A critical analysis of Smith & Nephew plc’s shareholder wealth creation in the five-year period from 2018 to 2022

Abstract

Smith & Nephew plc, a prominent participant in the global medical devices and services industry, has undergone a significant transformation over the past five years, from 2018 to 2022. Numerous internal and external factors have contributed to significant financial fluctuations during this period. In this critical analysis, we will examine Smith & Nephew's strategies, financial performance, and the influence of these factors on the creation of shareholder wealth during this crucial period. Our analysis will encompass a vast array of factors, including stock price fluctuations, profitability metrics, debt levels, liquidity, dividend policies, and strategic acquisitions. Each of these factors is instrumental in determining the company's financial health and, consequently, its ability to pay dividends. As we dissect the complexities of Smith & Nephew's financial decisions and market dynamics, our objective is to provide a thorough comprehension of how shareholder wealth evolved in response to these factors. This analysis is not only a retrospective examination of financial data but also a prospective evaluation of the company's resilience, adaptability, and strategic prowess. It emphasises the crucial relationship between financial performance and shareholder value, casting light on the strategies employed by Smith & Nephew to navigate challenges, seize opportunities, and ultimately deliver enduring returns to their shareholders