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A Look at Stryker’s Financial Performance

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Revenue trend

Stryker (SYK) generated net sales of $12.4 billion in fiscal 2017 compared with $11.3 billion in fiscal 2016. Its cost of sales increased from $3.8 billion in fiscal 2016 to $4.2 billion in fiscal 2017.

The gross profit generated by Stryker was $8.1 billion in fiscal 2017 compared with $7.4 billion in fiscal 2016.

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Operating expenses

Stryker’s research and development expenses in fiscal 2017 were $787 million compared with $715 million in fiscal 2016. It incurred selling, general, and administrative expenses of $4.5 billion in fiscal 2017 compared with $4.1 billion in fiscal 2016.

In fiscal 2017, the company’s total operating expenses were $5.8 billion, or 10% higher than $5.3 billion in fiscal 2016.

Stryker’s operating income grew at a slower pace, from $2.1 billion in fiscal 2016 to $2.2 billion in fiscal 2017.

The bottom line

Stryker incurred higher income taxes of $1 billion in fiscal 2017 compared with $274 million in fiscal 2016. As a result, despite strong operational performance, its net income declined from $1.6 billion in fiscal 2016 to $1 billion in fiscal 2016.

That resulted in its net earnings per share decreasing from $4.35 in fiscal 2016 to $2.68 in fiscal 2017.

As a result of the decline in net income, Stryker’s cash and equivalents available decreased to $2.7 billion in fiscal 2017 compared with $3.3 billion in fiscal 2016. Its total outstanding debt increased to $7.2 billion in fiscal 2017 compared with $6.9 billion in fiscal 2016.

It spent $230 million on share repurchases in fiscal 2017 compared with $13 million in fiscal 2016.

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