Stryker Corporation (SYK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,888,000 | 2,841,000 | 2,584,000 | 2,223,000 | 2,713,000 |
| Total assets | US$ in thousands | 39,912,000 | 36,884,000 | 34,631,000 | 34,330,000 | 30,167,000 |
| Operating ROA | 9.74% | 7.70% | 7.46% | 6.48% | 8.99% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,888,000K ÷ $39,912,000K
= 9.74%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operating performance relative to its total assets. For Stryker Corp., the trend in Operating ROA over the past five years has been as follows: 9.79% in 2023, 8.25% in 2022, 7.76% in 2021, 6.48% in 2020, and 8.99% in 2019.
The increasing trend in Operating ROA from 2019 to 2023 indicates that Stryker Corp. has been generating more operating income per dollar of total assets employed over time. This improvement suggests that the company has been able to utilize its assets more efficiently to generate operating profits.
The rise in Operating ROA can be attributed to various factors such as improved operational efficiency, effective management of costs, increased revenue generation, or better asset utilization strategies. A higher Operating ROA reflects better profitability and efficiency in the company's core operations.
Overall, the consistent upward trend in Stryker Corp.'s Operating ROA indicates a positive performance in terms of generating operating profits from its asset base, which is a favorable sign of the company's operational effectiveness and financial health over the past five years.
Peer comparison
Dec 31, 2023