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.