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.

Financial Reporting Quality: Aggregate Accruals

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Stryker Corp., balance sheet computation of aggregate accruals

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Operating Assets
Total assets 34,631 34,330 30,167 27,229 22,197
Less: Cash and cash equivalents 2,944 2,943 4,337 3,616 2,542
Less: Marketable securities 75 81 88 83 251
Operating assets 31,612 31,306 25,742 23,530 19,404
Operating Liabilities
Total liabilities 19,754 21,246 17,360 15,499 12,217
Less: Current maturities of debt 7 761 859 1,373 632
Less: Long-term debt, excluding current maturities 12,472 13,230 10,231 8,486 6,590
Operating liabilities 7,275 7,255 6,270 5,640 4,995
 
Net operating assets1 24,337 24,051 19,472 17,890 14,409
Balance-sheet-based aggregate accruals2 286 4,579 1,582 3,481
Financial Ratio
Balance-sheet-based accruals ratio3 1.18% 21.04% 8.47% 21.55%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.76% -1.55%
Cigna Group 4.17% -7.30%
CVS Health Corp. -3.68% -0.89%
Danaher Corp. 16.41% 52.50%
Elevance Health Inc. 14.93% -15.16%
Humana Inc. 111.97% 18.14%
Intuitive Surgical Inc. 50.02% -8.55%
Medtronic PLC 3.72% -1.48% 0.51%
UnitedHealth Group Inc. 4.32% 5.27%
Balance-Sheet-Based Accruals Ratio, Sector
Health Care Equipment & Services 5.99% 3.33% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 5.50% 10.57% 200.00%

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).

1 2021 Calculation
Net operating assets = Operating assets – Operating liabilities
= 31,6127,275 = 24,337

2 2021 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2021 – Net operating assets2020
= 24,33724,051 = 286

3 2021 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 286 ÷ [(24,337 + 24,051) ÷ 2] = 1.18%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Stryker Corp. improved earnings quality from 2020 to 2021.

Cash-Flow-Statement-Based Accruals Ratio

Stryker Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings 1,994 1,599 2,083 3,553 1,020
Less: Net cash provided by operating activities 3,263 3,277 2,191 2,610 1,559
Less: Net cash used in investing activities (859) (4,701) (1,455) (2,857) (1,613)
Cash-flow-statement-based aggregate accruals (410) 3,023 1,347 3,800 1,074
Financial Ratio
Cash-flow-statement-based accruals ratio1 -1.69% 13.89% 7.21% 23.53%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -3.29% -2.65%
Cigna Group 2.43% -6.53%
CVS Health Corp. -4.20% -2.54%
Danaher Corp. 18.48% 42.90%
Elevance Health Inc. 30.34% 4.96%
Humana Inc. 91.38% 24.85%
Intuitive Surgical Inc. 33.51% 10.64%
Medtronic PLC 0.35% 1.16% -2.45%
UnitedHealth Group Inc. 5.77% 6.56%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Health Care Equipment & Services 5.76% 3.91% 0.43%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 6.44% 6.57% 3.54%

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).

1 2021 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -410 ÷ [(24,337 + 24,051) ÷ 2] = -1.69%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Stryker Corp. improved earnings quality from 2020 to 2021.