Return on Equity (ROE)
since 2005
Calculation
Stryker Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Total Stryker shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 13.40% | = | 100 | × | 1,994) | ÷ | 14,877) |
| Dec 31, 2020 | 12.22% | = | 100 | × | 1,599) | ÷ | 13,084) |
| Dec 31, 2019 | 16.26% | = | 100 | × | 2,083) | ÷ | 12,807) |
| Dec 31, 2018 | 30.29% | = | 100 | × | 3,553) | ÷ | 11,730) |
| Dec 31, 2017 | 10.23% | = | 100 | × | 1,020) | ÷ | 9,966) |
| Dec 31, 2016 | 17.25% | = | 100 | × | 1,647) | ÷ | 9,550) |
| Dec 31, 2015 | 16.91% | = | 100 | × | 1,439) | ÷ | 8,511) |
| Dec 31, 2014 | 5.99% | = | 100 | × | 515) | ÷ | 8,595) |
| Dec 31, 2013 | 11.12% | = | 100 | × | 1,006) | ÷ | 9,047) |
| Dec 31, 2012 | 15.10% | = | 100 | × | 1,298) | ÷ | 8,597) |
| Dec 31, 2011 | 17.51% | = | 100 | × | 1,345) | ÷ | 7,683) |
| Dec 31, 2010 | 17.75% | = | 100 | × | 1,273) | ÷ | 7,174) |
| Dec 31, 2009 | 16.79% | = | 100 | × | 1,107) | ÷ | 6,595) |
| Dec 31, 2008 | 21.23% | = | 100 | × | 1,148) | ÷ | 5,407) |
| Dec 31, 2007 | 18.92% | = | 100 | × | 1,017) | ÷ | 5,379) |
| Dec 31, 2006 | 18.56% | = | 100 | × | 778) | ÷ | 4,191) |
| Dec 31, 2005 | 20.76% | = | 100 | × | 675) | ÷ | 3,252) |
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 analysis of financial performance from 2005 to 2021 reveals a volatile trend in Return on Equity (ROE), characterized by periods of relative stability, significant troughs, and a notable peak in 2018.
- Return on Equity (ROE) Trends
- ROE remained relatively stable, fluctuating between 15% and 21%, from 2005 through 2012. A significant decline occurred between 2013 and 2014, with ROE reaching a period low of 5.99%. Although a recovery followed in 2015 and 2016, a subsequent dip occurred in 2017. The most prominent anomaly is observed in 2018, where ROE surged to 30.29%, the highest point in the analyzed period. From 2019 to 2021, the ratio normalized, stabilizing between 12.22% and 13.40%.
- Net Earnings Volatility
- Net earnings exhibited substantial fluctuations that directly impacted the ROE. While earnings generally trended upward from 675 million USD in 2005 to 1,994 million USD in 2021, specific anomalies are evident. The decline in ROE in 2014 corresponds with a sharp drop in net earnings to 515 million USD. Conversely, the 2018 ROE peak was driven by a surge in net earnings to 3,553 million USD, a figure significantly higher than the earnings of any other year in the period.
- Shareholders' Equity Expansion
- Total shareholders' equity demonstrated a consistent and steady upward trajectory, growing from 3,252 million USD in 2005 to 14,877 million USD in 2021. This continuous expansion of the equity base creates a higher threshold for maintaining high ROE levels, as net earnings must increase proportionally to the growing capital base to prevent ratio compression.
- Comparative Correlation
- The relationship between earnings growth and equity accumulation indicates that the general downward shift in ROE—from the 18-20% range in the mid-2000s to the 12-13% range by 2021—is partly attributable to the significantly larger equity base. Because equity grew linearly while earnings moved cyclically, the ROE volatility is primarily a reflection of net earnings variance.
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Comparison to Competitors
Stryker Corp., ROE, long-term trends, comparison to competitors
| Stryker Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 13.40% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 12.22% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 16.26% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 30.29% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 10.23% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 17.25% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 16.91% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 5.99% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 11.12% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 15.10% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 17.51% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 17.75% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 16.79% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 21.23% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 18.92% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 18.56% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 20.76% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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., ROE, long-term trends, comparison to sector (health care equipment & services)
| Stryker Corp. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2021 | 13.40% | 17.28% |
| Dec 31, 2020 | 12.22% | 15.80% |
| Dec 31, 2019 | 16.26% | 15.85% |
| Dec 31, 2018 | 30.29% | 13.28% |
| Dec 31, 2017 | 10.23% | 12.21% |
| Dec 31, 2016 | 17.25% | 10.70% |
| Dec 31, 2015 | 16.91% | 11.84% |
| Dec 31, 2014 | 5.99% | 13.81% |
| Dec 31, 2013 | 11.12% | 14.22% |
| Dec 31, 2012 | 15.10% | 17.99% |
| Dec 31, 2011 | 17.51% | 17.02% |
| Dec 31, 2010 | 17.75% | 17.62% |
| Dec 31, 2009 | 16.79% | 19.50% |
| Dec 31, 2008 | 21.23% | 17.63% |
| Dec 31, 2007 | 18.92% | 20.02% |
| Dec 31, 2006 | 18.56% | 16.70% |
| Dec 31, 2005 | 20.76% | 16.22% |
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., ROE, long-term trends, comparison to industry (health care)
| Stryker Corp. | Health Care | |
|---|---|---|
| Dec 31, 2021 | 13.40% | 25.44% |
| Dec 31, 2020 | 12.22% | 16.70% |
| Dec 31, 2019 | 16.26% | 23.30% |
| Dec 31, 2018 | 30.29% | 21.27% |
| Dec 31, 2017 | 10.23% | 13.77% |
| Dec 31, 2016 | 17.25% | 18.53% |
| Dec 31, 2015 | 16.91% | 18.52% |
| Dec 31, 2014 | 5.99% | 19.17% |
| Dec 31, 2013 | 11.12% | 18.81% |
| Dec 31, 2012 | 15.10% | 18.20% |
| Dec 31, 2011 | 17.51% | 15.90% |
| Dec 31, 2010 | 17.75% | 14.85% |
| Dec 31, 2009 | 16.79% | 20.14% |
| Dec 31, 2008 | 21.23% | 20.29% |
| Dec 31, 2007 | 18.92% | 17.87% |
| Dec 31, 2006 | 18.56% | 20.49% |
| Dec 31, 2005 | 20.76% | 18.28% |
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).