Baxter International Inc (BAX)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	5.49	5.25	6.09	4.91	4.83	2.57	6.15	4.51	4.63	3.59	3.58	3.16	2.76	2.63	2.62	2.53	2.30	2.06	2.01	2.18

Based on the provided data for Baxter International Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- Baxter's inventory turnover ratio fluctuated over the periods but generally remained between 3.13 and 4.14. This indicates that the company is effectively managing its inventory levels, with a moderate turnover rate.

2. Receivables Turnover:
- The receivables turnover ratio data is not available for any of the periods provided. Without this information, we cannot assess how quickly the company is collecting its receivables from customers.

3. Payables Turnover:
- Similar to receivables turnover, the payables turnover ratio data is not available for the periods provided. This makes it challenging to evaluate how efficiently Baxter is managing its accounts payable.

4. Working Capital Turnover:
- Baxter's working capital turnover ratio shows a varying trend, starting at 2.18 and peaking at 6.15 before stabilizing between 4.83 and 5.49. This suggests that the company is generating revenue efficiently relative to its working capital. A higher turnover indicates better utilization of working capital.

In conclusion, Baxter International Inc appears to manage its inventory efficiently, leveraging its working capital effectively to generate revenue. However, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	92.37	88.19	113.15	110.79	104.10	105.78	106.14	110.42	102.11	103.87	112.17	112.91	116.60	97.75	101.40	101.57	98.69	106.13	104.07	92.53
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Baxter International Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the average number of days it takes for the company to sell its inventory.
- Baxter's DOH has fluctuated over the years, with a range of approximately 88 to 116 days.
- A decrease in DOH suggests improved inventory management efficiency, while an increase may indicate slower sales or excess inventory levels.
- Notably, Baxter's DOH increased from 88.19 days in September 2024 to 92.37 days by December 2024.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the DSO data is not provided in the information, which limits our ability to analyze Baxter's collection efficiency.
- DSO measures how quickly the company collects its accounts receivable, and a lower DSO indicates faster collections.

3. Number of Days of Payables:
- Similarly, there is no data provided for the number of days of payables, making it challenging to assess Baxter's payment practices.
- A longer payables period may signify better cash flow management, while an overly extended period could indicate financial distress or strained supplier relationships.

In summary, while we can analyze Baxter's inventory turnover efficiency based on the DOH ratio, the lack of DSO and payables data restricts a comprehensive assessment of the company's overall liquidity and working capital management.

Long-term

	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
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
Total asset turnover	0.50	0.52	0.57	0.54	0.53	0.49	0.54	0.53	0.53	0.53	0.45	0.41	0.38	0.63	0.62	0.61	0.58	0.57	0.59	0.60

The Fixed Asset Turnover ratio for Baxter International Inc has shown variability over the years, ranging from 2.20 to 3.34. The ratio peaked in June 2023 at 3.34, indicating that the company generated $3.34 in revenue for every dollar invested in fixed assets at that time. However, it slightly decreased to 3.12 by September 2023. This ratio demonstrates the efficiency of the company in generating sales from its investment in fixed assets.

On the other hand, the Total Asset Turnover ratio fluctuated between 0.38 and 0.63 during the same period. The lowest value was recorded in December 2021 at 0.38, while the highest was observed in September 2021 at 0.63. This ratio signifies the company's ability to generate revenue in relation to its total assets.

Overall, the Fixed Asset Turnover ratio has generally been higher and more consistent compared to the Total Asset Turnover ratio, indicating that Baxter International Inc has been more efficient in utilizing its fixed assets to generate sales revenue than its total assets.