Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Stryker Corp., liquidity 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Current Ratio
- The current ratio demonstrates a decline from 3.09 in March 2017 to a low of 1.64 in March 2018, indicating a reduction in current assets relative to current liabilities during this period. Following March 2018, there is a gradual improvement until December 2019, peaking at 2.58. The ratio maintains elevated levels through June and September 2020, around 2.9, before dropping again to 1.93 in December 2020. In 2021, the ratio fluctuates around 2.1 to 2.27, before declining to 1.98 by March 2022. This pattern suggests intermittent changes in liquidity, with a general trend of moderation in the more recent quarters.
- Quick Ratio
- The quick ratio trends downward initially from 2.02 in March 2017 to 0.95 in March 2018, mirroring the current ratio’s early decline but indicating a sharper contraction in liquid assets excluding inventory. From March 2018 onward, the quick ratio shows improvement, reaching 1.66 in December 2019 and peaking at 2.04 in September 2020. Subsequently, the ratio decreases again in late 2020 and early 2021, followed by fluctuations between 1.03 and 1.33 during 2021 and early 2022. These movements highlight variable levels of readily available assets relative to current liabilities.
- Cash Ratio
- The cash ratio experiences a consistent decline from 1.28 in March 2017 to a low of 0.47 in June and September 2019, indicating a reduction in cash and cash equivalents relative to current liabilities. A notable recovery occurs in December 2019, rising sharply to 1.01, and peaks further to 1.53 in September 2020. However, from December 2020 onward, the ratio declines steadily to 0.35 by March 2022, revealing diminished cash reserves compared to current liabilities in recent quarters. This trend suggests a more conservative cash position, despite occasional temporary increases.
Current Ratio
Stryker Corp., current ratio 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 8,725) | 10,017) | 9,460) | 9,032) | 8,979) | 9,707) | 13,545) | 12,801) | 10,736) | 11,360) | 8,566) | 8,185) | 7,888) | 9,733) | 7,918) | 7,413) | 7,851) | 7,993) | 7,710) | 8,478) | 7,889) | |||||||
| Current liabilities | 4,408) | 4,549) | 4,449) | 4,252) | 3,953) | 5,041) | 4,689) | 4,405) | 4,162) | 4,400) | 3,921) | 3,946) | 3,713) | 4,807) | 4,153) | 4,046) | 4,800) | 3,485) | 3,258) | 3,552) | 2,554) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 1.98 | 2.20 | 2.13 | 2.12 | 2.27 | 1.93 | 2.89 | 2.91 | 2.58 | 2.58 | 2.18 | 2.07 | 2.12 | 2.02 | 1.91 | 1.83 | 1.64 | 2.29 | 2.37 | 2.39 | 3.09 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | 1.72 | 1.70 | 1.57 | 1.43 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | 0.88 | 0.88 | 0.94 | 0.95 | 0.93 | 0.91 | 0.95 | 0.98 | 0.99 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | 1.55 | 1.59 | 1.64 | 1.53 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | 6.86 | 7.04 | 6.38 | 4.96 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 2.89 | 2.65 | 2.10 | 2.16 | 1.87 | 2.13 | 2.75 | 2.77 | 2.67 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.78 | 0.79 | 0.77 | 0.77 | 0.74 | 0.74 | 0.82 | 0.84 | 0.75 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,725 ÷ 4,408 = 1.98
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations in key liquidity measures over the reported periods.
- Current Assets
- Current assets experienced moderate fluctuations without a clear upward or downward trend from March 2017 through March 2022. Initially, current assets ranged around 7,800 million USD, with minor decreases and increases observed through 2017 and early 2018. A significant increase occurred in the last quarters of 2018 and 2019, peaking at 13,545 million USD by September 2020. However, after this peak, current assets declined noticeably in late 2020 and remained within a lower range near 8,700 to 10,000 million USD through March 2022.
- Current Liabilities
- Current liabilities followed a generally increasing trajectory from 2017 through 2020, rising from approximately 2,500 million USD to over 5,000 million USD by late 2020. This upward trend is punctuated by periodic fluctuations, particularly a sharp increase to 4,800 million USD in March 2018, followed by a slight decrease and subsequent increases until December 2020. From 2021 onwards, current liabilities stabilized, fluctuating mildly between approximately 4,400 million USD and 4,900 million USD, ending at 4,408 million USD in March 2022.
- Current Ratio
- The current ratio, indicating short-term liquidity, demonstrates significant variability over the periods. Starting from a strong 3.09 in March 2017, it declined steadily throughout that year and into early 2018, reaching a low near 1.64 by March 2018. Afterward, the ratio gradually improved, peaking between 2.58 and 2.91 in late 2019 and mid-2020. Nevertheless, the ratio fell again during late 2020 and into 2021, moving irregularly between approximately 1.93 and 2.27, before slightly decreasing to 1.98 by March 2022. The observed fluctuations suggest periodic changes in the balance between current assets and liabilities, reflecting shifts in liquidity management or operational conditions.
Overall, the data indicates a period of increased current assets and liabilities through 2019 and 2020, resulting in elevated liquidity ratios during this span. Subsequently, both assets and liabilities declined or stabilized, causing the current ratio to approach more moderate levels. These dynamics highlight the company's variable short-term liquidity position over the examined timeframe.
Quick Ratio
Stryker Corp., quick ratio 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,458) | 2,944) | 2,563) | 2,241) | 2,238) | 2,943) | 7,083) | 6,539) | 3,964) | 4,337) | 1,948) | 1,754) | 1,674) | 3,616) | 1,918) | 1,641) | 2,179) | 2,542) | 2,592) | 3,649) | 3,213) | |||||||
| Marketable securities | 72) | 75) | 76) | 84) | 74) | 81) | 78) | 80) | 84) | 88) | 88) | 85) | 84) | 83) | 292) | 279) | 276) | 251) | 97) | 98) | 66) | |||||||
| Accounts receivable, less allowance | 2,991) | 3,022) | 2,817) | 2,714) | 2,616) | 2,701) | 2,426) | 2,203) | 2,646) | 2,893) | 2,438) | 2,408) | 2,284) | 2,332) | 2,076) | 2,089) | 2,108) | 2,198) | 1,965) | 1,905) | 1,875) | |||||||
| Total quick assets | 4,521) | 6,041) | 5,456) | 5,039) | 4,928) | 5,725) | 9,587) | 8,822) | 6,694) | 7,318) | 4,474) | 4,247) | 4,042) | 6,031) | 4,286) | 4,009) | 4,563) | 4,991) | 4,654) | 5,652) | 5,154) | |||||||
| Current liabilities | 4,408) | 4,549) | 4,449) | 4,252) | 3,953) | 5,041) | 4,689) | 4,405) | 4,162) | 4,400) | 3,921) | 3,946) | 3,713) | 4,807) | 4,153) | 4,046) | 4,800) | 3,485) | 3,258) | 3,552) | 2,554) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.03 | 1.33 | 1.23 | 1.19 | 1.25 | 1.14 | 2.04 | 2.00 | 1.61 | 1.66 | 1.14 | 1.08 | 1.09 | 1.25 | 1.03 | 0.99 | 0.95 | 1.43 | 1.43 | 1.59 | 2.02 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 1.21 | 1.28 | 1.25 | 1.19 | 1.16 | 1.14 | 1.01 | 0.93 | 0.83 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | 0.54 | 0.55 | 0.59 | 0.58 | 0.54 | 0.53 | 0.58 | 0.63 | 0.60 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.23 | 1.33 | 1.33 | 1.35 | 1.43 | 1.42 | 1.45 | 1.49 | 1.37 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 4.40 | 4.34 | 4.66 | 5.12 | 5.76 | 5.96 | 5.93 | 5.40 | 4.00 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 2.06 | 1.91 | 1.58 | 1.63 | 1.37 | 1.50 | 2.05 | 2.02 | 1.95 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.72 | 0.72 | 0.71 | 0.71 | 0.68 | 0.68 | 0.75 | 0.76 | 0.66 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,521 ÷ 4,408 = 1.03
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated considerable fluctuation over the analyzed periods. Initially, from March 2017 to December 2017, there was a general decline, dropping from 5,154 million USD to 4,991 million USD with an intermittent rise in June 2017. This was followed by a further decrease in early 2018, reaching a low of 4,009 million USD in June 2018. Subsequently, a notable recovery occurred towards the end of 2018, peaking at 7,318 million USD by December 2019, which represents the highest value in the dataset. Afterward, fluctuations persisted, with values dropping sharply to 5,725 million USD in December 2020, rising again modestly through 2021, but ending on a lower note at 4,521 million USD by March 2022.
- Current Liabilities
- Current liabilities exhibited a general upward trend over the period, starting at 2,554 million USD in March 2017 and increasing significantly to 4,800 million USD by March 2018. After this peak, liabilities showed variability, generally remaining within the range of 3,700 to 5,000 million USD. A secondary peak was observed in December 2020 at 5,041 million USD. Towards the end of the series, liabilities slightly decreased but still remained relatively elevated, with a value of 4,408 million USD in March 2022.
- Quick Ratio
- The quick ratio indicates liquidity and exhibited notable volatility throughout the periods. Starting at a strong 2.02 in March 2017, it declined sharply through 2017 and early 2018, reaching a low of 0.95 by March 2018, suggesting reduced short-term liquidity. Thereafter, improvement is visible, with the ratio increasing to a peak of 2.04 in September 2020, indicating heightened liquidity during that period. However, this was followed by a decline and fluctuating values close to 1.0 through late 2020 into early 2022, ending at 1.03 in March 2022, which suggests a return to tighter liquidity conditions.
- Summary Insights
- The data reveals that quick assets and current liabilities have both experienced substantial fluctuations, impacting liquidity as reflected in the quick ratio. Periods of high quick assets typically coincide with improved liquidity ratios, while increases in current liabilities often press the quick ratio downward. The significant dip in liquidity around early 2018 corresponds with a reduction in quick assets and increased liabilities, signaling potential short-term financial strain during that time. Conversely, the strong liquidity shown in mid to late 2020 coincides with elevated quick assets and relatively stable liabilities, reflecting a period of improved financial stability. The recent downward trend in quick assets along with persistent current liabilities near high levels suggests a moderate decline in liquidity by the first quarter of 2022.
Cash Ratio
Stryker Corp., cash ratio 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,458) | 2,944) | 2,563) | 2,241) | 2,238) | 2,943) | 7,083) | 6,539) | 3,964) | 4,337) | 1,948) | 1,754) | 1,674) | 3,616) | 1,918) | 1,641) | 2,179) | 2,542) | 2,592) | 3,649) | 3,213) | |||||||
| Marketable securities | 72) | 75) | 76) | 84) | 74) | 81) | 78) | 80) | 84) | 88) | 88) | 85) | 84) | 83) | 292) | 279) | 276) | 251) | 97) | 98) | 66) | |||||||
| Total cash assets | 1,530) | 3,019) | 2,639) | 2,325) | 2,312) | 3,024) | 7,161) | 6,619) | 4,048) | 4,425) | 2,036) | 1,839) | 1,758) | 3,699) | 2,210) | 1,920) | 2,455) | 2,793) | 2,689) | 3,747) | 3,279) | |||||||
| Current liabilities | 4,408) | 4,549) | 4,449) | 4,252) | 3,953) | 5,041) | 4,689) | 4,405) | 4,162) | 4,400) | 3,921) | 3,946) | 3,713) | 4,807) | 4,153) | 4,046) | 4,800) | 3,485) | 3,258) | 3,552) | 2,554) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.35 | 0.66 | 0.59 | 0.55 | 0.58 | 0.60 | 1.53 | 1.50 | 0.97 | 1.01 | 0.52 | 0.47 | 0.47 | 0.77 | 0.53 | 0.47 | 0.51 | 0.80 | 0.83 | 1.05 | 1.28 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | 0.60 | 0.46 | 0.46 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | 0.16 | 0.18 | 0.20 | 0.17 | 0.15 | 0.18 | 0.19 | 0.27 | 0.21 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | 1.04 | 1.04 | 1.10 | 0.95 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 3.58 | 3.66 | 3.98 | 4.42 | 5.04 | 5.30 | 5.27 | 4.85 | 3.44 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 1.36 | 1.27 | 1.17 | 1.18 | 0.99 | 1.06 | 1.33 | 1.27 | 1.25 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.37 | 0.36 | 0.35 | 0.35 | 0.33 | 0.33 | 0.37 | 0.42 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,530 ÷ 4,408 = 0.35
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrate notable fluctuations over the examined periods. Initially, cash assets declined from 3,279 million US dollars in the first quarter of 2017 to a low of 1,758 million in the first quarter of 2019. Subsequently, there was a recovery, peaking at 7,161 million by the third quarter of 2020. Following this peak, cash assets experienced a significant decline, falling to 1,530 million by the first quarter of 2022. This pattern suggests periods of both aggressive cash accumulation and substantial cash outflows or investments.
- Current Liabilities
- Current liabilities show an overall upward trend with some fluctuations. Starting at 2,554 million in the first quarter of 2017, liabilities rose sharply to 4,800 million by the first quarter of 2018. This level remained relatively high with moderate variability, reaching 5,041 million by the fourth quarter of 2020, before a gradual decline to 4,408 million by the first quarter of 2022. The increase indicates growing short-term obligations over the period, while the recent decrease may reflect improved liability management or repayment.
- Cash Ratio
- The cash ratio exhibits significant volatility across the quarters. It began at a relatively strong level of 1.28 in the first quarter of 2017, indicating cash assets sufficiently covered current liabilities. This ratio then declined steadily, reaching a low of 0.35 by the first quarter of 2022, implying the company's cash coverage of its current liabilities weakened over time. Notable temporary improvements occurred around the fourth quarter of 2019 and the third quarter of 2020, where the cash ratio exceeded 1.0 and even peaked at 1.53, indicating short periods of enhanced liquidity.
- Overall Analysis
- The data highlights a dynamic liquidity profile characterized by cycles of cash accumulation and reductions against a backdrop of increasing current liabilities. The decline in the cash ratio over the long term suggests a trade-off between maintaining liquidity and deploying cash resources, potentially for investments or other operational needs. Despite interim periods of strong liquidity, the downward trend in the cash ratio toward the end of the period signals a heightened liquidity risk that may warrant closer monitoring.