, suggesting a better ability to cover short-term liabilities with available cash.
Overall, the fluctuating trend in Stryker Corp.'s cash ratio indicates varying levels of liquidity over the years, with potential implications for the company's ability to meet its short-term financial obligations. Further analysis of the company's cash management practices and overall financial health may provide additional insights into its liquidity position.
Peer comparison
Dec 31, 2023