Baxter International Inc (BAX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,513,000 | 14,813,000 | 15,113,000 | 12,784,000 | 11,673,000 |
| Total current assets | US$ in thousands | 8,853,000 | 9,600,000 | 8,011,000 | 8,872,000 | 8,411,000 |
| Total current liabilities | US$ in thousands | 6,511,000 | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 |
| Working capital turnover | 1.93 | 4.78 | 4.63 | 2.76 | 2.30 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,513,000K ÷ ($8,853,000K – $6,511,000K)
= 1.93
Baxter International Inc's working capital turnover has shown varying trends over the past five years.
In 2020, the working capital turnover ratio was 2.30, indicating that for each dollar of working capital, the company generated $2.30 of revenue during the year. The ratio then improved in 2021 to 2.76, suggesting enhanced efficiency in utilizing working capital to generate sales.
Subsequently, there was a significant increase in the working capital turnover ratio in 2022 to 4.63, indicating that the company was able to generate $4.63 of revenue for every dollar of working capital invested. This sharp increase could signify effective management of working capital leading to improved operational efficiency.
Furthermore, in 2023, Baxter International Inc's working capital turnover ratio continued to rise to 4.78, indicating sustained efficiency in utilizing working capital to drive sales growth.
However, there was a notable decline in the working capital turnover ratio in 2024 to 1.93, compared to the previous years. This decrease could suggest a potential inefficiency in utilizing working capital to generate revenue during that period.
Overall, Baxter International Inc's working capital turnover ratio has fluctuated over the years, with periods of improvement and a slight decline. It is essential for the company to closely monitor and manage its working capital to ensure optimal utilization and efficiency in generating revenue.
Peer comparison
Dec 31, 2024