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 
Quarterly Data

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

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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 financial data reveals several notable trends and variations in the company's profitability and expense structure over the analyzed quarters.

Gross Profit Margins
Gross profit consistently represents a significant portion of net sales, generally ranging between approximately 63.5% and 66.5%. There is a dip in gross profit margin in the second quarter of 2020, falling to about 56%, which marks an exceptional low point during the periods observed. Aside from this anomaly, gross profit demonstrates fairly stable performance with minor fluctuations.
Cost of Sales
Cost of sales as a percentage of net sales typically falls between 33% and 36%, with a notable increase to nearly 44% in the second quarter of 2020, coinciding with the decline in gross profit margin. This suggests elevated costs or pricing pressures during that quarter.
Research, Development, and Engineering Expenses
R&D expenses fluctuate mostly in the 6% to 7.5% range of net sales but spike to about 9.7% in the first quarter of 2022. This points to increased investment in innovation or product development in that quarter. The data also shows a noticeable increase in mid-2020, briefly rising to more than 8%.
Selling, General, and Administrative Expenses (SG&A)
SG&A constitutes a large expense category, generally between 33% and 40% of net sales. There are several periods with spikes above 40%, particularly in mid-2020 and early 2022. These elevated expenses may reflect higher administrative or selling costs during those periods.
Recall Charges
Recall charges are usually minimal but exhibit variability, with peaks of approximately 3.2% in the second quarter of 2019, and smaller spikes at various other points. This indicates occasional costs related to product recalls impacting specific quarters.
Amortization of Intangible Assets
This expense generally ranges from 2.5% to 4.5% of net sales, with the highest noted around the first quarter of 2021 at roughly 4.6%. The amortization costs are relatively stable but contribute consistently to operating expenses.
Operating Expenses and Operating Income
Operating expenses, which aggregate various costs, typically lie between 42% and 53% of net sales. There is a sharp rise in mid-2020 to around 57%, aligning with the spikes seen in costs of sales and SG&A. Despite this, operating income mostly remains positive, fluctuating between approximately 10% and 23%, showing resilience except for a notable negative result in the second quarter of 2020.
Other Income (Expense), Net
Other income and expenses are relatively small percentages but mostly negative, averaging between -0.2% and -2.4%. This suggests minor net costs incurred outside operating activities consistently reducing earnings.
Earnings Before Income Taxes
The earnings before taxes generally range from roughly 9% to 22% of net sales, reflecting profitability before tax impacts. A negative percentage is recorded in the second quarter of 2020, indicating an extraordinary impact during that time.
Income Taxes
Income taxes show high volatility, including atypical large positive and negative values, such as a substantial tax expense in the fourth quarter of 2017 and credits in mid-2018. This variability may be influenced by discrete tax events or adjustments.
Net Earnings
Net earnings mostly stay positive, typically between about 7.5% and 18% of net sales. However, the second quarter of 2020 reflects a net loss of 3%, coinciding with the adverse variances in operating margins and other expenses. Moreover, the fourth quarter of 2017 shows a negative net earnings figure, likely due to significant income tax changes during that period.

Overall, the company’s financial performance appears stable with strong gross margins and generally positive earnings. The second quarter of 2020 stands out as an exceptional period marked by increased costs, reduced gross profit, elevated operating expenses, and a net loss, likely influenced by extraordinary circumstances impacting operations and profitability. Apart from this anomaly, operating income and net earnings maintain a healthy range consistent with sustained operational efficiency and cost control efforts.