Baxter International Inc (BAX)

Inventory 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
Cost of revenue (ttm) US$ in thousands 15,888,000 15,894,000 18,405,000 17,889,000 18,000,000 17,497,000 13,585,000 12,714,000 11,536,000 7,891,000 7,667,000 7,400,000 7,227,000 6,400,000 6,252,000 6,322,000 6,198,000 9,230,000 9,238,000 9,167,000
Inventory US$ in thousands 2,824,000 2,873,000 2,897,000 2,922,000 2,679,000 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 1,653,000 1,715,000 1,756,000 1,743,000
Inventory turnover 5.63 5.53 6.35 6.12 6.72 6.54 5.10 4.99 4.70 3.90 3.71 3.67 3.77 3.22 3.28 3.73 3.75 5.38 5.26 5.26

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,888,000K ÷ $2,824,000K
= 5.63

The inventory turnover ratio for Baxter International Inc. has shown consistency over the past eight quarters, ranging from 3.23 to 3.57. This indicates that the company is efficiently managing its inventory levels and converting its inventory into sales.

The average inventory turnover ratio for the past eight quarters is approximately 3.41. This suggests that, on average, Baxter International Inc. is able to sell and replace its inventory approximately 3.41 times within a year.

A high inventory turnover ratio generally signifies effective inventory management, as it implies that the company is not holding excess inventory that could lead to potential obsolescence or storage costs. Baxter International Inc.'s consistently moderate to high inventory turnover ratio indicates good inventory control practices and efficient operations.

However, it's essential to compare Baxter International Inc.'s inventory turnover ratio with industry peers to gain a more comprehensive understanding of its performance relative to industry standards. A declining trend in the inventory turnover ratio over time may indicate potential inefficiencies in managing inventory levels and could warrant further investigation into the company's supply chain and demand forecasting processes.


Peer comparison

Dec 31, 2023

Dec 31, 2023


See also:

Baxter International Inc Inventory Turnover (Quarterly Data)