Baxter International Inc (BAX)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	12,856,000	13,988,000	14,997,000	14,892,000	14,949,000	14,951,000	15,016,000	15,055,000	15,113,000	14,740,000	14,193,000	13,545,000	12,784,000	12,451,000	12,197,000	11,817,000	11,673,000	11,531,000	11,410,000	11,532,000
Property, plant and equipment	US$ in thousands	—	—	—	—	—	4,797,000	4,494,000	5,000,000	5,529,000	4,799,000	4,976,000	5,114,000	5,808,000	5,163,000	5,216,000	5,181,000	4,722,000	4,460,000	4,382,000	4,340,000
Fixed asset turnover		—	—	—	—	—	3.12	3.34	3.01	2.73	3.07	2.85	2.65	2.20	2.41	2.34	2.28	2.47	2.59	2.60	2.66

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,856,000K ÷ $—K
= —

The fixed asset turnover ratio of Baxter International Inc has shown a fluctuating trend over the past few years. The ratio was 2.66 as of March 31, 2020, indicating that the company generated $2.66 in sales for every $1 worth of fixed assets. The ratio decreased slightly to 2.60 by June 30, 2020, and continued to decline gradually to 2.20 by December 31, 2021. This suggests that the efficiency of utilizing fixed assets to generate revenue was diminishing during this period.

However, there was an improvement in the fixed asset turnover ratio in the following quarters. The ratio increased to 3.34 as of June 30, 2023, indicating that Baxter International was generating more sales per dollar of fixed assets invested. This improvement continued, reaching a peak of 3.12 as of September 30, 2023.

The data for the subsequent periods, from December 31, 2023, to December 31, 2024, is not available (represented by dashes), making it challenging to assess the trend accurately. Overall, the increasing trend in the fixed asset turnover ratio from mid-2022 to mid-2023 suggests that Baxter International may have implemented strategies to improve the efficiency of its fixed asset utilization. It would be important to monitor future financial reports to understand the sustainability of this positive trend.