Stryker Corporation (SYK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 3,987,000 | 3,765,000 | 3,565,000 | 3,022,000 | 2,701,000 |
| Total current liabilities | US$ in thousands | 7,616,000 | 7,921,000 | 6,303,000 | 4,549,000 | 5,041,000 |
| Quick ratio | 1.11 | 0.86 | 0.87 | 1.33 | 1.14 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,652,000K
+ $841,000K
+ $3,987,000K)
÷ $7,616,000K
= 1.11
The quick ratio of Stryker Corporation has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 1.14, indicating that the company had $1.14 in liquid assets available to cover each dollar of current liabilities.
By December 31, 2021, the quick ratio improved to 1.33, suggesting a stronger liquidity position compared to the previous year. This indicates that the company had $1.33 in quick assets for every dollar of current liabilities, reflecting an improved ability to meet short-term obligations.
However, there was a decline in the quick ratio by December 31, 2022, which dropped to 0.87. This could signal potential liquidity challenges as the quick assets available may not be sufficient to cover current liabilities, potentially indicating a strain on the company's short-term financial health.
The trend continued into December 31, 2023, with a slight decrease in the quick ratio to 0.86, further highlighting the decreasing liquidity position of the company over this period.
Finally, by December 31, 2024, the quick ratio recovered to 1.11, showing an improvement in liquidity compared to the previous year but still below the ratios observed in 2020 and 2021.
Overall, the analysis of Stryker Corporation's quick ratio indicates some variability in the company's liquidity position over the five-year period, with fluctuations that may warrant further investigation into the company's short-term financial management and ability to meet its current obligations.
Peer comparison
Dec 31, 2024