Stryker Corporation (SYK)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	3,652,000	2,971,000	1,844,000	2,944,000	2,943,000
Short-term investments	US$ in thousands	841,000	82,000	84,000	75,000	81,000
Total current liabilities	US$ in thousands	7,616,000	7,921,000	6,303,000	4,549,000	5,041,000
Cash ratio		0.59	0.39	0.31	0.66	0.60

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,652,000K + $841,000K) ÷ $7,616,000K
= 0.59

The cash ratio for Stryker Corporation has shown fluctuations over the past five years.

As of December 31, 2020, the cash ratio was 0.60, indicating that the company had $0.60 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively healthy liquidity position at that time.

By December 31, 2021, the cash ratio had improved to 0.66, reflecting a stronger ability to cover short-term obligations with cash on hand.

However, by December 31, 2022, the cash ratio declined significantly to 0.31, signaling a decrease in the company's liquidity position. This could be a cause for concern as it may indicate potential difficulties in meeting short-term financial obligations.

The cash ratio improved slightly by December 31, 2023, to 0.39, but it still remained relatively low compared to the previous years.

As of December 31, 2024, the cash ratio increased to 0.59, suggesting a partial recovery in the company's liquidity position.

Overall, the trend in Stryker Corporation's cash ratio indicates some fluctuations in liquidity levels over the years, with a notable decline in 2022. It would be important for the company to closely monitor its cash position and liquidity management to ensure it can meet its short-term obligations efficiently.