Microsoft Excel LibreOffice Calc

Stryker Corp. (NYSE:SYK)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Stryker Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.49 0.50 0.56 0.55 0.61
Adjusted 0.52 0.52 0.56 0.55 0.62
Liquidity Ratio
Current Ratio
Reported 2.58 2.02 2.29 2.50 2.27
Adjusted 2.60 2.04 2.31 2.51 2.29
Solvency Ratios
Debt to Equity
Reported 0.87 0.84 0.72 0.72 0.47
Adjusted 1.00 1.00 0.77 0.76 0.52
Debt to Capital
Reported 0.46 0.46 0.42 0.42 0.32
Adjusted 0.50 0.50 0.43 0.43 0.34
Financial Leverage
Reported 2.36 2.32 2.23 2.14 1.91
Adjusted 2.51 2.55 2.27 2.18 1.98
Profitability Ratios
Net Profit Margin
Reported 13.99% 26.12% 8.20% 14.54% 14.47%
Adjusted 15.17% 13.95% 10.18% 13.01% 11.49%
Return on Equity (ROE)
Reported 16.26% 30.29% 10.23% 17.25% 16.91%
Adjusted 19.76% 18.66% 12.92% 15.74% 14.06%
Return on Assets (ROA)
Reported 6.90% 13.05% 4.60% 8.06% 8.86%
Adjusted 7.87% 7.32% 5.69% 7.21% 7.11%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Stryker Corp.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Stryker Corp.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Stryker Corp.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Stryker Corp.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Stryker Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Stryker Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Stryker Corp.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Stryker Corp.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Stryker Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 14,884  13,601  12,444  11,325  9,946 
Total assets 30,167  27,229  22,197  20,435  16,247 
Activity Ratio
Total asset turnover1 0.49 0.50 0.56 0.55 0.61
Adjusted
Selected Financial Data (US$ in millions)
Net sales 14,884  13,601  12,444  11,325  9,946 
Adjusted total assets2 28,680  25,923  22,269  20,430  16,069 
Activity Ratio
Adjusted total asset turnover3 0.52 0.52 0.56 0.55 0.62

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 14,884 ÷ 30,167 = 0.49

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 14,884 ÷ 28,680 = 0.52

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Stryker Corp.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 11,360  9,733  7,993  7,861  7,944 
Current liabilities 4,400  4,807  3,485  3,148  3,503 
Liquidity Ratio
Current ratio1 2.58 2.02 2.29 2.50 2.27
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 11,448  9,797  8,052  7,916  8,005 
Current liabilities 4,400  4,807  3,485  3,148  3,503 
Liquidity Ratio
Adjusted current ratio3 2.60 2.04 2.31 2.51 2.29

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,360 ÷ 4,400 = 2.58

2 Adjusted current assets. See details »

3 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 11,448 ÷ 4,400 = 2.60

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Stryker Corp.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 11,090  9,859  7,222  6,914  4,022 
Total Stryker shareholders’ equity 12,807  11,730  9,966  9,550  8,511 
Solvency Ratio
Debt to equity1 0.87 0.84 0.72 0.72 0.47
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,477  10,167  7,518  7,156  4,260 
Adjusted total shareholders’ equity3 11,428  10,170  9,803  9,358  8,130 
Solvency Ratio
Adjusted debt to equity4 1.00 1.00 0.77 0.76 0.52

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Stryker shareholders’ equity
= 11,090 ÷ 12,807 = 0.87

2 Adjusted total debt. See details »

3 Adjusted total shareholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareholders’ equity
= 11,477 ÷ 11,428 = 1.00

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Stryker Corp.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 11,090  9,859  7,222  6,914  4,022 
Total capital 23,897  21,589  17,188  16,464  12,533 
Solvency Ratio
Debt to capital1 0.46 0.46 0.42 0.42 0.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,477  10,167  7,518  7,156  4,260 
Adjusted total capital3 22,905  20,337  17,321  16,514  12,390 
Solvency Ratio
Adjusted debt to capital4 0.50 0.50 0.43 0.43 0.34

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,090 ÷ 23,897 = 0.46

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 11,477 ÷ 22,905 = 0.50

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Stryker Corp.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 30,167  27,229  22,197  20,435  16,247 
Total Stryker shareholders’ equity 12,807  11,730  9,966  9,550  8,511 
Solvency Ratio
Financial leverage1 2.36 2.32 2.23 2.14 1.91
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 28,680  25,923  22,269  20,430  16,069 
Adjusted total shareholders’ equity3 11,428  10,170  9,803  9,358  8,130 
Solvency Ratio
Adjusted financial leverage4 2.51 2.55 2.27 2.18 1.98

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Stryker shareholders’ equity
= 30,167 ÷ 12,807 = 2.36

2 Adjusted total assets. See details »

3 Adjusted total shareholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareholders’ equity
= 28,680 ÷ 11,428 = 2.51

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Stryker Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 2,083  3,553  1,020  1,647  1,439 
Net sales 14,884  13,601  12,444  11,325  9,946 
Profitability Ratio
Net profit margin1 13.99% 26.12% 8.20% 14.54% 14.47%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 2,258  1,898  1,267  1,473  1,143 
Net sales 14,884  13,601  12,444  11,325  9,946 
Profitability Ratio
Adjusted net profit margin3 15.17% 13.95% 10.18% 13.01% 11.49%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 2,083 ÷ 14,884 = 13.99%

2 Adjusted net earnings. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 2,258 ÷ 14,884 = 15.17%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Stryker Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 2,083  3,553  1,020  1,647  1,439 
Total Stryker shareholders’ equity 12,807  11,730  9,966  9,550  8,511 
Profitability Ratio
ROE1 16.26% 30.29% 10.23% 17.25% 16.91%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 2,258  1,898  1,267  1,473  1,143 
Adjusted total shareholders’ equity3 11,428  10,170  9,803  9,358  8,130 
Profitability Ratio
Adjusted ROE4 19.76% 18.66% 12.92% 15.74% 14.06%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
ROE = 100 × Net earnings ÷ Total Stryker shareholders’ equity
= 100 × 2,083 ÷ 12,807 = 16.26%

2 Adjusted net earnings. See details »

3 Adjusted total shareholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total shareholders’ equity
= 100 × 2,258 ÷ 11,428 = 19.76%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Stryker Corp.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 2,083  3,553  1,020  1,647  1,439 
Total assets 30,167  27,229  22,197  20,435  16,247 
Profitability Ratio
ROA1 6.90% 13.05% 4.60% 8.06% 8.86%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 2,258  1,898  1,267  1,473  1,143 
Adjusted total assets3 28,680  25,923  22,269  20,430  16,069 
Profitability Ratio
Adjusted ROA4 7.87% 7.32% 5.69% 7.21% 7.11%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 2019 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,083 ÷ 30,167 = 6.90%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 2,258 ÷ 28,680 = 7.87%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Stryker Corp.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.