Stock Analysis on Net
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 Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Stryker Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
United States federal 155 80 (17) 178 836
United States state and local 97 20 46 30 38
International 272 207 324 177 133
Current income tax expense 524 307 353 385 1,007
United States federal (82) 1 10 (44) 84
United States state and local (23) (25) (1) (20) (9)
International (132) 72 117 (1,518) (39)
Deferred income tax expense (benefit) (237) 48 126 (1,582) 36
Income tax expense (benefit) 287 355 479 (1,197) 1,043

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
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Stryker Corp. current income tax expense decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Stryker Corp. deferred income tax expense (benefit) decreased from 2019 to 2020 and from 2020 to 2021.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Stryker Corp. income tax expense (benefit) decreased from 2019 to 2020 and from 2020 to 2021.

Effective Income Tax Rate (EITR)

Stryker Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
United States federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
United States state and local income taxes, less federal deduction 2.70% 0.10% 1.70% 0.40% 1.20%
Foreign income tax at rates other than 21% -6.90% -3.30% -4.60% -6.50% -21.00%
Tax related to repatriation of foreign earnings 1.40% 3.00% -0.50% 0.50% 0.00%
Intellectual property transfer -2.30% -1.40% 3.50% -63.80% 0.00%
Other -3.30% -1.20% -2.40% -4.00% -4.90%
Effective income tax rate, before Tax Cuts and Jobs Act of 2017 12.60% 18.20% 18.70% -52.40% 10.30%
Tax Cuts and Jobs Act of 2017 transition tax 0.00% 0.00% 0.00% 2.20% 38.00%
Tax Cuts and Jobs Act of 2017 deferred tax changes 0.00% 0.00% 0.00% -0.60% 2.30%
Effective income tax rate 12.60% 18.20% 18.70% -50.80% 50.60%

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
Effective income tax rate, before Tax Cuts and Jobs Act of 2017 Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Stryker Corp. effective income tax rate, before Tax Cuts and Jobs Act of 2017 decreased from 2019 to 2020 and from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Stryker Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Inventories 513 434 415 390 480
Product-related liabilities 39 48 57 60 34
Other accrued expenses 501 512 221 222 204
Depreciation and amortization 1,194 1,269 1,363 1,504 —
State income taxes 128 108 65 70 46
Share-based compensation 63 56 49 47 46
Net operating loss and other credit carryforwards 232 470 95 134 52
Other 191 166 207 177 105
Deferred income tax assets 2,861 3,063 2,472 2,604 967
Valuation allowances (164) (203) (75) (66) (49)
Net deferred income tax assets 2,697 2,860 2,397 2,538 918
Depreciation and amortization (891) (1,286) (893) (865) (598)
Undistributed earnings (114) (161) (37) (46) (81)
Other — — — (3) (3)
Deferred income tax liabilities (1,005) (1,447) (930) (914) (682)
Net deferred income tax assets (liabilities) 1,692 1,413 1,467 1,624 236

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
Deferred income tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Stryker Corp. deferred income tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Net deferred income tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Stryker Corp. net deferred income tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Net deferred income tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Stryker Corp. net deferred income tax assets (liabilities) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Deferred Tax Assets and Liabilities, Classification

Stryker Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Noncurrent deferred income tax assets 1,760 1,530 1,575 1,678 283
Noncurrent deferred income tax liabilities (included in Other noncurrent liabilities) 68 117 108 54 47

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
Noncurrent deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Stryker Corp. noncurrent deferred income tax assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Noncurrent deferred income tax liabilities (included in Other noncurrent liabilities) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Stryker Corp. noncurrent deferred income tax liabilities (included in Other noncurrent liabilities) increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 1,760 1,530 1,575 1,678 283
Total assets (adjusted) 32,871 32,800 28,592 25,551 21,914
Adjustment to Total Liabilities
Total liabilities (as reported) 19,754 21,246 17,360 15,499 12,217
Less: Noncurrent deferred tax liabilities, net 68 117 108 54 47
Total liabilities (adjusted) 19,686 21,129 17,252 15,445 12,170
Adjustment to Total Stryker Shareholders’ Equity
Total Stryker shareholders’ equity (as reported) 14,877 13,084 12,807 11,730 9,966
Less: Net deferred tax assets (liabilities) 1,692 1,413 1,467 1,624 236
Total Stryker shareholders’ equity (adjusted) 13,185 11,671 11,340 10,106 9,730
Adjustment to Net Earnings
Net earnings (as reported) 1,994 1,599 2,083 3,553 1,020
Add: Deferred income tax expense (benefit) (237) 48 126 (1,582) 36
Net earnings (adjusted) 1,757 1,647 2,209 1,971 1,056

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 Deferred Taxes (Summary)

Stryker Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 11.66% 11.14% 13.99% 26.12% 8.20%
Adjusted net profit margin 10.27% 11.48% 14.84% 14.49% 8.49%
Total Asset Turnover
Reported total asset turnover 0.49 0.42 0.49 0.50 0.56
Adjusted total asset turnover 0.52 0.44 0.52 0.53 0.57
Financial Leverage
Reported financial leverage 2.33 2.62 2.36 2.32 2.23
Adjusted financial leverage 2.49 2.81 2.52 2.53 2.25
Return on Equity (ROE)
Reported ROE 13.40% 12.22% 16.26% 30.29% 10.23%
Adjusted ROE 13.33% 14.11% 19.48% 19.50% 10.85%
Return on Assets (ROA)
Reported ROA 5.76% 4.66% 6.90% 13.05% 4.60%
Adjusted ROA 5.35% 5.02% 7.73% 7.71% 4.82%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Stryker Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
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 not reaching 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 decreased significantly from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Stryker Corp. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Stryker Corp. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Stryker Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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
Net sales 17,108 14,351 14,884 13,601 12,444
Profitability Ratio
Net profit margin1 11.66% 11.14% 13.99% 26.12% 8.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 1,757 1,647 2,209 1,971 1,056
Net sales 17,108 14,351 14,884 13,601 12,444
Profitability Ratio
Adjusted net profit margin2 10.27% 11.48% 14.84% 14.49% 8.49%

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 Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 1,994 ÷ 17,108 = 11.66%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 1,757 ÷ 17,108 = 10.27%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Stryker Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 17,108 14,351 14,884 13,601 12,444
Adjusted total assets 32,871 32,800 28,592 25,551 21,914
Activity Ratio
Adjusted total asset turnover2 0.52 0.44 0.52 0.53 0.57

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 ÷ 32,871 = 0.52

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 not reaching 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 32,871 32,800 28,592 25,551 21,914
Adjusted total Stryker shareholders’ equity 13,185 11,671 11,340 10,106 9,730
Solvency Ratio
Adjusted financial leverage2 2.49 2.81 2.52 2.53 2.25

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
= 32,871 ÷ 13,185 = 2.49

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 decreased significantly from 2020 to 2021.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 1,757 1,647 2,209 1,971 1,056
Adjusted total Stryker shareholders’ equity 13,185 11,671 11,340 10,106 9,730
Profitability Ratio
Adjusted ROE2 13.33% 14.11% 19.48% 19.50% 10.85%

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 × Adjusted net earnings ÷ Adjusted total Stryker shareholders’ equity
= 100 × 1,757 ÷ 13,185 = 13.33%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Stryker Corp. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 1,757 1,647 2,209 1,971 1,056
Adjusted total assets 32,871 32,800 28,592 25,551 21,914
Profitability Ratio
Adjusted ROA2 5.35% 5.02% 7.73% 7.71% 4.82%

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 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 1,757 ÷ 32,871 = 5.35%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Stryker Corp. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.