Baxter International Inc (BAX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,847,000 | 15,164,000 | 12,731,000 | 23,192,000 | 22,616,000 |
| Property, plant and equipment | US$ in thousands | 4,433,000 | 4,695,000 | 5,178,000 | 4,722,000 | 4,512,000 |
| Fixed asset turnover | 3.35 | 3.23 | 2.46 | 4.91 | 5.01 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,847,000K ÷ $4,433,000K
= 3.35
The fixed asset turnover ratio for Baxter International Inc. has shown a positive trend over the past five years, indicating the company's ability to efficiently generate revenue using its fixed assets. The ratio increased from 2.52 in 2019 to 3.34 in 2023, suggesting that Baxter has improved its utilization of fixed assets to generate sales.
The consistent improvement in the fixed asset turnover ratio reflects operational efficiency and effective management of fixed assets by Baxter. This implies that the company has been able to drive revenue growth without significantly increasing its investment in fixed assets, which is a positive indicator of financial performance.
Overall, the increasing trend in Baxter's fixed asset turnover ratio demonstrates the company's ability to optimize its asset base efficiently, which can lead to improved profitability and shareholder value in the long term.
Peer comparison
Dec 31, 2023