Baxter International Inc (BAX)

Fixed asset turnover

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 14,920,000 14,899,000 14,958,000 15,052,000 15,164,000 14,775,000 14,223,000 13,534,000 12,731,000 12,327,000 12,064,000 11,659,000 11,491,000 11,459,000 11,330,000 11,475,000 11,340,000 11,142,000 11,110,000 11,118,000
Property, plant and equipment US$ in thousands 4,433,000 4,278,000 4,494,000 5,000,000 4,695,000 4,799,000 4,976,000 5,114,000 5,178,000 4,582,000 4,649,000 4,614,000 4,722,000 4,460,000 4,382,000 4,340,000 4,512,000 4,406,000 4,485,000 4,476,000
Fixed asset turnover 3.37 3.48 3.33 3.01 3.23 3.08 2.86 2.65 2.46 2.69 2.59 2.53 2.43 2.57 2.59 2.64 2.51 2.53 2.48 2.48

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,920,000K ÷ $4,433,000K
= 3.37

Baxter International Inc.'s fixed asset turnover ratio over the past eight quarters has shown some variation, ranging from 2.65 to 3.49. This ratio measures the company's ability to generate revenue from its investment in fixed assets, with a higher ratio indicating more efficient utilization of fixed assets to generate sales.

The trend in fixed asset turnover for Baxter International Inc. has been relatively stable, with fluctuations within a reasonable range. Q3 2023 had the highest fixed asset turnover at 3.49, indicating that the company was able to generate $3.49 in revenue for every dollar invested in fixed assets during that quarter. On the other hand, Q1 2022 had the lowest ratio at 2.65, suggesting a lower efficiency in utilizing fixed assets to generate revenue.

Overall, the company's fixed asset turnover ratios suggest that Baxter International Inc. has been effectively managing its fixed assets to generate sales, with the ratios consistently above 3. This indicates a relatively efficient use of fixed assets in generating revenue over the analyzed period.


Peer comparison

Dec 31, 2023


See also:

Baxter International Inc Net Fixed Asset Turnover (Quarterly Data)