Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Stryker Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Stryker Corp. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Stryker Corp. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Stryker Corp. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Stryker Corp. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Stryker Corp. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Stryker Corp. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Stryker Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Stryker Corp. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Stryker Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Equity
Stryker Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.84 | 1.07 | 0.87 | 0.84 | 0.72 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.50 | 0.57 | 0.58 | — | — | |
| Cigna Group | 0.71 | 0.65 | 0.83 | — | — | |
| CVS Health Corp. | 0.75 | 0.93 | 1.07 | — | — | |
| Danaher Corp. | 0.49 | 0.53 | 0.72 | — | — | |
| Elevance Health Inc. | 0.64 | 0.60 | 0.63 | — | — | |
| Humana Inc. | 0.80 | 0.51 | 0.49 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.51 | 0.49 | 0.51 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.64 | 0.66 | 0.71 | — | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.61 | 0.64 | 0.72 | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.80 | 0.90 | 0.91 | — | — | |
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
Debt to equity = Total debt ÷ Total Stryker shareholders’ equity
= 12,479 ÷ 14,877 = 0.84
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Stryker Corp. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity (including Operating Lease Liability)
Stryker Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Current operating lease liabilities (recorded in Accrued expenses and other liabilities) | 112) | 109) | 86) | —) | —) | |
| Noncurrent operating lease liabilities (recorded in Other noncurrent liabilities) | 310) | 325) | 301) | —) | —) | |
| Total debt (including operating lease liability) | 12,901) | 14,425) | 11,477) | 9,859) | 7,222) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.87 | 1.10 | 0.90 | 0.84 | 0.72 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.54 | 0.61 | 0.61 | — | — | |
| Cigna Group | 0.73 | 0.67 | 0.84 | — | — | |
| CVS Health Corp. | 1.01 | 1.23 | 1.39 | — | — | |
| Danaher Corp. | 0.52 | 0.56 | 0.74 | — | — | |
| Elevance Health Inc. | 0.67 | 0.63 | 0.65 | — | — | |
| Humana Inc. | 0.84 | 0.54 | 0.53 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.53 | 0.51 | 0.51 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.70 | 0.73 | 0.77 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.69 | 0.72 | 0.80 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.85 | 0.96 | 0.97 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Stryker shareholders’ equity
= 12,901 ÷ 14,877 = 0.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Stryker Corp. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital
Stryker Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Total capital | 27,356) | 27,075) | 23,897) | 21,589) | 17,188) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.46 | 0.52 | 0.46 | 0.46 | 0.42 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.34 | 0.36 | 0.37 | — | — | |
| Cigna Group | 0.42 | 0.40 | 0.45 | — | — | |
| CVS Health Corp. | 0.43 | 0.48 | 0.52 | — | — | |
| Danaher Corp. | 0.33 | 0.35 | 0.42 | — | — | |
| Elevance Health Inc. | 0.39 | 0.38 | 0.39 | — | — | |
| Humana Inc. | 0.44 | 0.34 | 0.33 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.34 | 0.33 | 0.34 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.39 | 0.40 | 0.41 | — | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.39 | 0.42 | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.44 | 0.47 | 0.48 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 12,479 ÷ 27,356 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Stryker Corp. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital (including Operating Lease Liability)
Stryker Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Current operating lease liabilities (recorded in Accrued expenses and other liabilities) | 112) | 109) | 86) | —) | —) | |
| Noncurrent operating lease liabilities (recorded in Other noncurrent liabilities) | 310) | 325) | 301) | —) | —) | |
| Total debt (including operating lease liability) | 12,901) | 14,425) | 11,477) | 9,859) | 7,222) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Total capital (including operating lease liability) | 27,778) | 27,509) | 24,284) | 21,589) | 17,188) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.46 | 0.52 | 0.47 | 0.46 | 0.42 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.35 | 0.38 | 0.38 | — | — | |
| Cigna Group | 0.42 | 0.40 | 0.46 | — | — | |
| CVS Health Corp. | 0.50 | 0.55 | 0.58 | — | — | |
| Danaher Corp. | 0.34 | 0.36 | 0.43 | — | — | |
| Elevance Health Inc. | 0.40 | 0.39 | 0.40 | — | — | |
| Humana Inc. | 0.46 | 0.35 | 0.34 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.35 | 0.34 | 0.34 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.41 | 0.42 | 0.44 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.41 | 0.42 | 0.45 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.49 | 0.49 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,901 ÷ 27,778 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Stryker Corp. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets
Stryker Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Total assets | 34,631) | 34,330) | 30,167) | 27,229) | 22,197) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.36 | 0.41 | 0.37 | 0.36 | 0.33 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | 0.27 | — | — | |
| Cigna Group | 0.22 | 0.21 | 0.24 | — | — | |
| CVS Health Corp. | 0.24 | 0.28 | 0.31 | — | — | |
| Danaher Corp. | 0.27 | 0.28 | 0.35 | — | — | |
| Elevance Health Inc. | 0.24 | 0.23 | 0.26 | — | — | |
| Humana Inc. | 0.29 | 0.20 | 0.20 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.28 | 0.27 | 0.28 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.22 | 0.22 | 0.23 | — | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.24 | 0.24 | 0.27 | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.30 | 0.31 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 12,479 ÷ 34,631 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Stryker Corp. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets (including Operating Lease Liability)
Stryker Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt | 7) | 761) | 859) | 1,373) | 632) | |
| Long-term debt, excluding current maturities | 12,472) | 13,230) | 10,231) | 8,486) | 6,590) | |
| Total debt | 12,479) | 13,991) | 11,090) | 9,859) | 7,222) | |
| Current operating lease liabilities (recorded in Accrued expenses and other liabilities) | 112) | 109) | 86) | —) | —) | |
| Noncurrent operating lease liabilities (recorded in Other noncurrent liabilities) | 310) | 325) | 301) | —) | —) | |
| Total debt (including operating lease liability) | 12,901) | 14,425) | 11,477) | 9,859) | 7,222) | |
| Total assets | 34,631) | 34,330) | 30,167) | 27,229) | 22,197) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.37 | 0.42 | 0.38 | 0.36 | 0.33 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | 0.28 | — | — | |
| Cigna Group | 0.22 | 0.22 | 0.24 | — | — | |
| CVS Health Corp. | 0.33 | 0.37 | 0.40 | — | — | |
| Danaher Corp. | 0.28 | 0.29 | 0.36 | — | — | |
| Elevance Health Inc. | 0.25 | 0.24 | 0.27 | — | — | |
| Humana Inc. | 0.31 | 0.21 | 0.22 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.29 | 0.28 | 0.28 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.24 | 0.24 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.27 | 0.28 | 0.30 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.33 | 0.33 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,901 ÷ 34,631 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Stryker Corp. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Financial Leverage
Stryker Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 34,631) | 34,330) | 30,167) | 27,229) | 22,197) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.33 | 2.62 | 2.36 | 2.32 | 2.23 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.10 | 2.21 | 2.18 | — | — | |
| Cigna Group | 3.29 | 3.09 | 3.44 | — | — | |
| CVS Health Corp. | 3.10 | 3.32 | 3.48 | — | — | |
| Danaher Corp. | 1.84 | 1.92 | 2.05 | — | — | |
| Elevance Health Inc. | 2.70 | 2.61 | 2.44 | — | — | |
| Humana Inc. | 2.76 | 2.55 | 2.42 | — | — | |
| Intuitive Surgical Inc. | 1.14 | 1.15 | 1.18 | — | — | |
| Medtronic PLC | 1.81 | 1.79 | 1.79 | 1.80 | — | |
| UnitedHealth Group Inc. | 2.96 | 3.01 | 3.02 | — | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.58 | 2.62 | 2.69 | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.79 | 2.95 | 2.93 | — | — | |
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
Financial leverage = Total assets ÷ Total Stryker shareholders’ equity
= 34,631 ÷ 14,877 = 2.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Stryker Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Interest Coverage
Stryker Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 1,994) | 1,599) | 2,083) | 3,553) | 1,020) | |
| Add: Income tax expense | 287) | 355) | 479) | (1,197) | 1,043) | |
| Add: Interest expense | 337) | 315) | 287) | 264) | 247) | |
| Earnings before interest and tax (EBIT) | 2,618) | 2,269) | 2,849) | 2,620) | 2,310) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.77 | 7.20 | 9.93 | 9.92 | 9.35 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 16.41 | 10.10 | 7.09 | — | — | |
| Cigna Group | 6.22 | 8.76 | 5.11 | — | — | |
| CVS Health Corp. | 5.16 | 4.36 | 3.96 | — | — | |
| Danaher Corp. | 32.92 | 17.35 | 31.44 | — | — | |
| Elevance Health Inc. | 10.93 | 8.96 | 9.02 | — | — | |
| Humana Inc. | 11.49 | 17.52 | 15.34 | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 5.21 | 4.71 | 4.60 | 5.95 | — | |
| UnitedHealth Group Inc. | 14.44 | 13.47 | 11.55 | — | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.75 | 8.49 | 6.98 | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.11 | 7.72 | 8.87 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,618 ÷ 337 = 7.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Stryker Corp. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Fixed Charge Coverage
Stryker Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 1,994) | 1,599) | 2,083) | 3,553) | 1,020) | |
| Add: Income tax expense | 287) | 355) | 479) | (1,197) | 1,043) | |
| Add: Interest expense | 337) | 315) | 287) | 264) | 247) | |
| Earnings before interest and tax (EBIT) | 2,618) | 2,269) | 2,849) | 2,620) | 2,310) | |
| Add: Operating lease expense | 133) | 130) | 133) | 138) | 125) | |
| Earnings before fixed charges and tax | 2,751) | 2,399) | 2,982) | 2,758) | 2,435) | |
| Interest expense | 337) | 315) | 287) | 264) | 247) | |
| Operating lease expense | 133) | 130) | 133) | 138) | 125) | |
| Fixed charges | 470) | 445) | 420) | 402) | 372) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.85 | 5.39 | 7.10 | 6.86 | 6.55 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 10.21 | 6.68 | 5.14 | — | — | |
| Cigna Group | 5.61 | 7.84 | 4.67 | — | — | |
| CVS Health Corp. | 3.03 | 2.75 | 2.56 | — | — | |
| Danaher Corp. | 10.85 | 7.10 | 8.38 | — | — | |
| Elevance Health Inc. | 8.48 | 6.10 | 7.34 | — | — | |
| Humana Inc. | 8.05 | 12.02 | 9.76 | — | — | |
| Intuitive Surgical Inc. | 93.66 | 58.48 | 79.65 | — | — | |
| Medtronic PLC | 4.31 | 3.98 | 3.97 | 4.87 | — | |
| UnitedHealth Group Inc. | 8.80 | 8.51 | 7.65 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 6.22 | 5.60 | 4.86 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 8.58 | 5.70 | 6.61 | — | — | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,751 ÷ 470 = 5.85
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Stryker Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |