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.

Common-Size Income Statement

Stryker Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -35.89 -36.89 -34.86 -34.28 -34.32
Gross profit 64.11% 63.11% 65.14% 65.72% 65.68%
Research, development and engineering expenses -7.22 -6.86 -6.52 -6.34 -6.32
Selling, general and administrative expenses -37.57 -37.36 -35.98 -37.49 -36.58
Recall charges -0.60 -0.12 -1.29 -0.17 -1.39
Amortization of intangible assets -3.62 -3.29 -3.12 -3.07 -2.98
Operating expenses -49.01% -47.62% -46.92% -47.06% -47.28%
Operating income 15.10% 15.49% 18.23% 18.65% 18.40%
Interest expense -1.97 -2.19 -1.93 -1.94 -1.98
Other income (expense), net 0.20 0.32 0.91 0.61 0.16
Earnings before income taxes 13.33% 13.62% 17.21% 17.32% 16.58%
Income taxes -1.68 -2.47 -3.22 8.80 -8.38
Net earnings 11.66% 11.14% 13.99% 26.12% 8.20%

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).

The common-size income statement analysis from 2017 to 2021 reveals a period of relative stability in gross profitability contrasted by a gradual compression of operating margins and significant volatility in net earnings.

Gross Profitability
Gross profit margins remained consistently strong, fluctuating within a narrow range between 63.11% and 65.72%. A slight dip in margin was observed in 2020, coinciding with the highest cost of sales at 36.89%, before recovering to 64.11% in 2021.
Operating Expense Structure
Total operating expenses exhibited a steady increase, rising from 47.28% of net sales in 2017 to 49.01% in 2021. This growth was primarily driven by a consistent upward trend in research, development, and engineering expenses, which climbed from 6.32% to 7.22%. Additionally, amortization of intangible assets rose gradually from 2.98% to 3.62%. Selling, general, and administrative expenses remained largely stable, hovering between 35.98% and 37.57%.
Operating Income Margin
A downward trend in operating income is evident, moving from 18.40% in 2017 to 15.10% in 2021. The peak operating margin of 18.65% in 2018 was followed by a notable decline starting in 2020, reflecting the impact of rising operating costs on overall operational efficiency.
Net Earnings and Tax Effects
Net earnings percentages showed high volatility, most notably in 2018 where earnings spiked to 26.12% of net sales. This anomaly is attributed to a positive income tax entry of 8.80%, suggesting a significant tax benefit in that period. From 2019 to 2021, net earnings stabilized at a lower level, ranging from 11.14% to 13.99%, reflecting the underlying compression of operating income.

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