Stryker Corporation (SYK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,689,000 | 3,888,000 | 2,841,000 | 2,584,000 | 2,223,000 |
| Interest expense | US$ in thousands | 396,000 | 356,000 | 337,000 | 337,000 | 315,000 |
| Interest coverage | 9.32 | 10.92 | 8.43 | 7.67 | 7.06 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,689,000K ÷ $396,000K
= 9.32
The interest coverage ratio of Stryker Corporation has shown a positive trend over the years, indicating the company's ability to meet its interest obligations. The ratio has consistently improved from 7.06 in 2020 to 9.32 in 2024. This suggests that Stryker's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses, providing a buffer against financial risk. The steady increase in the interest coverage ratio reflects the company's solid financial health and sound management of its debt obligations. Overall, Stryker Corporation's interest coverage ratio demonstrates a strength in its ability to generate enough earnings to service its interest payments effectively.
Peer comparison
Dec 31, 2024