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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
Quarterly Data

Stryker Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -36.05 -35.23 -36.49 -35.44 -36.53 -36.25 -34.15 -43.99 -35.03 -34.57 -35.04 -34.79 -35.07 -35.30 -33.53 -34.08 -34.06 -35.49 -34.07 -33.93 -33.60
Gross profit 63.95% 64.77% 63.51% 64.56% 63.47% 63.75% 65.85% 56.01% 64.97% 65.43% 64.96% 65.21% 64.93% 64.70% 66.47% 65.92% 65.94% 64.51% 65.93% 66.07% 66.40%
Research, development and engineering expenses -9.66 -7.04 -7.36 -7.22 -7.29 -5.98 -6.48 -8.43 -7.08 -6.15 -6.86 -6.74 -6.40 -5.82 -6.82 -6.50 -6.29 -5.91 -6.59 -6.37 -6.50
Selling, general and administrative expenses -40.00 -37.12 -38.51 -35.05 -39.84 -36.65 -33.29 -44.32 -37.07 -33.41 -35.99 -35.12 -39.90 -37.70 -38.31 -35.82 -38.14 -35.06 -36.69 -37.52 -37.29
Recall charges -0.33 -0.11 -0.38 -1.77 -0.15 -0.49 -0.05 0.00 0.17 -0.31 -1.37 -3.21 -0.37 -0.34 -0.12 -0.06 -0.12 -0.26 -2.20 -2.39 -0.88
Amortization of intangible assets -3.51 -3.08 -3.46 -3.47 -4.58 -3.05 -3.05 -3.98 -3.29 -2.71 -3.23 -3.34 -3.24 -2.45 -3.45 -3.31 -3.15 -2.77 -3.06 -3.15 -2.98
Operating expenses -53.50% -47.35% -49.71% -47.51% -51.86% -46.18% -42.87% -56.73% -47.27% -42.58% -47.45% -48.41% -49.91% -46.31% -48.70% -45.70% -47.70% -43.99% -48.54% -49.44% -47.65%
Operating income (loss) 10.46% 17.42% 13.80% 17.05% 11.61% 17.57% 22.99% -0.72% 17.70% 22.85% 17.51% 16.79% 15.02% 18.39% 17.77% 20.23% 18.24% 20.51% 17.40% 16.63% 18.75%
Other income (expense), net -1.43 -1.32 -1.90 -1.63 -2.33 -1.83 -2.11 -2.42 -1.25 -0.19 -1.31 -1.32 -1.37 -1.08 -1.30 -1.48 -1.51 -1.82 -1.73 -1.89 -1.86
Earnings (loss) before income taxes 9.03% 16.10% 11.90% 15.42% 9.28% 15.74% 20.87% -3.15% 16.44% 22.66% 16.20% 15.48% 13.65% 17.31% 16.47% 18.75% 16.72% 18.70% 15.67% 14.74% 16.89%
Income taxes -1.47 -2.02 -1.37 -1.63 -1.64 -2.42 -4.25 0.14 -2.70 -5.11 -3.21 -2.33 -1.93 37.17 1.73 -5.15 -3.05 -25.87 -1.23 -1.76 -1.86
Net earnings (loss) 7.56% 14.08% 10.53% 13.79% 7.64% 13.33% 16.62% -3.00% 13.74% 17.55% 12.99% 13.15% 11.72% 54.48% 18.20% 13.61% 13.67% -7.17% 14.44% 12.98% 15.03%

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The common-size income statement analysis from March 2017 through March 2022 reveals a period of relative operational stability characterized by consistent gross margins, punctuated by a significant disruption in the second quarter of 2020. While operating expenses have remained largely proportional to net sales, the net earnings margin exhibits high volatility primarily driven by irregular income tax adjustments.

Gross Profitability and Cost of Sales
Gross profit margins remained remarkably stable, generally fluctuating between 63% and 66% for the majority of the analyzed period. A significant anomaly occurred on June 30, 2020, where gross profit dropped to 56.01% as the cost of sales spiked to 43.99%. Following this event, the margin recovered to previous levels, although a slight downward trend is observable toward the end of the period, ending at 63.95% in March 2022.
Operating Expense Trends
Selling, general, and administrative (SG&A) expenses represent the largest component of operating costs, typically ranging between 33% and 40% of net sales. Similar to the gross margin, SG&A peaked sharply at 44.32% in June 2020. Research, development, and engineering expenses showed a steady baseline of 6% to 7% until a notable increase to 9.66% was recorded in March 2022, suggesting an intensified investment in innovation.
Operating Income Performance
Operating income generally maintained a range between 13% and 23% of net sales. The operational peak occurred in June 2020 and December 2019, though the June 2020 period also recorded a stark deviation, resulting in an operating loss of -0.72%. Recent data indicates a contraction in operating efficiency, with the margin declining to 10.46% by March 2022, coinciding with the rise in R&D and SG&A expenses.
Recall Charges and Amortization
Recall charges have exerted intermittent pressure on margins, with significant spikes observed in June 2019 (-3.21%) and June 2021 (-1.77%). Amortization of intangible assets remained relatively constant, typically accounting for 2.5% to 3.5% of net sales, with a brief increase to 4.58% in March 2021.
Net Earnings and Tax Volatility
Net earnings demonstrate extreme variance that does not always correlate with operating performance. This is most evident in the December quarters of 2017 and 2018, where net earnings were -7.17% and 54.48%, respectively, driven by massive swings in income taxes (-25.87% and 37.17%). Despite the volatility in net results, the underlying trend for net earnings in more typical quarters has settled between 7% and 17% of net sales.

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