Stryker Corporation (SYK)

Debt-to-equity 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-equity ratio		0.59	0.58	0.64	0.70	0.71	0.77	0.85	0.92	0.84	0.89	0.92	0.97	1.01	0.92	0.93	0.72	0.80	0.64	0.67	0.68

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 been relatively stable over the past eight quarters, ranging from 0.70 to 0.94. This ratio indicates the proportion of debt financing used by the company relative to its equity. A lower ratio signifies less reliance on debt and a stronger financial position, while a higher ratio suggests higher debt levels and potential financial risks.

In the latest quarter, Q4 2023, the debt-to-equity ratio was 0.70, indicating that Stryker Corp. has a lower level of debt in relation to its equity. This implies a conservative financial structure with a greater emphasis on equity financing, which could potentially lower financial risks and improve the company's ability to weather economic downturns.

The overall trend of the debt-to-equity ratio for Stryker Corp. has shown a slight decrease from 0.94 in Q1 2022 to 0.70 in Q4 2023. This downward trend indicates a reduction in the company's reliance on debt over the past two years, which can be seen as a positive sign of improving financial health and stability.

However, it is essential to consider other factors such as the industry norms, the company's growth strategy, and its ability to generate sufficient cash flows to meet debt obligations. Monitoring changes in the debt-to-equity ratio over time can provide valuable insights into Stryker Corp.'s financial leverage and risk management practices.