Use the attached Financial income Statement and Balance sheet for Stryker Corp. (SYK) 2019 (see page 2.) To do: Calculate the financial ratios below. Show all work (ratio computation) to get full credit in the space provided. Round answers to two decimal places. Label your answers appropriately to get credit percent in percent(.15573-15.57%), numbers (1.35) and dollars ($2.55). Ratio Computation (1pt) 2019 Ratio(.5pt) Stryker, Corp. Date Accessed:2/10/2020 www.sec.gov Financial Ratios Current ratio -CA/CL Quick Ratio (Cash+Marketable Securities Accts Receivable /CL Cash Ratio- Cash/CL Asset Turnover = Net Sales/Total Assets Inventory Turnover=Cost of goods sold/Inventory Accounts Receivable TurnoverNet Sales/Accounts receivable Fixed Asset turnover = Net Sales /Net fixed assets 11 Total Debt ratio=Total Assets-Total Common Equity/Total Assets Equity multiplier (EM) - Total Assets/Total common equity Times interest earned ratio-EBIT/Interest ROE (Return On Equity) - Net Income/Total Common Equity ROA (Return On Assets) = Net Income/Total Assets Operating Margin=Operating Income/Net Sales Profit Margin (PM) Net Income used to calculate basic earnings/Net Sales Check show: ROE = PM x Asset Turnover X EM / 14 15 16 17 18 19 Adj. Close Stock Price on Dec 31, 2020 (Go to www.finance.yahoo.com, click Historical Data) Basic Net Earnings per share (EPS) in 2019 Dividends per share (D) in 2019 Go to www.cnbc.com , PROFILE Price/Earnings ratio = Price per share/Basic Net Earnings per share Market value/Book value per share - Price Per Share/(Stockholder's equity/Basic Average shares Retention ratio (b) = (EPS-D)/EPS Internal growth rate (IGR)=(ROA+b)/((1-(ROA*b)) Sustainable growth rate (SGR)= (ROE*b/(1-(ROE*b)) 21 23 Dec. 31, Dec. 31, 2019 Dec. 31, 2019 2019 STRYKER Corp Consolidated Balance Sheets - USD ($) $ in Millions Current assets Cash and cash equivalents Marketable securities Accounts receivable, less allowance Inventories: 4337 88 2893 675 955 Stryker Corp (SYK) Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions Income Statement (Abstract] Net sales Cost of sales Gross profit Research, development and engineering expenses Selling general and administrative expenses Recall charges Amortization of intangible assets 14884 5188 9696 171 213 971 5356 192 Materials and supplies Work in process Finished goods 677 178 2427 Current liabilities Accounts payable Accrued compensation Income taxes Dividend payable Accrued expenses and other liabilities Current maturities of debt Total current liabilities Long-term debt, excluding current maturities Income taxes Other noncurrent liabilities Total liabilities Shareholders' equity Common stock, $0.10 par value Additional paid-in capital Retained earnings 1527 859 4400 3282 760 113601 4641 69831 2713 -151 2562 479 2083 10231) 1068 1661 17360 Total inventories Prepaid expenses and other current a Total current assets Property, plant and equipment: Land, buildings and improvements Machinery and equipment Total property, plant and equipment Less allowance for depreciation 1263 3451 4714 2147 1628 11748 5.571 Property, plant and equipment, net 2567 -606 Total operating expenses Operating income Other income (expense), net * Earnings before income taxes Income taxes Net earnings Net earnings per share of common stock: Basic net earnings per share of common stock (in dollars per share) Diluted net earnings per share of common stock (in dollars per share) Weighted average shares outstanding (in millions): Basic (in shares) Effect of dilutive employee stock compensation (in shares) Diluted in shares) Anti-dilutive shares excluded from the calculation of dilutive employee stock compensation *Note: Interest on debt 5.48 Goodwill 9069 Accumulated other comprehensive Total Strykers shareholders' equity Noncontrolling interest 12807 Other intangibles, net Noncurrent deferred income tax asse 374) 4227 1575 12807 Other noncurrent assets Total assets Total shareholders' equity Total liabilities & shareholders' equity 1369 301671 379.9 30167 1342 Use the attached Financial income Statement and Balance sheet for Stryker Corp. (SYK) 2019 (see page 2.) To do: Calculate the financial ratios below. Show all work (ratio computation) to get full credit in the space provided. Round answers to two decimal places. Label your answers appropriately to get credit percent in percent(.15573-15.57%), numbers (1.35) and dollars ($2.55). Ratio Computation (1pt) 2019 Ratio(.5pt) Stryker, Corp. Date Accessed:2/10/2020 www.sec.gov Financial Ratios Current ratio -CA/CL Quick Ratio (Cash+Marketable Securities Accts Receivable /CL Cash Ratio- Cash/CL Asset Turnover = Net Sales/Total Assets Inventory Turnover=Cost of goods sold/Inventory Accounts Receivable TurnoverNet Sales/Accounts receivable Fixed Asset turnover = Net Sales /Net fixed assets 11 Total Debt ratio=Total Assets-Total Common Equity/Total Assets Equity multiplier (EM) - Total Assets/Total common equity Times interest earned ratio-EBIT/Interest ROE (Return On Equity) - Net Income/Total Common Equity ROA (Return On Assets) = Net Income/Total Assets Operating Margin=Operating Income/Net Sales Profit Margin (PM) Net Income used to calculate basic earnings/Net Sales Check show: ROE = PM x Asset Turnover X EM / 14 15 16 17 18 19 Adj. Close Stock Price on Dec 31, 2020 (Go to www.finance.yahoo.com, click Historical Data) Basic Net Earnings per share (EPS) in 2019 Dividends per share (D) in 2019 Go to www.cnbc.com , PROFILE Price/Earnings ratio = Price per share/Basic Net Earnings per share Market value/Book value per share - Price Per Share/(Stockholder's equity/Basic Average shares Retention ratio (b) = (EPS-D)/EPS Internal growth rate (IGR)=(ROA+b)/((1-(ROA*b)) Sustainable growth rate (SGR)= (ROE*b/(1-(ROE*b)) 21 23 Dec. 31, Dec. 31, 2019 Dec. 31, 2019 2019 STRYKER Corp Consolidated Balance Sheets - USD ($) $ in Millions Current assets Cash and cash equivalents Marketable securities Accounts receivable, less allowance Inventories: 4337 88 2893 675 955 Stryker Corp (SYK) Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions Income Statement (Abstract] Net sales Cost of sales Gross profit Research, development and engineering expenses Selling general and administrative expenses Recall charges Amortization of intangible assets 14884 5188 9696 171 213 971 5356 192 Materials and supplies Work in process Finished goods 677 178 2427 Current liabilities Accounts payable Accrued compensation Income taxes Dividend payable Accrued expenses and other liabilities Current maturities of debt Total current liabilities Long-term debt, excluding current maturities Income taxes Other noncurrent liabilities Total liabilities Shareholders' equity Common stock, $0.10 par value Additional paid-in capital Retained earnings 1527 859 4400 3282 760 113601 4641 69831 2713 -151 2562 479 2083 10231) 1068 1661 17360 Total inventories Prepaid expenses and other current a Total current assets Property, plant and equipment: Land, buildings and improvements Machinery and equipment Total property, plant and equipment Less allowance for depreciation 1263 3451 4714 2147 1628 11748 5.571 Property, plant and equipment, net 2567 -606 Total operating expenses Operating income Other income (expense), net * Earnings before income taxes Income taxes Net earnings Net earnings per share of common stock: Basic net earnings per share of common stock (in dollars per share) Diluted net earnings per share of common stock (in dollars per share) Weighted average shares outstanding (in millions): Basic (in shares) Effect of dilutive employee stock compensation (in shares) Diluted in shares) Anti-dilutive shares excluded from the calculation of dilutive employee stock compensation *Note: Interest on debt 5.48 Goodwill 9069 Accumulated other comprehensive Total Strykers shareholders' equity Noncontrolling interest 12807 Other intangibles, net Noncurrent deferred income tax asse 374) 4227 1575 12807 Other noncurrent assets Total assets Total shareholders' equity Total liabilities & shareholders' equity 1369 301671 379.9 30167 1342
