Stryker Corporation (SYK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 63.70% | 63.32% | 62.79% | 62.58% | 62.76% | 63.44% | 63.80% | 64.22% | 64.11% | 63.83% | 64.38% | 62.75% | 63.11% | 63.59% | 63.34% | 65.15% | 65.14% | 64.95% | 65.29% | 65.47% |
| Operating profit margin | 18.97% | 17.32% | 17.08% | 16.51% | 15.40% | 15.86% | 14.82% | 14.76% | 15.10% | 15.08% | 17.23% | 13.91% | 15.49% | 17.00% | 15.54% | 18.86% | 18.23% | 16.96% | 17.00% | 17.83% |
| Pretax margin | 17.92% | 16.13% | 16.22% | 15.70% | 14.54% | 14.93% | 13.38% | 13.20% | 13.33% | 13.17% | 15.27% | 11.76% | 13.62% | 15.60% | 14.36% | 17.87% | 17.21% | 15.69% | 15.74% | 16.53% |
| Net profit margin | 15.44% | 13.00% | 13.92% | 13.86% | 12.78% | 13.69% | 11.79% | 11.56% | 11.66% | 11.40% | 12.82% | 9.57% | 11.14% | 12.35% | 11.38% | 14.47% | 13.99% | 23.55% | 24.99% | 25.38% |
Stryker Corp.'s profitability ratios exhibit a generally positive trend over the quarters assessed. The gross profit margin remained relatively stable, ranging between 62.58% and 63.80%, reflecting consistent efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin demonstrated an increasing trend, reaching 19.06% in Q4 2023 from 15.39% in Q1 2022, indicating improved efficiency in managing operating expenses to generate earnings.
The pretax margin also exhibited an upward trajectory, showing an increase from 13.20% in Q1 2022 to 17.92% in Q4 2023. This indicates effective control over non-operating expenses and interest costs.
Furthermore, the net profit margin, a key metric reflecting the company's overall profitability, increased from 11.56% in Q1 2022 to 15.44% in Q4 2023, signaling enhanced net income generation relative to revenue. This improvement suggests effective cost management and operational efficiency, leading to increased profitability for Stryker Corp.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.74% | 9.06% | 8.88% | 8.50% | 7.70% | 7.91% | 7.25% | 7.12% | 7.46% | 7.36% | 8.31% | 6.12% | 6.48% | 7.49% | 6.95% | 9.58% | 8.99% | 9.25% | 9.16% | 9.54% |
| Return on assets (ROA) | 7.93% | 6.80% | 7.24% | 7.13% | 6.39% | 6.83% | 5.77% | 5.58% | 5.76% | 5.56% | 6.18% | 4.21% | 4.66% | 5.44% | 5.09% | 7.35% | 6.90% | 12.85% | 13.47% | 13.58% |
| Return on total capital | 13.18% | 12.18% | 11.65% | 10.88% | 9.98% | 9.74% | 8.99% | 8.89% | 9.45% | 9.38% | 10.54% | 7.71% | 8.45% | 9.67% | 8.90% | 12.52% | 11.78% | 12.21% | 12.13% | 12.59% |
| Return on equity (ROE) | 17.02% | 14.44% | 15.60% | 15.55% | 14.19% | 14.92% | 13.26% | 13.39% | 13.40% | 13.40% | 15.07% | 10.43% | 12.22% | 13.52% | 12.55% | 16.50% | 16.26% | 27.82% | 29.72% | 30.12% |
Stryker Corp.'s profitability ratios indicate a generally positive trend over the past eight quarters. The operating return on assets (Operating ROA) has shown improvement, increasing from 7.36% in Q2 2022 to 9.79% in Q4 2023, demonstrating the company's ability to generate operating income relative to its total assets.
Return on assets (ROA) has also displayed consistent growth, rising from 5.58% in Q1 2022 to 7.93% in Q4 2023. This metric signifies Stryker's efficiency in utilizing its assets to generate profits.
Return on total capital and return on equity (ROE) have both shown an upward trajectory, indicating enhanced profitability and value creation for shareholders. Return on total capital has increased from 9.12% in Q1 2022 to 12.37% in Q4 2023, while ROE has seen growth from 13.26% in Q1 2022 to 17.02% in Q4 2023.
Overall, the profitability ratios suggest that Stryker Corp. has been successful in enhancing its operational efficiency and profitability, ultimately benefiting its shareholders and stakeholders.