Stock Analysis on Net

Stryker Corp. (NYSE:SYK)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Stryker Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 12,918 12,778 9,069 8,563 7,168
Developed technologies 5,326 5,305 3,731 3,426 2,416
Customer relationships 2,324 2,352 2,160 2,155 2,088
Patents 343 346 348 332 340
Trademarks 415 428 362 349 352
In-process research and development 29 97 110 6 25
Other 105 128 125 128 93
Other intangible assets, gross carrying amount 8,542 8,656 6,836 6,396 5,314
Accumulated amortization (3,702) (3,102) (2,609) (2,233) (1,837)
Other intangible assets, net carrying amount 4,840 5,554 4,227 4,163 3,477
Goodwill and other intangible assets 17,758 18,332 13,296 12,726 10,645

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Stryker Corp. goodwill increased from 2019 to 2020 and from 2020 to 2021.
Other intangible assets, net carrying amount Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Stryker Corp. other intangible assets, net carrying amount increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Stryker Corp. goodwill and other intangible assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Adjustments to Financial Statements: Removal of Goodwill

Stryker Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 34,631 34,330 30,167 27,229 22,197
Less: Goodwill 12,918 12,778 9,069 8,563 7,168
Total assets (adjusted) 21,713 21,552 21,098 18,666 15,029
Adjustment to Total Stryker Shareholders’ Equity
Total Stryker shareholders’ equity (as reported) 14,877 13,084 12,807 11,730 9,966
Less: Goodwill 12,918 12,778 9,069 8,563 7,168
Total Stryker shareholders’ equity (adjusted) 1,959 306 3,738 3,167 2,798

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Stryker Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Stryker Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover
Reported total asset turnover 0.49 0.42 0.49 0.50 0.56
Adjusted total asset turnover 0.79 0.67 0.71 0.73 0.83
Financial Leverage
Reported financial leverage 2.33 2.62 2.36 2.32 2.23
Adjusted financial leverage 11.08 70.43 5.64 5.89 5.37
Return on Equity (ROE)
Reported ROE 13.40% 12.22% 16.26% 30.29% 10.23%
Adjusted ROE 101.79% 522.55% 55.72% 112.19% 36.45%
Return on Assets (ROA)
Reported ROA 5.76% 4.66% 6.90% 13.05% 4.60%
Adjusted ROA 9.18% 7.42% 9.87% 19.03% 6.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Stryker Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Stryker Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Stryker Corp. adjusted ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Stryker Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Stryker Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net sales 17,108 14,351 14,884 13,601 12,444
Total assets 34,631 34,330 30,167 27,229 22,197
Activity Ratio
Total asset turnover1 0.49 0.42 0.49 0.50 0.56
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 17,108 14,351 14,884 13,601 12,444
Adjusted total assets 21,713 21,552 21,098 18,666 15,029
Activity Ratio
Adjusted total asset turnover2 0.79 0.67 0.71 0.73 0.83

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 17,108 ÷ 34,631 = 0.49

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 17,108 ÷ 21,713 = 0.79

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Stryker Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 34,631 34,330 30,167 27,229 22,197
Total Stryker shareholders’ equity 14,877 13,084 12,807 11,730 9,966
Solvency Ratio
Financial leverage1 2.33 2.62 2.36 2.32 2.23
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 21,713 21,552 21,098 18,666 15,029
Adjusted total Stryker shareholders’ equity 1,959 306 3,738 3,167 2,798
Solvency Ratio
Adjusted financial leverage2 11.08 70.43 5.64 5.89 5.37

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Stryker shareholders’ equity
= 34,631 ÷ 14,877 = 2.33

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Stryker shareholders’ equity
= 21,713 ÷ 1,959 = 11.08

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Stryker Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net earnings 1,994 1,599 2,083 3,553 1,020
Total Stryker shareholders’ equity 14,877 13,084 12,807 11,730 9,966
Profitability Ratio
ROE1 13.40% 12.22% 16.26% 30.29% 10.23%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 1,994 1,599 2,083 3,553 1,020
Adjusted total Stryker shareholders’ equity 1,959 306 3,738 3,167 2,798
Profitability Ratio
Adjusted ROE2 101.79% 522.55% 55.72% 112.19% 36.45%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net earnings ÷ Total Stryker shareholders’ equity
= 100 × 1,994 ÷ 14,877 = 13.40%

2 Adjusted ROE = 100 × Net earnings ÷ Adjusted total Stryker shareholders’ equity
= 100 × 1,994 ÷ 1,959 = 101.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Stryker Corp. adjusted ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net earnings 1,994 1,599 2,083 3,553 1,020
Total assets 34,631 34,330 30,167 27,229 22,197
Profitability Ratio
ROA1 5.76% 4.66% 6.90% 13.05% 4.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 1,994 1,599 2,083 3,553 1,020
Adjusted total assets 21,713 21,552 21,098 18,666 15,029
Profitability Ratio
Adjusted ROA2 9.18% 7.42% 9.87% 19.03% 6.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,994 ÷ 34,631 = 5.76%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 1,994 ÷ 21,713 = 9.18%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Stryker Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.