Stryker Corporation (SYK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,165,000 | 2,358,000 | 1,994,000 | 1,599,000 | 2,083,000 |
| Total assets | US$ in thousands | 39,912,000 | 36,884,000 | 34,631,000 | 34,330,000 | 30,167,000 |
| ROA | 7.93% | 6.39% | 5.76% | 4.66% | 6.90% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,165,000K ÷ $39,912,000K
= 7.93%
Stryker Corp.'s return on assets (ROA) has shown an overall positive trend over the past five years. The company's ROA has increased from 6.90% in 2019 to 7.93% in 2023, indicating that Stryker Corp. has been able to generate a higher level of profit relative to its total assets. This improvement suggests that the company is becoming more efficient in utilizing its assets to generate earnings.
Furthermore, the steady increase in ROA from 2019 to 2023 demonstrates Stryker Corp.'s ability to enhance its operational efficiency and profitability over time. The company's ROA of 7.93% in 2023 reflects that for every dollar of assets, Stryker Corp. is generating a profit of approximately 7.93 cents, which is a positive sign for investors and stakeholders.
Overall, the upward trajectory of Stryker Corp.'s ROA indicates that the company has been effectively managing its assets to drive profitability and create value for its shareholders.
Peer comparison
Dec 31, 2023