Stryker Corporation (SYK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.70% | 62.76% | 64.11% | 63.11% | 65.14% |
| Operating profit margin | 18.97% | 15.40% | 15.10% | 15.49% | 18.23% |
| Pretax margin | 17.92% | 14.54% | 13.33% | 13.62% | 17.21% |
| Net profit margin | 15.44% | 12.78% | 11.66% | 11.14% | 13.99% |
Stryker Corp. has shown stable and strong profitability over the last five years based on its profitability ratios. The gross profit margin has ranged between 62.76% to 65.14%, indicating consistent ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has shown an increasing trend from 15.49% in 2020 to 19.06% in 2023, signifying efficient management of operating expenses to generate profit from core business operations.
Similarly, the pretax margin has also exhibited a positive trend, increasing from 13.33% in 2021 to 17.92% in 2023, reflecting effective management of taxes and other expenses before tax calculation.
The net profit margin, a key indicator of overall profitability, has also shown improvement over the years, increasing from 11.14% in 2020 to 15.44% in 2023, highlighting the company's ability to generate profit after all expenses have been deducted.
Overall, these profitability ratios demonstrate Stryker Corp.'s ability to efficiently manage costs, operate profitably, and generate returns for its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.74% | 7.70% | 7.46% | 6.48% | 8.99% |
| Return on assets (ROA) | 7.93% | 6.39% | 5.76% | 4.66% | 6.90% |
| Return on total capital | 13.18% | 9.98% | 9.45% | 8.45% | 11.78% |
| Return on equity (ROE) | 17.02% | 14.19% | 13.40% | 12.22% | 16.26% |
Stryker Corp.'s profitability ratios have shown positive trends over the past five years.
1. Operating return on assets (Operating ROA): This ratio measures the company's operating income generated per dollar of assets. Stryker Corp.'s Operating ROA has been consistently increasing from 6.48% in 2020 to 9.79% in 2023. This indicates that the company has been able to generate more operating income from its assets over the years.
2. Return on assets (ROA): ROA shows the company's overall efficiency in generating profits from its assets. Stryker Corp.'s ROA has also demonstrated an upward trajectory, rising from 4.66% in 2020 to 7.93% in 2023. This suggests that the company has been more effective in utilizing its assets to generate profits.
3. Return on total capital: This ratio indicates the company's ability to generate returns for both equity and debt holders. Stryker Corp.'s Return on total capital has seen a steady increase over the years, reaching 12.37% in 2023. This improvement reflects the company's efficient use of both equity and debt capital to generate returns.
4. Return on equity (ROE): ROE measures the company's ability to generate profits from shareholders' equity. Stryker Corp.'s ROE has also shown a positive trend, increasing from 12.22% in 2020 to 17.02% in 2023. This signifies that the company has been able to deliver higher returns to its shareholders over the years.
Overall, Stryker Corp.'s profitability ratios demonstrate a consistent improvement in its ability to generate profits from its assets, capital, and equity, reflecting strong financial performance and efficiency in utilizing resources.