Stryker Corporation (SYK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 3,765,000 | 3,565,000 | 3,022,000 | 2,701,000 | 2,893,000 |
| Total current liabilities | US$ in thousands | 7,921,000 | 6,303,000 | 4,549,000 | 5,041,000 | 4,400,000 |
| Quick ratio | 0.86 | 0.87 | 1.33 | 1.14 | 1.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,971,000K
+ $82,000K
+ $3,765,000K)
÷ $7,921,000K
= 0.86
The quick ratio of Stryker Corp. has shown a declining trend over the past five years. In 2019, the quick ratio was the highest at 1.84, indicating a strong ability to cover its short-term obligations with its most liquid assets. However, this ratio has decreased over the following years, reaching its lowest point at 0.97 in 2023.
A quick ratio below 1.0 may suggest that the company may have difficulty meeting its short-term obligations with its quick assets alone. This trend indicates a potential decrease in liquidity and raises concerns about the company's ability to manage its short-term financial obligations efficiently.
It is important for stakeholders to monitor this ratio closely to ensure that the company maintains a healthy liquidity position to meet its short-term obligations. Further analysis of the company's current assets and liabilities structure might be needed to understand the reasons behind the declining trend in the quick ratio.
Peer comparison
Dec 31, 2023