Stryker Corporation (SYK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,689,000 | 3,888,000 | 2,841,000 | 2,584,000 | 2,223,000 |
| Total assets | US$ in thousands | 42,971,000 | 39,912,000 | 36,884,000 | 34,631,000 | 34,330,000 |
| Operating ROA | 8.58% | 9.74% | 7.70% | 7.46% | 6.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,689,000K ÷ $42,971,000K
= 8.58%
The operating return on assets (operating ROA) for Stryker Corporation has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024.
Starting at 6.48% in 2020, the operating ROA increased steadily to 7.46% in 2021, further improving to 7.70% in 2022. The most significant leap was observed in 2023, where the operating ROA reached 9.74%, indicating a substantial improvement in the company's operational efficiency and profitability.
However, in 2024, the operating ROA decreased slightly to 8.58%, potentially indicating a minor dip in the company's ability to generate operating income from its assets compared to the previous year.
Overall, the gradual increase in the operating ROA suggests that Stryker Corporation has been effectively utilizing its assets to generate operating profits, with the notable peak in 2023 reflecting a particularly strong performance. Keeping a close eye on this ratio will be crucial to monitor the company's efficiency and profitability in the coming years.
Peer comparison
Dec 31, 2024