Stryker Corporation (SYK)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,689,000 | 4,365,000 | 4,211,000 | 4,125,000 | 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 |
| Long-term debt | US$ in thousands | 12,188,000 | 13,325,000 | 10,127,000 | 10,807,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 20,634,000 | 20,149,000 | 19,762,000 | 19,172,000 | 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 |
| Return on total capital | 11.24% | 13.04% | 14.09% | 13.76% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,689,000K ÷ ($12,188,000K + $20,634,000K)
= 11.24%
Stryker Corporation's return on total capital has fluctuated over the period analyzed. The ratio ranged from a low of 7.71% as of March 31, 2021, to a high of 14.09% as of June 30, 2024. The company's return on total capital showed a generally increasing trend from March 31, 2021, to March 31, 2024, with some fluctuations in between.
Overall, Stryker Corporation's return on total capital improved from 7.71% in March 31, 2021, to 13.76% in March 31, 2024. This indicates that the company was able to generate a higher return on the total capital employed in its operations over this period. However, it is worth noting that there was a slight decline in the ratio by the end of December 31, 2024, dropping to 11.24%.
The upward trend in return on total capital suggests that Stryker Corporation has been utilizing its capital more efficiently to generate returns for its stakeholders. The company's ability to maintain a double-digit return on total capital for most of the period indicates sound financial management and operational performance.
Peer comparison
Dec 31, 2024