Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Stryker Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Stryker Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Stryker Corp. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Stryker Corp. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Stryker Corp. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Stryker Corp. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Gross Profit Margin
Stryker Corp., gross profit margin 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) | ||||||
| Gross profit | 10,968) | 9,057) | 9,696) | 8,938) | 8,173) | |
| Net sales | 17,108) | 14,351) | 14,884) | 13,601) | 12,444) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 64.11% | 63.11% | 65.14% | 65.72% | 65.68% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 52.21% | 50.49% | 52.46% | — | — | |
| Cigna Group | 12.41% | 14.43% | 15.57% | — | — | |
| CVS Health Corp. | 17.48% | 18.01% | 17.41% | — | — | |
| Elevance Health Inc. | 17.09% | 19.71% | 18.77% | — | — | |
| Intuitive Surgical Inc. | 69.32% | 65.65% | 69.45% | — | — | |
| Medtronic PLC | 65.19% | 67.41% | 70.04% | — | — | |
| UnitedHealth Group Inc. | 23.60% | 25.62% | 23.19% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,968 ÷ 17,108 = 64.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Stryker Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Profit Margin
Stryker Corp., operating profit margin 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) | ||||||
| Operating income | 2,584) | 2,223) | 2,713) | 2,537) | 2,290) | |
| Net sales | 17,108) | 14,351) | 14,884) | 13,601) | 12,444) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 15.10% | 15.49% | 18.23% | 18.65% | 18.40% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 19.56% | 15.48% | 14.21% | — | — | |
| Cigna Group | 4.60% | 5.12% | 5.31% | — | — | |
| CVS Health Corp. | 4.54% | 5.19% | 4.69% | — | — | |
| Elevance Health Inc. | 5.15% | 4.97% | 5.49% | — | — | |
| Humana Inc. | 3.80% | 6.56% | 4.96% | — | — | |
| Intuitive Surgical Inc. | 31.89% | 24.09% | 30.69% | — | — | |
| Medtronic PLC | 14.89% | 16.57% | 20.51% | — | — | |
| UnitedHealth Group Inc. | 8.40% | 8.76% | 8.19% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.69% | 7.04% | 6.89% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 13.07% | 10.36% | 12.35% | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 2,584 ÷ 17,108 = 15.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Stryker Corp. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
Stryker Corp., net profit margin 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) | |
| Net sales | 17,108) | 14,351) | 14,884) | 13,601) | 12,444) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 11.66% | 11.14% | 13.99% | 26.12% | 8.20% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 16.42% | 12.99% | 11.56% | — | — | |
| Cigna Group | 3.11% | 5.31% | 3.35% | — | — | |
| CVS Health Corp. | 2.72% | 2.68% | 2.59% | — | — | |
| Elevance Health Inc. | 4.46% | 3.78% | 4.66% | — | — | |
| Humana Inc. | 3.54% | 4.43% | 4.20% | — | — | |
| Intuitive Surgical Inc. | 29.85% | 24.33% | 30.80% | — | — | |
| Medtronic PLC | 11.97% | 16.56% | 15.16% | — | — | |
| UnitedHealth Group Inc. | 6.06% | 6.03% | 5.76% | — | — | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 4.96% | 5.21% | 4.85% | — | — | |
| Net Profit Margin, Industry | ||||||
| Health Care | 10.82% | 7.69% | 10.13% | — | — | |
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
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 1,994 ÷ 17,108 = 11.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Stryker Corp. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Equity (ROE)
Stryker Corp., ROE 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) | |
| Total Stryker shareholders’ equity | 14,877) | 13,084) | 12,807) | 11,730) | 9,966) | |
| Profitability Ratio | ||||||
| ROE1 | 13.40% | 12.22% | 16.26% | 30.29% | 10.23% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 19.75% | 13.71% | 11.86% | — | — | |
| Cigna Group | 11.39% | 16.81% | 11.26% | — | — | |
| CVS Health Corp. | 10.54% | 10.35% | 10.39% | — | — | |
| Elevance Health Inc. | 16.93% | 13.77% | 15.15% | — | — | |
| Humana Inc. | 18.24% | 24.53% | 22.49% | — | — | |
| Intuitive Surgical Inc. | 14.32% | 10.90% | 16.69% | — | — | |
| Medtronic PLC | 7.01% | 9.44% | 9.25% | — | — | |
| UnitedHealth Group Inc. | 24.09% | 23.52% | 24.02% | — | — | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 15.06% | 15.16% | 14.26% | — | — | |
| ROE, Industry | ||||||
| Health Care | 22.87% | 16.00% | 21.03% | — | — | |
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
ROE = 100 × Net earnings ÷ Total Stryker shareholders’ equity
= 100 × 1,994 ÷ 14,877 = 13.40%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Stryker Corp. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Assets (ROA)
Stryker Corp., ROA 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) | |
| Total assets | 34,631) | 34,330) | 30,167) | 27,229) | 22,197) | |
| Profitability Ratio | ||||||
| ROA1 | 5.76% | 4.66% | 6.90% | 13.05% | 4.60% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 9.40% | 6.20% | 5.43% | — | — | |
| Cigna Group | 3.46% | 5.44% | 3.28% | — | — | |
| CVS Health Corp. | 3.39% | 3.11% | 2.98% | — | — | |
| Elevance Health Inc. | 6.26% | 5.28% | 6.21% | — | — | |
| Humana Inc. | 6.61% | 9.63% | 9.31% | — | — | |
| Intuitive Surgical Inc. | 12.58% | 9.50% | 14.17% | — | — | |
| Medtronic PLC | 3.87% | 5.28% | 5.16% | — | — | |
| UnitedHealth Group Inc. | 8.15% | 7.81% | 7.96% | — | — | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 5.63% | 5.61% | 5.18% | — | — | |
| ROA, Industry | ||||||
| Health Care | 8.19% | 5.42% | 7.18% | — | — | |
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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,994 ÷ 34,631 = 5.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Stryker Corp. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |