What does debt-to-equity mean?

How much debt the company carries for every dollar of shareholder equity.

How do you interpret debt-to-equity?

Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.

How does debt-to-equity compare across companies?

Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.

Stryker SYK Debt-to-equity

Discontinued — last reported Q4 '18

Debt-to-equity at other companies

Johnson & JohnsonJNJ

0.7×0.0×

Boston ScientificBSX

0×-0.5×

Intuitive SurgicalISRG

0×0.0×

Zimmer Biomet HoldingsZBH

0.6×0.0×

MedtronicMDT

0.6×0.0×

STERISSTE

0.3×-0.1×

Other financials

Income statement

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Revenue$6.0B+2.6%

Gross profit$3.8B+1.8%

Operating income$936.0M+11.8%

Net income$745.0M+13.9%

EPS (diluted)$1.93+14.2%

Balance sheet

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Cash & equivalents$2.9B+24.1%

Total debt$14.4B-15.1%

Total assets$46.3B+0.6%

Cash flow

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Operating cash flow$581.0M+132%

CapEx$166.0M+35.0%

Free cash flow$415.0M+227%

Valuation

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Market cap$115.45B-11.4%

Enterprise value$126.95B-12.4%

P/E34.6×-11.0×

P/S4.6×-1.0×

Profitability

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Gross margin63.8%-0.1pp

Operating margin19.7%+4.4pp

Net margin13.2%+0.9pp

Returns & leverage

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Return on equity32.8%—

Current ratio2.1×+0.5×

Where this comes from

Calculated from Stryker’s reported figures.

total debt/total stockholders equity=0.8×

Based on the most recent quarter.

The official record: Stryker’s 10-K, filed February 6, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does debt-to-equity mean?: How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?: Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?: Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.