Stryker Corp. (NYSE:SYK)

The analysis of the financial data reveals several notable trends in the composition of liabilities and shareholders’ equity over the five-year period under review.

Accounts Payable

The accounts payable increased from 2.19% in 2017 to 3.26% in 2021, indicating a gradual rise in short-term obligations relative to total liabilities and shareholders’ equity.

Accrued Compensation

Accrued compensation showed a declining trend between 2017 and 2020, dropping from 3.78% to 2.69%, before rebounding modestly to 3.15% in 2021. This suggests fluctuations in payroll-related liabilities.

Income Taxes (current liabilities)

Current income taxes remained relatively stable, fluctuating slightly around the 0.55% to 0.64% range, with a minor overall decreasing trend.

Dividend Payable

The dividend payable percentage exhibited slight variation, generally maintaining around 0.7%, with a minor increase to 0.76% in 2021.

Accrued Product Liabilities

This liability item was not reported until 2019; it increased from 1.1% in 2019 to 1.5% in 2020, then decreased to 1.16% in 2021, indicating emergence and slight reduction of these obligations in recent years.

Accrued Expenses and Other Liabilities

Initially stable around 5.44% to 5.59% in 2017–2018, this figure dropped sharply to 3.96% in 2019, partially recovering to 4.23% by 2021.

Current Maturities of Debt

This category showed significant volatility, peaking at 5.04% in 2018 but declining sharply thereafter to a minimal 0.02% in 2021, suggesting a reduction in short-term debt obligations.

Current Liabilities

Current liabilities as a whole declined from 15.7% in 2017 to 13.14% in 2021, after a peak of 17.65% in 2018, reflecting a downward movement in near-term financial obligations relative to the total capital structure.

Long-term Debt (excluding current maturities)

There was a clear upward trend in long-term debt from 29.69% in 2017 to a peak of 38.54% in 2020, followed by a slight decrease to 36.01% in 2021, indicating an increasing reliance on long-term financing, albeit with some recent reduction.

Income Taxes (non-current liabilities)

Non-current income taxes consistently decreased from 5.68% in 2017 to 2.64% in 2021, demonstrating a steady reduction in deferred or long-term tax liabilities.

Other Noncurrent Liabilities

This category rose from 3.59% in 2018 to 5.78% in 2020, slightly declining to 5.26% in 2021, showing overall growth in other long-term obligations.

Noncurrent Liabilities

The total noncurrent liabilities increased steadily from 39.34% in 2017 to 47.20% in 2020, decreasing thereafter to 43.91% in 2021, affirming a broad trend toward higher long-term debt and obligations before a mild reduction.

Total Liabilities

Total liabilities rose from 55.04% in 2017 to 61.89% in 2020, then decreased to 57.04% in 2021, indicating an overall increase in leverage with a recent partial deleveraging.

Common Stock

Common stock remained fairly stable, slightly declining from 0.17% in 2017 to 0.11% by 2021, reflecting minimal capital changes in this account relative to total financing.

Additional Paid-in Capital

This component decreased slightly from 6.74% in 2017 to 5.07% in 2020, followed by a minor recovery to 5.46% in 2021, indicating modest fluctuations in contributed capital.

Retained Earnings

Retained earnings decreased from 40.48% in 2017 to a low of 36.30% in 2020, before recovering to 38.92% in 2021, suggesting fluctuations in accumulated profits or dividend payouts affecting equity.

Accumulated Other Comprehensive Loss

This loss fluctuated throughout the period, improving from a negative 2.49% in 2017 to a less severe negative 1.53% in 2021, although with a more pronounced dip to negative 3.37% in 2020, indicating variability in other comprehensive income items.

Total Shareholders’ Equity

Shareholders’ equity consistently declined from 44.96% in 2017 to 38.11% in 2020 before rising again to 42.96% in 2021, reflecting shifting balance between liabilities and equity over the years.

Total Liabilities and Shareholders’ Equity

This figure remains constant at 100% each year, as it represents the total financing structure.

In summary, the data indicates an increase in total liabilities, particularly long-term debt, with a corresponding decrease in equity percentages up to 2020, followed by partial reversals in 2021. The company appears to have relied more on long-term borrowing during the middle years but began to reduce current liabilities and long-term debt slightly in the final year observed. Equity components show signs of recovery after prior declines. Overall, the financial structure exhibits fluctuations with a recent trend toward improving equity proportions relative to liabilities.