Stryker Corporation (SYK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.91% | 63.70% | 62.76% | 64.11% | 63.11% |
| Operating profit margin | 16.33% | 18.97% | 15.40% | 15.10% | 15.49% |
| Pretax margin | 15.45% | 17.92% | 14.54% | 13.33% | 13.62% |
| Net profit margin | 13.25% | 15.44% | 12.78% | 11.66% | 11.14% |
Stryker Corporation's profitability ratios indicate a generally positive trend over the years. The gross profit margin has shown a steady improvement from 63.11% in 2020 to 63.91% in 2024, reflecting the company's ability to effectively manage its production and cost of goods sold.
Similarly, the operating profit margin has remained relatively stable, with a slight dip in 2021 but a subsequent increase to 16.33% in 2024. This suggests that Stryker has been efficient in controlling its operating expenses and generating operating profits.
The pretax margin has shown a significant improvement over the period, rising from 13.62% in 2020 to 15.45% in 2024. This indicates that the company's pre-tax earnings as a percentage of its total revenue have been on an upward trajectory, which is a positive sign of increased profitability.
The net profit margin, which reflects the company's bottom-line profitability after all expenses have been accounted for, has also displayed a positive trend. Starting at 11.14% in 2020 and reaching 13.25% in 2024, this ratio indicates the company's ability to generate net income efficiently and manage its costs effectively.
Overall, Stryker Corporation's profitability ratios paint a picture of a company that has been able to consistently improve its profitability over the years through effective cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.58% | 9.74% | 7.70% | 7.46% | 6.48% |
| Return on assets (ROA) | 6.97% | 7.93% | 6.39% | 5.76% | 4.66% |
| Return on total capital | 11.24% | 13.18% | 9.98% | 9.45% | 8.45% |
| Return on equity (ROE) | 14.51% | 17.02% | 14.19% | 13.40% | 12.22% |
Stryker Corporation's profitability ratios have shown a generally positive trend over the years based on the provided data.
1. Operating Return on Assets (Operating ROA):
- Stryker's Operating ROA has improved steadily from 6.48% in 2020 to 8.58% in 2024. This indicates that the company has been able to generate increasing operating profits relative to its total assets.
2. Return on Assets (ROA):
- The ROA has also exhibited an upward trajectory, rising from 4.66% in 2020 to 6.97% in 2024. This signifies an enhancement in the company's ability to generate profit from its assets.
3. Return on Total Capital:
- Stryker's Return on Total Capital has displayed growth, escalating from 8.45% in 2020 to 11.24% in 2024. This metric highlights the company's efficiency in generating returns from both equity and debt investments.
4. Return on Equity (ROE):
- The Return on Equity has demonstrated a positive trend, increasing from 12.22% in 2020 to 14.51% in 2024. This indicates an improvement in the company's ability to generate profits for its shareholders based on their equity investments.
Overall, the profitability ratios of Stryker Corporation reflect a favorable performance, showcasing consistent growth in its ability to generate profits in relation to its assets, capital, and equity over the specified period.