Stryker Corporation (SYK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 18,593,000 | 16,616,000 | 14,877,000 | 13,084,000 | 12,807,000 |
| ROE | 17.02% | 14.19% | 13.40% | 12.22% | 16.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,165,000K ÷ $18,593,000K
= 17.02%
Stryker Corp.'s return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 16.26% in 2019 to 17.02% in 2023, indicating an improvement in the company's ability to generate profits from its shareholders' equity. This upward trajectory suggests that Stryker has been effectively utilizing its shareholders' investments to generate earnings.
The consistent growth in ROE signifies that the company is maintaining or increasing its profitability relative to the equity invested by shareholders. This could be attributed to effective cost management, operational efficiency, successful revenue generation, or strategic investment decisions.
Stryker's ROE outperforming the industry average indicates that the company is creating more value for shareholders compared to its peers. The overall positive trend in ROE reflects positively on Stryker's financial performance and management's ability to deliver returns to its investors.
Peer comparison
Dec 31, 2023