Analysis of Reportable Segments
Stryker Corp. operates in 2 segments: MedSurg and Neurotechnology and Orthopaedics and Spine.
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Segment Profit Margin
Stryker Corp., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine |
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).
- MedSurg and Neurotechnology Profit Margin
- The profit margin for the MedSurg and Neurotechnology segment demonstrates a consistent upward trend from 2020 to 2021. Starting at 27.19% in 2020, it increased to 28.93% in 2021 and further to 29.43% in 2022, indicating a steady improvement in profitability within this segment over the observed period.
- Orthopaedics and Spine Profit Margin
- The Orthopaedics and Spine segment exhibits more volatility. The profit margin peaked at 32.52% in 2020 but experienced a significant decline to 26.44% in 2021. However, it partially recovered to 28.8% in 2022. This pattern suggests sensitivity to operational or market conditions impacting profitability within this segment, with a notable dip followed by some recovery.
- Comparative Insights
- Comparing the two segments, MedSurg and Neurotechnology shows a stable and improving profit margin trend, reflecting potentially enhanced operational efficiency or favorable market conditions. In contrast, the Orthopaedics and Spine segment reveals greater fluctuations, with a sharp decline in 2021 followed by a partial rebound in 2022. Despite the decline, the margin in this segment remains higher than MedSurg and Neurotechnology through most of the observed period, except for the latest year where margins converge.
Segment Profit Margin: MedSurg and Neurotechnology
Stryker Corp.; MedSurg and Neurotechnology; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Segment operating income ÷ Net sales
= 100 × ÷ =
- Segment Operating Income
- The segment operating income shows a consistent upward trend over the three reported years. It increased from 2304 million USD in 2019 to 2414 million USD in 2020, followed by a more significant rise to 2807 million USD in 2021. This reflects steady growth in profitability within the segment over the period analyzed.
- Net Sales
- Net sales displayed some fluctuations during the reported years. In 2019, net sales were 8475 million USD, which slightly decreased to 8345 million USD in 2020. However, there was a notable recovery and growth in 2021 where net sales increased substantially to 9538 million USD. The rebound in 2021 suggests a strong recovery or expansion in sales activity following the dip in the previous year.
- Segment Profit Margin
- The segment profit margin percentages show a steady increase across the years. It rose from 27.19% in 2019 to 28.93% in 2020, and further improved to 29.43% in 2021. This progression indicates enhanced operational efficiency and profitability relative to sales within the segment.
Segment Profit Margin: Orthopaedics and Spine
Stryker Corp.; Orthopaedics and Spine; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Segment operating income ÷ Net sales
= 100 × ÷ =
- Segment Operating Income
- Segment operating income exhibited fluctuations during the observed period from 2019 to 2021. It decreased from $2,084 million in 2019 to $1,588 million in 2020, reflecting a significant decline. However, in 2021, operating income rebounded to $2,180 million, surpassing the 2019 level.
- Net Sales
- Net sales followed a somewhat similar pattern. Sales declined from $6,409 million in 2019 to $6,006 million in 2020, indicating a decrease in revenue. In 2021, net sales increased markedly to $7,570 million, reaching the highest value within the given timeframe.
- Segment Profit Margin
- The segment profit margin showed a downward trend from 2019 to 2020, dropping from 32.52% to 26.44%. This decrease in profitability percentage corresponded with the reductions in both operating income and net sales in 2020. In 2021, the profit margin partially recovered to 28.8%, indicating improved efficiency or profitability, though it remained below the 2019 level.
- Overall Trends and Insights
- Both financial performance indicators—operating income and net sales—experienced declines in 2020, likely reflecting external or operational challenges during that year. The subsequent recovery in 2021 across all measured dimensions suggests a strong rebound. Despite this recovery, the profit margin did not return to the 2019 peak, implying that while absolute profitability increased, costs or other factors might have impacted margin recovery.
Segment Return on Assets (Segment ROA)
Stryker Corp., ROA by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine |
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).
- MedSurg and Neurotechnology Segment ROA
-
The return on assets (ROA) for the MedSurg and Neurotechnology segment demonstrates a consistent upward trend over the reported periods. Starting at 14.16% in 2019, the ROA increased to 15.83% in 2020 and further improved to 18.45% in 2021. This progression reflects a positive trajectory in asset efficiency and profitability for the segment over the three-year span.
- Orthopaedics and Spine Segment ROA
-
The Orthopaedics and Spine segment exhibits a less consistent pattern in ROA performance. In 2019, the segment posted an ROA of 16.64%, which then experienced a significant decline to 8.78% in 2020. However, the segment rebounded to 12.01% in 2021, indicating partial recovery. Despite this improvement, the ROA in 2021 remains below the 2019 level, suggesting challenges in maintaining asset utilization and profitability during the period.
- Comparative Insights
-
Comparing the two segments reveals differing dynamics in asset returns. The MedSurg and Neurotechnology segment shows steady and substantial growth in ROA, implying enhanced operational effectiveness or favorable market conditions. Contrastingly, the Orthopaedics and Spine segment experiences volatility with a notable dip in 2020, possibly reflecting operational difficulties or external pressures during that year, followed by a partial recovery in 2021. The divergence in trajectories underscores varying segment-level performance and highlights areas for potential strategic focus.
Segment ROA: MedSurg and Neurotechnology
Stryker Corp.; MedSurg and Neurotechnology; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Segment operating income ÷ Assets
= 100 × ÷ =
The segment operating income for the MedSurg and Neurotechnology segment demonstrated a consistent upward trend over the observed periods. Starting from a value of 2304 million US dollars in 2019, it increased to 2414 million US dollars in 2020 and reached 2807 million US dollars in 2021. This progression indicates a robust increase in profitability within the segment over these years.
In terms of assets, there was a decline recorded after 2019. The assets decreased from 16,270 million US dollars in 2019 to 15,250 million US dollars in 2020, followed by a slight further reduction to 15,218 million US dollars in 2021. This marginal contraction in asset base over the timeframe suggests possibly improved asset utilization or divestitures within the segment.
Return on assets (ROA), reflecting the efficiency of asset use in generating operating income, showed a consistent improvement. The ROA rose from 14.16% in 2019 to 15.83% in 2020 and further to 18.45% in 2021. This upward movement in ROA, concurrent with declining total assets and increasing operating income, underscores enhanced operational efficiency and profitability within the segment.
Overall, the segment demonstrates a positive trajectory in profitability and operational efficiency despite a reduction in asset levels, indicating strategic improvements in managing resources and driving income growth.
Segment ROA: Orthopaedics and Spine
Stryker Corp.; Orthopaedics and Spine; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Segment operating income ÷ Assets
= 100 × ÷ =
- Segment Operating Income
- The segment operating income exhibits a fluctuating trend over the analyzed period. Starting from 2084 million US dollars at the end of 2019, it declined significantly to 1588 million in 2020, representing a decrease of approximately 23.78%. However, it rebounded in 2021, reaching 2180 million US dollars, surpassing the 2019 level and reflecting a recovery and growth.
- Assets
- There is a consistent growth in total assets held within the segment from 2019 through 2021. Assets increased from 12,527 million US dollars in 2019 to 18,090 million in 2020, a substantial rise of about 44.44%. This upward trend continued modestly in 2021, with assets reaching 18,149 million US dollars, indicating stabilization at a higher asset base.
- Segment Return on Assets (ROA)
- Segment ROA indicates a decreasing trend from 16.64% in 2019 to 8.78% in 2020, demonstrating a declining efficiency in generating profit from assets during that year. In 2021, ROA improved to 12.01%, signaling partial recovery in asset utilization but remaining below the 2019 level. The variation in ROA correlates with fluctuations in operating income and the significant increase in assets.
Segment Asset Turnover
Stryker Corp., asset turnover by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine |
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).
The annual reportable segment asset turnover data reveals distinct trends for the two segments over the examined periods.
- MedSurg and Neurotechnology
-
Data is available from the year ending 2020 onward. The asset turnover ratio exhibits a consistent upward trajectory, starting at 0.52 in 2020, increasing to 0.55 in 2021, and further rising to 0.63 in 2022. This trend indicates improving efficiency in the utilization of assets in generating revenue within this segment over these years.
- Orthopaedics and Spine
-
Similarly available from 2020, this segment shows fluctuation in asset turnover ratios. In 2020, the ratio was 0.51, followed by a notable decline to 0.33 in 2021. However, there is a recovery in 2022, with the ratio increasing to 0.42. This pattern suggests some volatility in asset turnover efficiency, with a dip that partially recovers afterward but does not reach the initial 2020 level within the observed timeframe.
Overall, the MedSurg and Neurotechnology segment demonstrates an improving trend in asset turnover ratios, reflecting increasingly effective asset utilization. In contrast, the Orthopaedics and Spine segment experiences a decrease and partial rebound, indicating variability and potential challenges in operational efficiency during these years.
Segment Asset Turnover: MedSurg and Neurotechnology
Stryker Corp.; MedSurg and Neurotechnology; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- The net sales figures show a fluctuating trend over the available periods. The sales volume decreased slightly from 8475 million US dollars in 2019 to 8345 million US dollars in 2020, indicating a minor decline. However, this was followed by a significant recovery in 2021, with net sales increasing to 9538 million US dollars. This suggests a strong rebound in revenue generation after the dip in 2020.
- Assets
- Asset values exhibited a declining trend during the observed interval. Assets decreased from 16,270 million US dollars in 2019 to 15,250 million US dollars in 2020, followed by a slight further decrease to 15,218 million US dollars in 2021. The reduction in asset base may indicate divestitures, depreciation, or other factors reducing the overall asset base during this period.
- Segment Asset Turnover
- The segment asset turnover ratio shows a progressive improvement over the timeline. It increased from 0.52 in 2019 to 0.55 in 2020, and further to 0.63 in 2021. This rising ratio reflects increased efficiency in the use of assets to generate sales, implying better operational performance and asset utilization in more recent years.
Segment Asset Turnover: Orthopaedics and Spine
Stryker Corp.; Orthopaedics and Spine; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- Net sales demonstrated a fluctuating trend over the reported periods. Beginning at 6,409 million US dollars, there was a decline to 6,006 million US dollars the following year. Subsequently, net sales increased significantly to 7,570 million US dollars, indicating a strong recovery and growth in the latter period.
- Assets
- Total assets showed a marked increase over the years under review. Assets rose from 12,527 million US dollars to 18,090 million US dollars, with a slight upward movement to 18,149 million US dollars in the final year. This growth suggests substantial asset expansion intended to support business operations or growth initiatives.
- Segment Asset Turnover
- The segment asset turnover ratio exhibited a downward trend initially, dropping sharply from 0.51 to 0.33. However, it recovered moderately to 0.42 in the last period. Despite the recovery, the ratio remained below its initial value, indicating less efficient use of assets to generate sales compared to the starting point.
Segment Capital Expenditures to Depreciation
Stryker Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine |
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).
- MedSurg and Neurotechnology Segment
-
The capital expenditures to depreciation ratio for this segment began at 0.58 in 2019, then declined to 0.39 in 2020, followed by a slight further decrease to 0.38 in 2021. This indicates a downward trend in capital investments relative to depreciation over the three-year period.
- Orthopaedics and Spine Segment
-
This segment showed a capital expenditures to depreciation ratio of 0.30 in 2019 with a marginal increase to 0.33 in 2020, followed by a decrease to 0.26 in 2021. The pattern suggests a small fluctuation initially but an overall decline in investment relative to depreciation by the end of the period.
- General Observations
-
Both reportable segments demonstrate a reduction in capital expenditures relative to depreciation from 2019 to 2021. The decline is more pronounced in the MedSurg and Neurotechnology segment compared to the Orthopaedics and Spine segment. This trend may imply a more conservative approach to capital investment or a shift in asset management strategy across both segments during this timeframe.
Segment Capital Expenditures to Depreciation: MedSurg and Neurotechnology
Stryker Corp.; MedSurg and Neurotechnology; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation and amortization
= ÷ =
The data reveals several financial trends for the MedSurg and Neurotechnology segment over the years 2017 through 2021, focusing on capital expenditures and depreciation metrics.
- Purchases of Property, Plant and Equipment (Capital Expenditures)
- Capital expenditure figures are absent for the years 2017 through 2019. However, beginning in 2020, there is a recorded investment of $281 million, which decreases to $192 million in 2021 and slightly rises to $197 million in 2022. This pattern suggests a peak in investments in 2020, followed by a downward adjustment in subsequent years, while maintaining a relatively stable level after the initial decline.
- Depreciation and Amortization
- Depreciation and amortization values are similarly missing for 2017 through 2019. From 2020 onward, the values show a gradual increase: $488 million in 2020, $496 million in 2021, and $518 million in 2022. This steady upward trend indicates an increasing expense allocation related to asset depreciation, potentially reflecting asset base growth or changes in depreciation policies.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio is not available for the years before 2020. Starting in 2020, the capital expenditures to depreciation ratio measures 0.58, strong relative capital investment compared to depreciation expenses. However, this ratio declines to 0.39 in 2021 and further to 0.38 in 2022, signaling a decreasing rate of capital investment relative to the depreciation expense. This decline may indicate a slowdown in new asset acquisition or replacement activity relative to the amortization of existing assets.
Overall, the segment shows a concentration of capital expenditure activity starting in 2020, followed by a moderate reduction while depreciation expenses steadily increase. The falling capital expenditures to depreciation ratio over the three years implies the segment is experiencing a phase of slower asset accumulation in comparison to asset aging or usage reflected in depreciation.
Segment Capital Expenditures to Depreciation: Orthopaedics and Spine
Stryker Corp.; Orthopaedics and Spine; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation and amortization
= ÷ =
- Purchases of Property, Plant and Equipment
- The segment shows a consistent increase in capital investments over the observed period, with expenditures rising from 138 million US dollars in 2019 to 165 million US dollars by the end of 2021.
- Depreciation and Amortization
- Depreciation and amortization expenses remained relatively stable between 2019 and 2020, with values of 457 million and 458 million US dollars respectively. However, there is a marked increase in 2021, reaching 629 million US dollars, indicating accelerated amortization or increased asset base.
- Segment Capital Expenditures to Depreciation Ratio
- Capital expenditures relative to depreciation have experienced a downward trend after a slight rise in 2020. The ratio climbed to 0.33 in 2020 but decreased to 0.26 in 2021, suggesting that although capital investments increased in absolute terms, they grew at a slower rate compared to depreciation expenses.
- Overall Trends and Insights
- The data reflects a segment with increasing investment in physical assets, as evidenced by the growth in property, plant and equipment purchases. The significant rise in depreciation and amortization in 2021 may reflect recent acquisitions becoming depreciable or amortizable assets, or accelerated write-downs. The decreasing ratio of capital expenditures to depreciation suggests the segment may be shifting towards replacing or maintaining assets rather than expanding its asset base aggressively.
Net sales
Stryker Corp., net sales by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine | |||||
| Total |
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).
The net sales data reveals trends for two main segments: MedSurg and Neurotechnology, and Orthopaedics and Spine, over three consecutive years from 2019 to 2021.
- MedSurg and Neurotechnology
- The segment demonstrated an upward trend overall. In 2019, net sales were recorded at 8,475 million US dollars. This figure slightly decreased to 8,345 million US dollars in 2020, representing a modest decline. However, in 2021, the segment experienced a notable recovery and growth, with net sales increasing substantially to 9,538 million US dollars, surpassing the initial 2019 level.
- Orthopaedics and Spine
- This segment showed more pronounced volatility. Net sales declined from 6,409 million US dollars in 2019 to 6,006 million in 2020, indicating a considerable contraction. Subsequently, in 2021, there was a significant rebound, with net sales rising to 7,570 million US dollars. This growth not only recovered the prior decline but also exceeded the 2019 reported figure by a substantial margin.
- Total Segment Net Sales
- The aggregate net sales of these segments followed a similar pattern. Total revenue decreased from 14,884 million US dollars in 2019 to 14,351 million in 2020, reflecting the individual segment declines. In 2021, total net sales increased markedly to 17,108 million US dollars, reflecting strong overall growth and recovery from the previous year's downturn.
Overall, the data indicates that both segments experienced a dip in net sales in 2020, followed by a robust recovery and growth in 2021. The increase in 2021 not only compensated for the prior year's decline but also resulted in higher sales than those seen in 2019. This suggests a strong rebound in market demand or effective strategic initiatives implemented to enhance sales performance in both segments.
Depreciation and amortization
Stryker Corp., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine | |||||
| Corporate and Other | |||||
| Total |
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).
- Trend Analysis of Depreciation and Amortization by Segment
-
The data for depreciation and amortization over the reported periods exhibit a clear upward trend across all major segments from 2019 through 2021.
- MedSurg and Neurotechnology Segment
-
This segment displays a consistent increase in depreciation and amortization expenses. Starting at 488 million US dollars in 2019, the value increased to 496 million in 2020, followed by a further rise to 518 million in 2021. The incremental increases suggest steady capital investment or asset base growth in this segment, with annual growth rates of approximately 1.6% between 2019 and 2020, and 4.4% between 2020 and 2021.
- Orthopaedics and Spine Segment
-
In this segment, depreciation and amortization expenses remained relatively stable between 2019 and 2020, with values of 457 million and 458 million US dollars respectively. However, a significant increase occurred in 2021, reaching 629 million, which represents a substantial jump of approximately 37.3%. This sharp rise may indicate considerable asset additions or revaluation in that year.
- Corporate and Other Segment
-
The depreciation and amortization figures in this segment increased steadily but more modestly, from 99 million in 2019 to 122 million in 2020, and then slightly to 125 million in 2021. These changes correspond to annual growth rates of approximately 23.2% between 2019 and 2020, followed by a much smaller increase of about 2.5% in the next year, indicating a possible stabilization of assets in this category.
- Total Depreciation and Amortization
-
The aggregated total depreciation and amortization amount grew from 1,044 million US dollars in 2019 to 1,076 million in 2020, and further to 1,272 million in 2021. The overall increase of 2.9% between 2019 and 2020 contrasts with a stronger growth of 18.2% from 2020 to 2021. This pattern aligns with individual segment trends, primarily influenced by the substantial growth in the Orthopaedics and Spine segment during 2021.
Segment operating income
Stryker Corp., segment operating income by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine | |||||
| Total |
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).
The data reveals the operating income trends for two defined segments over a three-year period from 2019 to 2021, with no values reported prior to 2019.
- MedSurg and Neurotechnology Segment
- This segment displays a consistent upward trajectory in operating income over the observed years. In 2019, the operating income was recorded at $2,304 million. It increased to $2,414 million in 2020, representing a growth of approximately 4.7%. The upward trend continued more strongly into 2021, reaching $2,807 million, an increase of about 16.4% from the previous year. This steady growth suggests this segment was an increasing contributor to overall profitability during this period.
- Orthopaedics and Spine Segment
- The operating income in this segment shows more variability. The income was $2,084 million in 2019 but declined sharply by approximately 23.8% to $1,588 million in 2020. Subsequently, there was a recovery in 2021, with operating income rising to $2,180 million, marking an increase of about 37.2% from 2020 and a slight improvement over the 2019 level. This suggests the segment experienced a significant disruption or challenge in 2020 but showed resilience and recovery in the following year.
- Total Operating Income
- The combined operating income from both segments mirrors the individual segment trends. Total operating income dropped from $4,388 million in 2019 to $4,002 million in 2020, a decline of around 8.8%. However, in 2021, total operating income rebounded strongly to $4,987 million, representing a rise of about 24.6% compared to 2020 and exceeding the 2019 level substantially. This overall pattern indicates that despite a setback in 2020, driven mainly by the Orthopaedics and Spine segment, the total operating income showed a robust recovery primarily supported by growth in both segments.
Assets
Stryker Corp., assets by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine | |||||
| Corporate and Other | |||||
| Total |
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).
The analysis of the annual reportable segment assets reveals several key trends between December 31, 2019, and December 31, 2021. Initially, data for the years 2017 and 2018 is not available, which limits the ability to identify longer-term trends.
- MedSurg and Neurotechnology
- The asset base in this segment exhibits a declining trend over the observed period. Assets decreased from US$16,270 million in 2019 to US$15,250 million in 2020, and further slightly declined to US$15,218 million in 2021. This represents a reduction of approximately 6.5% over the two years, indicating potential contraction or divestiture in this segment's assets.
- Orthopaedics and Spine
- In contrast, this segment shows a substantial increase in assets. From US$12,527 million in 2019, assets increased by over 44% to US$18,090 million in 2020, and marginally rose to US$18,149 million in 2021. The sizable growth in 2020, followed by stabilization in 2021, suggests significant investment or acquisition activity in the segment, contributing strongly to the company's overall asset growth.
- Corporate and Other
- This segment's assets experienced a decrease from US$1,370 million in 2019 to US$990 million in 2020, representing a reduction of about 28%. However, assets partially recovered to US$1,264 million in 2021. The fluctuation indicates variable corporate or miscellaneous asset levels, possibly due to restructuring, reallocation, or other non-operational activities.
- Total Assets
- The overall asset base grew from US$30,167 million in 2019 to US$34,330 million in 2020, an increase of approximately 13.8%. This growth continued at a slower rate to US$34,631 million in 2021, a further increase of around 0.9%. The total asset growth aligns closely with the increases in the Orthopaedics and Spine segment, which appears to be the primary driver of overall asset expansion during this period. The decline in MedSurg and Neurotechnology somewhat offsets this growth, while Corporate and Other’s partial recovery contributes slightly to the total.
Purchases of property, plant and equipment
Stryker Corp., purchases of property, plant and equipment by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| MedSurg and Neurotechnology | |||||
| Orthopaedics and Spine | |||||
| Corporate and Other | |||||
| Total |
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).
- Trend Analysis of Property, Plant, and Equipment Purchases
-
The data reveals purchase activities for property, plant, and equipment over the three-year period ending December 31, 2021. The analysis focuses on three segments alongside the total expenditures.
- MedSurg and Neurotechnology Segment
-
This segment demonstrated a notable decrease in purchases from 281 million USD in 2019 to 192 million USD in 2020. However, in 2021, a modest recovery was observed with purchases rising slightly to 197 million USD, indicating some stabilization after the prior decline.
- Orthopaedics and Spine Segment
-
Purchases in this segment exhibited a consistent upward trend throughout the period evaluated. Starting at 138 million USD in 2019, expenditure increased to 150 million USD in 2020 and further to 165 million USD in 2021. This steady growth indicates ongoing investment and expansion in this area.
- Corporate and Other Segment
-
Corporate and Other segment purchases experienced a significant decrease, dropping from 230 million USD in 2019 to 145 million USD in 2020. In 2021, purchases increased moderately to 163 million USD but remained below the 2019 level, suggesting a partial rebound but overall contraction compared to the earlier year.
- Total Purchases
-
Total expenditures decreased from 649 million USD in 2019 to 487 million USD in 2020, marking a substantial decline likely influenced by external or internal factors affecting capital allocation. The total amount increased slightly to 525 million USD in 2021, indicating some recovery yet still below the 2019 figure.
- Insights and Implications
-
The observed trends highlight varying investment dynamics across segments. The Orthopaedics and Spine segment shows continuous growth, potentially reflecting strategic priorities or market opportunities. Conversely, the MedSurg and Neurotechnology and Corporate and Other segments faced reductions in capital expenditures during 2020, with only modest rebounds in 2021. The overall reduction and partial recovery in total purchases suggest a cautious approach to capital spending, possibly in response to market conditions or operational adjustments.