Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Stryker Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the financial turnover ratios and related operating metrics over the observed periods reveals several notable trends and changes in the company's operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio remained relatively stable from early 2018 through early 2020, fluctuating around 1.5 to 1.6 times per period. Beginning in mid-2021, there is a clear upward trend, with the ratio increasing steadily from 1.58 to a peak of 1.85 by the end of 2021, before slightly decreasing to 1.77 in early 2022. This improvement suggests enhanced efficiency in managing and selling inventory over time.
- Receivables Turnover
- Receivables turnover ratios exhibit moderate fluctuations. The ratio oscillated between approximately 5.1 and 6.4 over the timeline, with no consistent long-term directional trend. The turnover decreased in late 2018 and late 2020 periods but generally hovered around a mean of about 5.8 times, indicating steady collection efficiency of receivables.
- Payables Turnover
- The payables turnover ratio shows a downward trajectory, falling from a high near 8.3 in early 2018 to around 5.4-5.7 in early 2022. This trend, along with increasing average payables payment periods, suggests the company has been taking longer to pay its suppliers, possibly as a cash management strategy or reflecting changes in supplier agreements.
- Working Capital Turnover
- The working capital turnover ratio declined significantly from over 4.1 in early 2018 to a low near 1.6 by mid-2020, indicating less efficient use of working capital during this period. However, from late 2020 onwards, there is a recovery trend with the ratio rising again above 4.0 by early 2022, signaling improved operational efficiency and better utilization of working capital resources.
- Average Inventory Processing Period
- The average number of days inventory remains on hand increased slightly from 222 days in early 2018 to a peak of 244 days in mid-2020, indicating slower inventory turnover during that time. Subsequently, this period decreased steadily, reaching 197 days by late 2021, before edging up to 206 days in early 2022. This decline aligns with the improving inventory turnover ratio, reflecting more rapid inventory movement.
- Average Receivable Collection Period
- The collection period fluctuated moderately between 57 and 71 days without a clear long-term trend. Some elongation occurred in late 2018 and late 2020, while other periods showed improved collection times. Overall, receivables management appears stable but with some variability.
- Operating Cycle
- The operating cycle, representing the combined length of inventory holding and receivables collection periods, generally increased from about 282 days in early 2018 to a peak around 310 days by late 2020, indicating lengthening operations. From late 2020 onwards, it decreased steadily to about 261 days in late 2021, with a slight uptick to 269 days as of early 2022, mirroring changes in inventory and receivables periods.
- Average Payables Payment Period
- The payables payment period extended from approximately 44 days in early 2018 to as much as 67 days by late 2021, a significant lengthening that continued into early 2022 at 63 days. This indicates a tendency to delay payments to suppliers over time, potentially to optimize cash outflows.
- Cash Conversion Cycle
- The cash conversion cycle increased from around 238 days in early 2018 to a higher range above 250 days during 2019 and 2020, reflecting slower net working capital turnover. From late 2020, there was a notable improvement with the cycle decreasing to 194 days by late 2021, the shortest in the observed period, before rising slightly to 206 days in early 2022. This shortening demonstrates enhanced liquidity management and operational cash flow efficiency in the most recent periods.
In summary, the company exhibited periods of slower operational efficiency and lengthening cash cycles around 2019 and 2020, followed by a marked improvement in inventory management, working capital turnover, and cash conversion efficiency from late 2020 through 2021. The extended payment terms toward suppliers have been a consistent trend, suggesting strategic efforts to conserve cash or adjust supplier terms. Overall, the recent trends point towards stronger operational discipline and improved financial liquidity management.
Turnover Ratios
Average No. Days
Inventory Turnover
Stryker Corp., inventory turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Inventory turnover
= (Cost of salesQ1 2022
+ Cost of salesQ4 2021
+ Cost of salesQ3 2021
+ Cost of salesQ2 2021)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data reveals several notable trends regarding the cost of sales, inventories, and inventory turnover over the period analyzed.
- Cost of Sales
- The cost of sales exhibited a general upward trend throughout the timeframe. Beginning at 1,104 million USD in the first quarter of 2018, it increased with minor fluctuations to reach 1,541 million USD by the first quarter of 2022. Notably, there were periodic rises towards the end of each year, with December quarters consistently recording higher costs, peaking at 1,656 million USD in December 2021 before a slight decrease in the following quarter.
- Inventories
- Inventories consistently increased over the period, starting from 2,664 million USD in March 2018 and reaching 3,525 million USD by March 2022. Although the rate of increase slowed somewhat in the latter part of the timeline, inventories remained relatively high, with a slight dip observed in December 2021 and March 2022 compared to preceding quarters. Overall, the inventory base expanded steadily, indicating greater stockholding.
- Inventory Turnover
- The inventory turnover ratio generally trended upwards, moving from 1.64 in early 2018 to a peak of 1.85 in December 2021, before a modest decline to 1.77 in the first quarter of 2022. This suggests an improvement in inventory management or sales efficiency over time, with inventory being sold and replenished at a faster rate in the later years compared to the earlier quarters. The turnover ratios also reflect slight seasonality aligned with the inventory and cost of sales data.
In summary, the data indicates a steady increase in both cost of sales and inventory levels, coupled with an improving inventory turnover ratio. This combination points toward enhanced operational efficiency in managing inventory relative to sales, despite the rising scale of operations evidenced by higher absolute inventory and cost of sales values.
Receivables Turnover
Stryker Corp., receivables turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Accounts receivable, less allowance | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Receivables turnover
= (Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021)
÷ Accounts receivable, less allowance
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's quarterly performance related to net sales, accounts receivable, and receivables turnover over the examined periods.
- Net Sales
-
Net sales experienced fluctuations throughout the timeline. Starting from approximately $3.24 billion in the first quarter of 2018, sales generally increased, reaching a peak above $4.7 billion by the fourth quarter of 2021. A noticeable dip occurred in the second quarter of 2020, where sales decreased to around $2.76 billion, coinciding with a broader global economic disruption. This downturn was short-lived, as sales quickly rebounded in subsequent quarters, demonstrating resilience and strong recovery, ultimately surpassing previous highs by the end of 2021 and maintaining elevated levels into early 2022.
- Accounts Receivable, Net
-
The accounts receivable followed a generally upward trend across the period, starting at about $2.11 billion in the first quarter of 2018 and increasing to roughly $3.0 billion by the first quarter of 2022. This increase in receivables corresponds with the growth in sales, indicating more credit extended to customers. Notably, there was a slight decrease in receivables during the mid-2020 period, aligning with the decline in net sales, before rising again in the following quarters. The relative increase in receivables suggests a growth in sales on credit terms or changes in collection cycles.
- Receivables Turnover Ratio
-
The receivables turnover ratio, which measures how efficiently the company collects its receivables, showed some variation across the quarters. The ratio mostly fluctuated between 5.1 and 6.4 times per year, indicating moderate consistency in collection performance. The ratio dipped notably toward the end of 2019, reaching near 5.14, which could signal slower collections possibly due to the increase in accounts receivable. Conversely, it peaked in the second quarter of 2020 at 6.39, likely reflecting efforts to collect receivables more quickly during a period of reduced sales. Thereafter, the ratio remained within a moderate range, suggesting stable but slightly variable efficiency in receivables management across the periods.
Overall, the company demonstrated robust sales growth over the period with resilience during economic disruptions. The concurrent rise in accounts receivable indicates an expansion in credit sales or elongation of collection periods, while the receivables turnover ratio suggests ongoing adjustments in collection efficiency. Monitoring these metrics will remain crucial to sustaining healthy cash flows and operational effectiveness.
Payables Turnover
Stryker Corp., payables turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Payables turnover
= (Cost of salesQ1 2022
+ Cost of salesQ4 2021
+ Cost of salesQ3 2021
+ Cost of salesQ2 2021)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends across the observed periods. The cost of sales demonstrated a generally increasing pattern over time, starting at 1104 million US dollars in the first quarter of 2018 and rising to 1541 million US dollars by the first quarter of 2022. There were fluctuations within this upward trajectory, with periods of decline such as between the first quarters of 2020 and 2021, but the long-term trend is an increase, indicating growth in production or sales volume or potentially rising input costs.
Accounts payable also showed an overall increasing trend from 529 million US dollars in March 2018 to 1084 million US dollars in March 2022. This increase suggests that the company has been extending its payment obligations or scaling its operations, leading to higher amounts owed to suppliers or creditors. Despite some variability, accounts payable grew significantly, with a pronounced jump seen particularly during the later periods from 2020 onwards.
The payables turnover ratio, which measures how many times the company pays off its suppliers during a period, exhibited a declining trend. Beginning at 8.28 in the first quarter of 2018, the ratio decreased to 5.75 by March 2022. This decline indicates that the company is taking longer to pay its suppliers over time or that payables have grown faster relative to cost of sales. Such a pattern might reflect strategic payment management practices or matching payment terms with longer credit allowances.
In summary, the financial data suggest that the company has been experiencing growth in costs and obligations to suppliers, while simultaneously stretching the time taken to settle these obligations, as reflected in the declining payables turnover. These trends collectively may highlight operational expansion and altered working capital dynamics that warrant ongoing monitoring to ensure liquidity and supplier relationships remain well-managed.
Working Capital Turnover
Stryker Corp., working capital turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Working capital turnover
= (Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends concerning working capital, net sales, and working capital turnover over the observed periods.
- Working Capital
- Working capital fluctuated significantly throughout the period. Initially, it showed a steady increase from 3,051 million USD at the end of March 2018 to a peak of 6,960 million USD by December 2019. Following this peak, there was a sharp decline in the fourth quarter of 2020 to 4,666 million USD. In subsequent quarters through March 2022, working capital stabilized somewhat, fluctuating between approximately 4,300 million USD and 5,468 million USD, indicating a normalization phase after the volatility seen in 2019 and 2020.
- Net Sales
- Net sales exhibited a generally upward trajectory with some intermittent fluctuations. Sales rose steadily from 3,241 million USD in March 2018 to a high of 4,701 million USD in December 2021. Notably, there was a decline in the second quarter of 2020 to 2,764 million USD, which is the lowest point within the time frame, possibly reflecting external market or operational challenges. However, strong recovery followed, with sales surpassing previous highs by the end of 2021 before slightly decreasing in the first quarter of 2022.
- Working Capital Turnover
- The working capital turnover ratio demonstrates an inverse trend relative to working capital levels. Early in the period, the turnover decreased steadily from 4.17 in March 2018 to a low of 1.61 in September 2020, corresponding to the period when working capital was at its peak and net sales suffered a decline. Subsequently, turnover ratios improved markedly, climbing back to 4.04 by March 2022, indicating improved efficiency in utilizing working capital to generate sales despite the earlier volatility.
Overall, the data suggests that while working capital experienced significant fluctuations, the company managed to restore its operational efficiency in terms of generating sales from working capital by the end of the observed period. The temporary dip in sales and turnover during mid-2020 indicates external or internal disruptions, but recovery trends imply responsive adjustments in working capital management and sales strategy in subsequent quarters.
Average Inventory Processing Period
Stryker Corp., average inventory processing period calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of inventory management metrics reveals notable trends in the inventory turnover ratio and the average inventory processing period over the examined quarterly intervals.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibits a general upward trend. Initially stable at approximately 1.64 during early 2018, it gradually declines slightly towards mid-2020, reaching a low near 1.50. From that point onwards, there is a clear and sustained increase, culminating at 1.85 in the fourth quarter of 2021, before a mild reduction to 1.77 by the first quarter of 2022. This upward movement suggests enhanced efficiency in inventory management, reflecting faster sales or better inventory utilization over time.
- Average Inventory Processing Period (Days)
- The average inventory processing period, representing the average days inventory is held, inversely mirrors the inventory turnover trend. Beginning around 222 days at the start of 2018, it slowly lengthens to peak at approximately 244 days by mid to late 2020, indicating slower inventory movement during that period. Following this peak, a marked reduction occurs, with the period shortening steadily to a low of 197 days by the third quarter of 2021, before slightly increasing again to 206 days in early 2022. The decreasing processing period aligns with the rising turnover ratio and implies improved inventory management efficiency.
In summary, the company’s inventory performance reflects a transitional phase where inventory turnover initially weakened but then markedly improved, leading to faster inventory processing in recent quarters. This improvement could suggest effective operational adjustments or more favorable market conditions contributing to enhanced inventory liquidity.
Average Receivable Collection Period
Stryker Corp., average receivable collection period calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The receivables turnover ratio and the average receivable collection period exhibit notable trends over the examined quarters, reflecting fluctuations in the company's efficiency in managing its receivables.
- Receivables Turnover Ratio
- The receivables turnover ratio generally fluctuates within a moderate range. Initially, it increased from 6.04 in the first quarter of 2018 to a peak of 6.39 in the third quarter of the same year, suggesting improved efficiency in collecting receivables. However, the ratio subsequently declined to a low of 5.14 by the end of 2019, indicating a slower collection process during that period. Thereafter, the ratio showed recovery with periodic increases and decreases, reaching approximately 5.83 by the first quarter of 2022. This pattern indicates varying effectiveness in receivables management rather than a consistent trend of improvement or deterioration.
- Average Receivable Collection Period
- The average collection period inversely mirrors the turnover ratio, as expected. It started at 60 days in early 2018, improved to a minimum of 57 days in the third quarter of 2018, suggesting faster collections. This metric then worsened significantly, peaking at 71 days at the end of 2019, which aligns with the lowest receivables turnover ratio during the same timeframe. Subsequently, the collection period fluctuated around the low-to-mid 60s days, stabilizing near 63 days by the first quarter of 2022. These fluctuations may reflect changes in credit policies, customer payment behavior, or external economic conditions impacting the company’s receivables.
Overall, the data indicates periods of both efficiency gains and setbacks in receivables management over the timeline, with notable degradation at the end of 2019 likely attributable to external or operational factors. The recovery phases suggest that measures may have been employed to improve collection processes, though the results have remained somewhat variable into early 2022.
Operating Cycle
Stryker Corp., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The analyzed data reveals distinct trends in the company's operational efficiency over the examined periods. The focus lies on inventory management, receivable collection, and the overall operating cycle.
- Average Inventory Processing Period
- The average inventory processing period initially shows slight fluctuations around the 222 to 237-day range from early 2018 through 2019. Starting in 2020, there is a notable peak around mid-year, reaching approximately 244 days, indicating a temporary slowdown in inventory turnover. However, a consistent downward trend follows, especially from early 2021 through the first quarter of 2022, where the period reduces to roughly 206 days. This suggests improvements in inventory management, leading to faster processing and turnover.
- Average Receivable Collection Period
- The average receivable collection period remains relatively stable over time, mostly oscillating between 57 and 71 days. A slight increase is observed towards the end of 2019, with the period reaching up to 71 days, possibly reflecting slower cash collection in that quarter. Afterward, the period fluctuates but generally maintains a range close to the early values, indicating consistent credit and collection policies without substantial improvement or deterioration.
- Operating Cycle
- The operating cycle exhibits a gradual increase from 282 days in the first quarter of 2018 to a peak of approximately 310 days in late 2020. This lengthening phase suggests that the company initially experienced longer combined durations of inventory holding and receivable collection. Post-2020, the operating cycle shows a steady contraction, declining to about 269 days by the first quarter of 2022, reflecting enhanced overall operational efficiency, coinciding with reduced inventory processing times.
Overall, the company demonstrates successful operational improvements after a period of expansion in asset processing durations, particularly in managing inventory. The receivable collection period remains stable, indicating steady credit management. The combined effects lead to a reduced operating cycle towards the end of the observed timeframe, suggesting increased efficiency in working capital management.
Average Payables Payment Period
Stryker Corp., average payables payment period calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of payables-related financial metrics over the reported quarters reveals notable trends and changes in the company's management of its accounts payable.
- Payables Turnover Ratio
- The payables turnover ratio exhibits a general downward trend from the beginning to the end of the observation period. Starting at a ratio of 8.28 in the first quarter of 2018, the turnover ratio fluctuates moderately in subsequent quarters but shows a clear decline in more recent periods, reaching 5.75 by the first quarter of 2022. This decline suggests that the company has been paying its suppliers less frequently relative to its accounts payable balance or purchases over time.
- Average Payables Payment Period (Days)
- The average payables payment period, which indicates the average number of days taken to pay suppliers, correlates inversely with the payables turnover ratio. It starts at 44 days in early 2018, increases gradually over the course of the years, and reaches a peak of 67 days in the fourth quarter of 2021, before slightly declining to 63 days by the first quarter of 2022. This increase suggests that the company is extending its payment terms or taking longer to settle its payables.
In summary, the company appears to have progressively lengthened its accounts payable payment cycle throughout the period under review. The declining payables turnover ratio alongside the increasing payment days indicates a strategic shift or operational change that results in slower payments to suppliers. This could be a deliberate liquidity management tactic, though it may also reflect changes in supplier agreements or cash flow considerations. The recent slight reduction in the average payment period might suggest some adjustment to mitigate any potential negative impacts of extended payment times.
Cash Conversion Cycle
Stryker Corp., cash conversion cycle calculation (quarterly data)
No. days
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited a moderately declining trend over the analyzed timeframe. Beginning at 222 days in March 2018, it peaked around mid-2019 at approximately 237 days and then steadily decreased to a low of 197 days by December 2021. A slight increase to 206 days was observed in March 2022. This pattern indicates an improvement in inventory turnover efficiency in the latter periods.
- Average Receivable Collection Period
- The average receivable collection period demonstrated some variability but remained relatively stable overall. It fluctuated between 57 and 71 days, with a notable increase in December 2018 and December 2020 to 63 and 69 days respectively. The latest figures in early 2022 stabilized around the low 60s range, suggesting consistent credit collection practices without significant acceleration or delay.
- Average Payables Payment Period
- The average payables payment period showed an upward trend throughout the timeframe. Starting at 44 days in the first quarter of 2018, it gradually lengthened, with spikes at 56 days in December 2020 and reaching a peak of 67 days in December 2021. The period slightly decreased to 63 days by March 2022. This extension indicates a tendency to delay supplier payments, potentially improving short-term liquidity.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) remained elevated initially, fluctuating around 235 to 255 days from 2018 through early 2020. Starting mid-2021, a marked reduction is visible, with the CCC dropping to a low of 194 days in December 2021 before slightly rebounding to 206 days in March 2022. The declining CCC corresponds with improvements in inventory processing and suggests enhanced operational efficiency and faster cash turnover.