Baxter International Inc (BAX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,847,000 | 15,164,000 | 12,731,000 | 23,192,000 | 22,616,000 |
| Total current assets | US$ in thousands | 9,600,000 | 8,011,000 | 8,872,000 | 8,411,000 | 7,503,000 |
| Total current liabilities | US$ in thousands | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 | 3,230,000 |
| Working capital turnover | 4.79 | 4.64 | 2.75 | 4.57 | 5.29 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,847,000K ÷ ($9,600,000K – $6,503,000K)
= 4.79
The working capital turnover of Baxter International Inc. has shown an increasing trend over the past five years, from 2.66 in 2019 to 4.78 in 2023. This indicates that the company is more efficient in utilizing its working capital to generate revenue.
A working capital turnover ratio above 1 signifies that the company is effectively using its current assets to support its sales activities. Baxter's consistently high working capital turnover ratios suggest that the company is managing its working capital efficiently and effectively.
The significant improvement in the working capital turnover ratio over the years suggests that Baxter International Inc. has been able to streamline its operations and optimize its working capital management, which is a positive sign for the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023