Return on Assets (ROA)
since 2005
Calculation
Stryker Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 5.76% | = | 100 | × | 1,994) | ÷ | 34,631) |
| Dec 31, 2020 | 4.66% | = | 100 | × | 1,599) | ÷ | 34,330) |
| Dec 31, 2019 | 6.90% | = | 100 | × | 2,083) | ÷ | 30,167) |
| Dec 31, 2018 | 13.05% | = | 100 | × | 3,553) | ÷ | 27,229) |
| Dec 31, 2017 | 4.60% | = | 100 | × | 1,020) | ÷ | 22,197) |
| Dec 31, 2016 | 8.06% | = | 100 | × | 1,647) | ÷ | 20,435) |
| Dec 31, 2015 | 8.86% | = | 100 | × | 1,439) | ÷ | 16,247) |
| Dec 31, 2014 | 2.91% | = | 100 | × | 515) | ÷ | 17,713) |
| Dec 31, 2013 | 6.39% | = | 100 | × | 1,006) | ÷ | 15,743) |
| Dec 31, 2012 | 9.83% | = | 100 | × | 1,298) | ÷ | 13,206) |
| Dec 31, 2011 | 10.84% | = | 100 | × | 1,345) | ÷ | 12,405) |
| Dec 31, 2010 | 11.69% | = | 100 | × | 1,273) | ÷ | 10,895) |
| Dec 31, 2009 | 12.21% | = | 100 | × | 1,107) | ÷ | 9,071) |
| Dec 31, 2008 | 15.10% | = | 100 | × | 1,148) | ÷ | 7,603) |
| Dec 31, 2007 | 13.83% | = | 100 | × | 1,017) | ÷ | 7,354) |
| Dec 31, 2006 | 13.24% | = | 100 | × | 778) | ÷ | 5,874) |
| Dec 31, 2005 | 13.66% | = | 100 | × | 675) | ÷ | 4,944) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The Return on Assets (ROA) for the period between 2005 and 2021 demonstrates a general long-term downward trajectory, characterized by significant volatility in the latter half of the sequence. While the asset base expanded substantially, net earnings did not scale at a proportional rate, leading to a general compression of asset efficiency over time.
- Asset Base Expansion and Efficiency
- Total assets grew consistently from 4,944 million USD in 2005 to 34,631 million USD by 2021. This substantial increase in the asset base created a higher threshold for maintaining ROA. Consequently, although net earnings generally trended upward over the long term, the rapid growth of the balance sheet contributed to the decline in the overall ROA percentage.
- Historical Performance Phases
- The data reveals three distinct phases. From 2005 to 2008, ROA remained strong and relatively stable, peaking at 15.10% in 2008. This was followed by a period of steady decline from 2009 to 2014, where the ratio dropped to its lowest point of 2.91%. The final phase, from 2015 to 2021, is marked by high volatility and a failure to return to the baseline efficiency levels observed in the mid-2000s.
- Earnings Volatility and Outliers
- Significant fluctuations in net earnings heavily influenced the ROA. A notable anomaly occurred in 2018, where net earnings spiked to 3,553 million USD, driving the ROA up to 13.05%. However, this peak was transient; by 2020 and 2021, the ROA returned to a lower range between 4.66% and 5.76%, suggesting that the 2018 performance was an outlier rather than a sustainable trend in asset productivity.
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Comparison to Competitors
Stryker Corp., ROA, long-term trends, comparison to competitors
| Stryker Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 5.76% | 9.40% | 6.26% | 12.58% | 3.87% | 8.15% |
| Dec 31, 2020 | 4.66% | 6.20% | 5.28% | 9.50% | 5.28% | 7.81% |
| Dec 31, 2019 | 6.90% | 5.43% | 6.21% | 14.17% | 5.16% | 7.96% |
| Dec 31, 2018 | 13.05% | 3.53% | 5.24% | 14.37% | 3.40% | 7.87% |
| Dec 31, 2017 | 4.60% | 0.63% | 5.45% | 11.46% | 4.04% | 7.59% |
| Dec 31, 2016 | 8.06% | 2.66% | 3.79% | 11.34% | 3.55% | 5.71% |
| Dec 31, 2015 | 8.86% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Dec 31, 2014 | 2.91% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Dec 31, 2013 | 6.39% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Dec 31, 2012 | 9.83% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Dec 31, 2011 | 10.84% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Dec 31, 2010 | 11.69% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Dec 31, 2009 | 12.21% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Dec 31, 2008 | 15.10% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Dec 31, 2007 | 13.83% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Dec 31, 2006 | 13.24% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Dec 31, 2005 | 13.66% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Stryker Corp., ROA, long-term trends, comparison to sector (health care equipment & services)
| Stryker Corp. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2021 | 5.76% | 7.28% |
| Dec 31, 2020 | 4.66% | 6.62% |
| Dec 31, 2019 | 6.90% | 6.77% |
| Dec 31, 2018 | 13.05% | 5.72% |
| Dec 31, 2017 | 4.60% | 5.00% |
| Dec 31, 2016 | 8.06% | 4.37% |
| Dec 31, 2015 | 8.86% | 4.93% |
| Dec 31, 2014 | 2.91% | 6.03% |
| Dec 31, 2013 | 6.39% | 6.64% |
| Dec 31, 2012 | 9.83% | 7.54% |
| Dec 31, 2011 | 10.84% | 7.54% |
| Dec 31, 2010 | 11.69% | 7.69% |
| Dec 31, 2009 | 12.21% | 8.84% |
| Dec 31, 2008 | 15.10% | 7.51% |
| Dec 31, 2007 | 13.83% | 8.92% |
| Dec 31, 2006 | 13.24% | 7.40% |
| Dec 31, 2005 | 13.66% | 7.94% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Stryker Corp., ROA, long-term trends, comparison to industry (health care)
| Stryker Corp. | Health Care | |
|---|---|---|
| Dec 31, 2021 | 5.76% | 9.46% |
| Dec 31, 2020 | 4.66% | 5.81% |
| Dec 31, 2019 | 6.90% | 8.32% |
| Dec 31, 2018 | 13.05% | 7.90% |
| Dec 31, 2017 | 4.60% | 5.19% |
| Dec 31, 2016 | 8.06% | 7.31% |
| Dec 31, 2015 | 8.86% | 7.71% |
| Dec 31, 2014 | 2.91% | 8.59% |
| Dec 31, 2013 | 6.39% | 8.76% |
| Dec 31, 2012 | 9.83% | 8.09% |
| Dec 31, 2011 | 10.84% | 7.36% |
| Dec 31, 2010 | 11.69% | 7.24% |
| Dec 31, 2009 | 12.21% | 9.73% |
| Dec 31, 2008 | 15.10% | 9.50% |
| Dec 31, 2007 | 13.83% | 8.88% |
| Dec 31, 2006 | 13.24% | 10.52% |
| Dec 31, 2005 | 13.66% | 9.67% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).