Stryker Corp., adjustment to net earnings

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net earnings (as reported)	1,994)	1,599)	2,083)	3,553)	1,020)
Add: Marketable securities	3)	—)	1)	—)	(4)
Net earnings (adjusted)	1,997)	1,599)	2,084)	3,553)	1,016)

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Stryker Corp., adjusted profitability ratios

	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	11.67%	11.14%	14.00%	26.12%	8.16%
Return on Equity (ROE)
Reported ROE	13.40%	12.22%	16.26%	30.29%	10.23%
Adjusted ROE	13.42%	12.22%	16.27%	30.29%	10.19%
Return on Assets (ROA)
Reported ROA	5.76%	4.66%	6.90%	13.05%	4.60%
Adjusted ROA	5.77%	4.66%	6.91%	13.05%	4.58%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Stryker Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Stryker Corp. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Stryker Corp. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

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	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	1,997)	1,599)	2,084)	3,553)	1,016)
Net sales	17,108)	14,351)	14,884)	13,601)	12,444)
Profitability Ratio
Adjusted net profit margin²	11.67%	11.14%	14.00%	26.12%	8.16%

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 × 1,997 ÷ 17,108 = 11.67%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	1,997)	1,599)	2,084)	3,553)	1,016)
Total Stryker shareholders’ equity	14,877)	13,084)	12,807)	11,730)	9,966)
Profitability Ratio
Adjusted ROE²	13.42%	12.22%	16.27%	30.29%	10.19%

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 ÷ Total Stryker shareholders’ equity
= 100 × 1,997 ÷ 14,877 = 13.42%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	1,997)	1,599)	2,084)	3,553)	1,016)
Total assets	34,631)	34,330)	30,167)	27,229)	22,197)
Profitability Ratio
Adjusted ROA²	5.77%	4.66%	6.91%	13.05%	4.58%

2021 Calculations

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

² Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 1,997 ÷ 34,631 = 5.77%

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

Stryker Corp. (NYSE:SYK)

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