Stryker Corporation (SYK)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,901,000 | 11,857,000 | 12,472,000 | 13,230,000 | 10,231,000 |
| Total stockholders’ equity | US$ in thousands | 18,593,000 | 16,616,000 | 14,877,000 | 13,084,000 | 12,807,000 |
| Debt-to-equity ratio | 0.59 | 0.71 | 0.84 | 1.01 | 0.80 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,901,000K ÷ $18,593,000K
= 0.59
The debt-to-equity ratio of Stryker Corp. has exhibited a decreasing trend over the past five years, indicating a relative decrease in the company's reliance on debt to finance its operations compared to equity. In 2023, the ratio stands at 0.70, showcasing a further improvement from the prior year's ratio of 0.79. This reduction in the ratio suggests that Stryker Corp. has been effectively managing its debt levels or increasing its equity position, which could enhance its financial health and stability. The company's leverage appears to have been more balanced in 2023, with a lower proportion of debt in comparison to shareholder equity, potentially making it less vulnerable to financial risks associated with high debt levels. Overall, the declining trend in the debt-to-equity ratio of Stryker Corp. reflects a positive financial position and prudent capital structure management.
Peer comparison
Dec 31, 2023