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Stryker (NYSE:SYK) Net-Net Working Capital

: $-36.41 (As of Jun. 2023)
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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Stryker's Net-Net Working Capital for the quarter that ended in Jun. 2023 was $-36.41.

The industry rank for Stryker's Net-Net Working Capital or its related term are showing as below:

SYK's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 6.73
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Stryker Net-Net Working Capital Historical Data

The historical data trend for Stryker's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stryker Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Net-Net Working Capital
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -22.90 -24.77 -38.42 -33.94 -36.09

Stryker Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Net-Net Working Capital Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -39.64 -36.35 -36.09 -35.83 -36.41
Competitive Comparison

For the Medical Devices subindustry, Stryker's Net-Net Working Capital, along with its competitors' market caps and Net-Net Working Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   
Stryker Net-Net Working Capital Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Stryker's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Stryker's Net-Net Working Capital falls in comparison to its industry or sector. The grey bar indicates the Net-Net Working Capital's extreme value range as defined by GuruFocus.


Stryker Net-Net Working Capital Calculation

Stryker's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2022 is calculated as

Net-Net Working Capital(A: Dec. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1928+0.75 * 3565+0.5 * 3995-20268
-0-0)/378.7
=-36.09

Stryker's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2023 is calculated as

Net-Net Working Capital(Q: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1478+0.75 * 3261+0.5 * 4593-20048
-0-0)/379.778
=-36.41

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Stryker  (NYSE:SYK) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Stryker Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Stryker's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Stryker (NYSE:SYK) Business Description

Stryker logo
Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Stryker Corp (NYSE:SYK) » Definitions » Net-Net Working Capital
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Traded in Other Exchanges
SYK:Mexico SYK:Germany S1YK34:Brazil SYK:Austria
Address
2825 Airview Boulevard, Kalamazoo, MI, USA, 49002
Website
https://www.stryker.com
Stryker designs, manufactures, and markets an array of medical equipment, instruments, consumable supplies, and implantable devices. The product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds and gurneys, and spinal devices. Stryker remains one of the three largest competitors in reconstructive orthopedic implants and holds the leadership position in operating room equipment. Just over one fourth of Stryker's total revenue currently comes from outside the United States.
Executives
James Andrew Pierce officer: Group President 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Spencer S Stiles officer: Group President 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Giovanni Caforio director BRISTOL-MYERS SQUIBB COMPANY, ROUTE 206 & PROVINCELINE ROAD, LAWRENCEVILLE NJ 08543
Skeete Tatum Lisa M director 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Robert S Fletcher officer: VP, Chief Legal Officer 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Viju Menon officer: Group President 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Sherilyn S Mccoy director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Rajeev Suri director 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Mary K Brainerd director 8170 33RD AVENUE SOUTH, BLOOMINGTON MN 55425
Graham A Mclean officer: President, Asia-Pacific 1 CORPORATE AVENUE ROWVILLE, VICTORIA C3 3178
Glenn S Boehnlein officer: Vice President, CFO 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
M Kathryn Fink officer: VP, Global Human Resources 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Yin C Becker officer: VP, Comm. & Public Affairs 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Bijoy Sagar officer: VP, Chief Information Officer 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Michael Damon Hutchinson officer: General Counsel 2825 AIRVIEW BLVD, KALAMAZOO MI 49002