Stryker Corporation (SYK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,971,000 | 39,912,000 | 36,884,000 | 34,631,000 | 34,330,000 |
| Total stockholders’ equity | US$ in thousands | 20,634,000 | 18,593,000 | 16,616,000 | 14,877,000 | 13,084,000 |
| Financial leverage ratio | 2.08 | 2.15 | 2.22 | 2.33 | 2.62 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,971,000K ÷ $20,634,000K
= 2.08
Based on the data provided, Stryker Corporation's financial leverage ratio has shown a decreasing trend over the years, indicating improved financial stability and reduced reliance on debt financing.
The financial leverage ratio decreased from 2.62 on December 31, 2020, to 2.08 on December 31, 2024. This downward trend suggests that the company has been reducing its debt levels relative to its equity, which can be a positive signal for investors as lower leverage typically implies lower financial risk.
Overall, the decreasing trend in Stryker Corporation's financial leverage ratio reflects a potentially stronger financial position and a more balanced capital structure, indicating a prudent approach to managing its debt levels.
Peer comparison
Dec 31, 2024