Baxter International Inc (BAX)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	1.37	3.48	3.57	3.13	3.70
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	1.93	4.78	4.63	2.76	2.30

Based on the activity ratios provided for Baxter International Inc, here is a detailed analysis:

1. Inventory Turnover:
- Baxter's inventory turnover ratio has shown some fluctuations over the years, ranging from 1.37 in 2024 to 3.70 in 2020. In 2024, the inventory turnover ratio declined significantly, indicating that the company's inventory was held for a longer period before being sold. This could be a sign of potential issues in inventory management, such as overstocking or slow-moving inventory.

2. Receivables Turnover:
- No data is available for the receivables turnover ratio for Baxter International Inc for the years provided. This could suggest that the company's accounts receivable turnover is not being calculated or reported, making it difficult to assess the efficiency of its collections process.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available for the years specified. Payables turnover ratio helps in evaluating how efficiently a company is managing its trade credit obligations with suppliers. The lack of this data limits the assessment of Baxter's payables management efficiency.

4. Working Capital Turnover:
- Baxter's working capital turnover has shown some variability over the years, with a high of 4.78 in 2023 and a low of 1.93 in 2024. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales. However, the dip in 2024 may indicate potential challenges in effectively utilizing its current assets to boost revenue.

In conclusion, while Baxter International Inc shows some level of efficiency in managing its inventory and working capital based on the turnover ratios provided, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity efficiency and working capital management.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	265.57	104.77	102.11	116.60	98.69
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data for Baxter International Inc, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand for Baxter International Inc has shown fluctuation over the years.
- The ratio increased from 98.69 days as of December 31, 2020, to 116.60 days as of December 31, 2021, which indicates that the company held inventory for a longer period in 2021.
- However, the Days of Inventory on Hand decreased to 102.11 days as of December 31, 2022, and slightly increased to 104.77 days as of December 31, 2023.
- Notably, there was a significant spike to 265.57 days as of December 31, 2024, which may suggest potential issues with managing inventory efficiently or changes in demand/supply dynamics.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding for Baxter International Inc. Consequently, it is not possible to assess the efficiency of the company in collecting receivables.

3. Number of Days of Payables:
- Similarly, the information on the Number of Days of Payables is not provided for Baxter International Inc, thereby limiting the ability to evaluate the company's payment practices and relationships with suppliers.

In conclusion, while the Days of Inventory on Hand ratio reflects fluctuations in inventory management efficiency for Baxter International Inc over the years, the absence of data on Days of Sales Outstanding and Number of Days of Payables restricts a comprehensive assessment of the company's overall working capital management and operational effectiveness.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	2.73	2.20	2.47
Total asset turnover	0.18	0.52	0.53	0.38	0.58

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales.

Analyzing Baxter International Inc's fixed asset turnover ratio over the years:
- In 2020, the ratio was 2.47, indicating that for every dollar invested in fixed assets, the company generated $2.47 in sales.
- The ratio decreased to 2.20 in 2021, suggesting a decline in the efficiency of utilizing fixed assets for revenue generation.
- There was an improvement in 2022, with the ratio increasing to 2.73, indicating better utilization of fixed assets.
- However, data was unavailable for 2023 and 2024, preventing a complete assessment for those years.

Additionally, the total asset turnover ratio provides insights into how effectively the company is using all its assets to generate revenue.
- The total asset turnover ratio for Baxter International Inc was 0.58 in 2020, meaning the company generated $0.58 in sales for every dollar invested in total assets.
- In 2021, the ratio declined to 0.38, indicating a decrease in the efficiency of asset utilization for revenue generation.
- There was a slight improvement in 2022 with the ratio increasing to 0.53, but in 2023 and 2024, the ratio decreased significantly to 0.52 and 0.18 respectively, suggesting a potential decline in operational efficiency in using all assets to generate sales.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for Baxter International Inc shows fluctuations over the years, reflecting changes in the company's efficiency in utilizing its assets to generate revenue.