Stryker Corporation (SYK)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,888,000	3,445,000	3,322,000	3,129,000	2,841,000	2,846,000	2,612,000	2,572,000	2,584,000	2,514,000	2,799,000	2,047,000	2,223,000	2,418,000	2,187,000	2,820,000	2,713,000	2,467,000	2,415,000	2,474,000
Long-term debt	US$ in thousands	10,901,000	10,382,000	11,149,000	11,857,000	11,857,000	12,751,000	13,374,000	13,885,000	12,472,000	12,629,000	12,734,000	13,059,000	13,230,000	12,008,000	11,811,000	9,404,000	10,231,000	7,889,000	7,974,000	7,950,000
Total stockholders’ equity	US$ in thousands	18,593,000	17,905,000	17,361,000	16,895,000	16,616,000	16,463,000	15,674,000	15,046,000	14,877,000	14,178,000	13,820,000	13,502,000	13,084,000	12,986,000	12,754,000	13,115,000	12,807,000	12,315,000	11,943,000	11,693,000
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,888,000K ÷ ($10,901,000K + $18,593,000K)
= 13.18%

Stryker Corp.'s return on total capital has shown a positive trend over the past eight quarters, reflecting improved efficiency and profitability in the company's capital utilization. The return on total capital has consistently increased from 9.21% in Q1 2022 to 12.37% in Q4 2023, indicating that the company is generating higher returns relative to the total capital employed in its operations.

This steady improvement suggests that Stryker Corp. has been effectively leveraging its capital resources to generate profits and create value for its shareholders. The increasing trend in return on total capital indicates that the company's management is making efficient use of its capital investments, leading to enhanced financial performance and sustainable growth prospects.

Overall, Stryker Corp.'s consistent improvement in return on total capital underscores its strong operational performance and strategic decision-making, positioning the company well for future success in the market.