Stryker Corporation (SYK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.27 | 0.32 | 0.36 | 0.39 |
| Debt-to-capital ratio | 0.37 | 0.37 | 0.42 | 0.46 | 0.50 |
| Debt-to-equity ratio | 0.59 | 0.59 | 0.71 | 0.84 | 1.01 |
| Financial leverage ratio | 2.08 | 2.15 | 2.22 | 2.33 | 2.62 |
Stryker Corporation's solvency ratios indicate a favorable trend over the years. The Debt-to-assets ratio has decreased from 0.39 in 2020 to 0.28 in 2024, showing that the company has reduced its dependence on debt to finance its assets. Similarly, the Debt-to-capital and Debt-to-equity ratios have demonstrated a declining pattern from 2020 to 2024, indicating improved financial health and lower leverage levels. Furthermore, the Financial leverage ratio has consistently decreased from 2.62 in 2020 to 2.08 in 2024, signifying a lower reliance on debt financing to generate returns for shareholders. Overall, the decreasing trend in these solvency ratios suggests that Stryker Corporation has been effectively managing its debt levels and enhancing its financial stability over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.32 | 10.92 | 8.43 | 7.67 | 7.06 |
The interest coverage ratio for Stryker Corporation has shown a consistent improvement over the years from 2020 to 2024. The ratio has steadily increased from 7.06 in December 2020 to 9.32 in December 2024. This indicates that the company's ability to cover its interest expenses with its operating income has strengthened over the years, reflecting greater financial stability and a reduced risk of default. The gradual increase in the interest coverage ratio suggests that Stryker Corporation has been effectively managing its debt obligations and generating sufficient operating income to comfortably meet its interest payments.