Stryker Corporation (SYK)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.37	0.37	0.39	0.41	0.42	0.44	0.46	0.48	0.46	0.47	0.48	0.49	0.50	0.48	0.48	0.42	0.44	0.39	0.40	0.40

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,901,000K ÷ ($10,901,000K + $18,593,000K)
= 0.37

The debt-to-capital ratio for Stryker Corp. has been relatively stable over the past eight quarters, ranging from 0.41 to 0.48. This ratio measures the proportion of the company's capital structure financed by debt compared to equity. A lower ratio indicates a lower reliance on debt for funding, which generally implies lower financial risk and leverage.

Stryker Corp.'s debt-to-capital ratio fluctuated between 0.41 and 0.48 during the period analyzed, showing some variability in the company's debt and equity mix. The slight increase in the ratio from Q1 2022 (0.44) to Q4 2022 (0.48) may suggest a higher level of debt relative to total capital, which could increase financial risk and interest expense for the company. However, the ratio subsequently decreased in Q1 and Q2 2023, indicating a potential shift towards a more balanced capital structure.

Overall, Stryker Corp.'s debt-to-capital ratio has remained within a relatively narrow range, signifying a moderate level of debt utilization compared to equity. Investors and analysts typically monitor this ratio to assess the company's financial leverage and evaluate its ability to meet debt obligations.