Stryker Corporation (SYK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,912,000 | 36,884,000 | 34,631,000 | 34,330,000 | 30,167,000 |
| Total stockholders’ equity | US$ in thousands | 18,593,000 | 16,616,000 | 14,877,000 | 13,084,000 | 12,807,000 |
| Financial leverage ratio | 2.15 | 2.22 | 2.33 | 2.62 | 2.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $39,912,000K ÷ $18,593,000K
= 2.15
The financial leverage ratio of Stryker Corp. has shown a decreasing trend from 2.62 in 2020 to 2.15 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and growth over the years. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability for the company. Stryker Corp. has successfully managed its debt levels, which may be attributed to improved profitability, efficient financial management, or a strategic shift towards a more conservative capital structure. Overall, the decreasing trend in the financial leverage ratio indicates a positive financial position for Stryker Corp.
Peer comparison
Dec 31, 2023