Revenue flow

Margins

Stage	SYK	% of rev	ZBH	% of rev	Gap · A − B
Revenue	$6.5B	100.00%	$2.1B	100.00%	SYK ×3.16
Gross profit	$4.2B	65.15%	$1.5B	71.18%	ZBH +6.0pp
Operating income	$1.0B	15.86%	$308M	14.91%	SYK +0.9pp
Pre-tax income	$997M	15.29%	$230M	11.15%	SYK +4.1pp
Net income	$753M	11.55%	$192M	9.29%	SYK +2.3pp

Stage	SYK	ZBH	Gap · A − B
Revenue	$6.5B100.00%	$2.1B100.00%	SYK ×3.16
Gross profit	65.15%$4.2B	71.18%$1.5B	ZBH +6.0pp
Operating income	15.86%$1.0B	14.91%$308M	SYK +0.9pp
Pre-tax income	15.29%$997M	11.15%$230M	SYK +4.1pp
Net income