Baxter International Inc (BAX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,085,000 | 8,704,000 | 9,629,000 | 9,844,000 | 9,902,000 | 9,913,000 | 9,962,000 | 9,659,000 | 9,716,000 | 9,400,000 | 8,665,000 | 8,237,000 | 7,679,000 | 7,561,000 | 7,433,000 | 7,248,000 | 7,086,000 | 6,837,000 | 6,681,000 | 6,682,000 |
| Inventory | US$ in thousands | 2,046,000 | 2,103,000 | 2,985,000 | 2,988,000 | 2,824,000 | 2,873,000 | 2,897,000 | 2,922,000 | 2,718,000 | 2,675,000 | 2,663,000 | 2,548,000 | 2,453,000 | 2,025,000 | 2,065,000 | 2,017,000 | 1,916,000 | 1,988,000 | 1,905,000 | 1,694,000 |
| Inventory turnover | 3.95 | 4.14 | 3.23 | 3.29 | 3.51 | 3.45 | 3.44 | 3.31 | 3.57 | 3.51 | 3.25 | 3.23 | 3.13 | 3.73 | 3.60 | 3.59 | 3.70 | 3.44 | 3.51 | 3.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,085,000K ÷ $2,046,000K
= 3.95
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Baxter International Inc, the inventory turnover has fluctuated over the period provided.
The inventory turnover ratio for Baxter International Inc ranged from a low of 3.13 in December 31, 2021, to a high of 4.14 in September 30, 2024. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly and efficiently.
Overall, Baxter International Inc's inventory turnover ratio has shown some variability, but it has stayed relatively stable around the range of 3.20 to 4.10 over the period. This suggests that the company is effectively managing its inventory levels to meet customer demand while avoiding excess or obsolete inventory.
It is important for Baxter International Inc to continue monitoring its inventory turnover ratio to ensure optimal inventory management practices and to maintain a balance between having enough inventory to meet demand and avoiding overstock situations.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Baxter International Inc Inventory Turnover (Quarterly Data)