Stryker Corporation (SYK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,912,000 | 38,042,000 | 37,409,000 | 36,830,000 | 36,884,000 | 35,983,000 | 36,032,000 | 36,137,000 | 34,631,000 | 34,145,000 | 33,698,000 | 33,455,000 | 34,330,000 | 32,286,000 | 31,483,000 | 29,440,000 | 30,167,000 | 26,659,000 | 26,354,000 | 25,937,000 |
| 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 |
| Financial leverage ratio | 2.15 | 2.12 | 2.15 | 2.18 | 2.22 | 2.19 | 2.30 | 2.40 | 2.33 | 2.41 | 2.44 | 2.48 | 2.62 | 2.49 | 2.47 | 2.24 | 2.36 | 2.16 | 2.21 | 2.22 |
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 ranged between 2.12 and 2.40 over the past eight quarters. This ratio indicates that the company has been relying more on debt financing compared to equity to fund its operations and growth. A ratio above 1 suggests that the company has more debt in its capital structure than equity.
The trend in the financial leverage ratio shows a slight fluctuation over the quarters, with a peak of 2.40 in Q1 2022 and a low of 2.12 in Q3 2023. The decreasing trend from Q1 2022 to Q3 2023 suggests that the company may be reducing its reliance on debt to finance its operations. However, the ratio remains higher than 2, indicating that debt continues to play a significant role in the company's capital structure.
Investors and creditors may view a high financial leverage ratio as a risk factor, as it indicates a higher level of debt that the company needs to service. It also implies higher financial risk and potential instability in case of economic downturns or changes in interest rates. Overall, a careful assessment of the company's ability to manage its debt levels is crucial for stakeholders to evaluate its financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023