Baxter International Inc (BAX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,812,000	9,838,000	9,716,000	7,679,000	7,086,000
Inventory	US$ in thousands	2,046,000	2,824,000	2,718,000	2,453,000	1,916,000
Inventory turnover		1.37	3.48	3.57	3.13	3.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,812,000K ÷ $2,046,000K
= 1.37

To analyze Baxter International Inc's inventory turnover, we can look at the trend over the past five years based on the provided data:

1. In December 31, 2020, the inventory turnover ratio was 3.70, indicating that Baxter International Inc turned over its inventory 3.70 times during the year.

2. By December 31, 2021, the inventory turnover ratio slightly decreased to 3.13, suggesting that the company's inventory turnover slowed down compared to the previous year.

3. The ratio increased to 3.57 by December 31, 2022, showing an improvement in inventory turnover efficiency.

4. In December 31, 2023, the inventory turnover ratio decreased to 3.48, indicating a slight decline compared to the previous year.

5. By December 31, 2024, the inventory turnover ratio significantly dropped to 1.37, signalling a substantial decrease in the rate at which Baxter International Inc was able to turn over its inventory.

In summary, Baxter International Inc's inventory turnover has fluctuated over the past five years, with a general trend of variability and a notable decrease in 2024. Further analysis and investigation would be needed to understand the reasons behind these fluctuations and whether they are reflective of operational challenges or strategic decisions within the company.