Baxter International Inc (BAX)

Working capital 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
Revenue (ttm)	US$ in thousands	12,856,000	13,988,000	14,997,000	14,892,000	14,949,000	14,951,000	15,016,000	15,055,000	15,113,000	14,740,000	14,193,000	13,545,000	12,784,000	12,451,000	12,197,000	11,817,000	11,673,000	11,531,000	11,410,000	11,532,000
Total current assets	US$ in thousands	8,853,000	8,864,000	8,593,000	9,400,000	9,600,000	12,034,000	8,205,000	8,099,000	8,011,000	7,810,000	7,882,000	8,173,000	8,872,000	8,167,000	8,004,000	7,856,000	8,411,000	9,033,000	8,566,000	8,333,000
Total current liabilities	US$ in thousands	6,511,000	6,200,000	6,131,000	6,365,000	6,503,000	6,209,000	5,765,000	4,760,000	4,745,000	3,708,000	3,916,000	3,890,000	4,236,000	3,441,000	3,344,000	3,187,000	3,333,000	3,422,000	2,880,000	3,036,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,856,000K ÷ ($8,853,000K – $6,511,000K)
= 5.49

The working capital turnover ratio for Baxter International Inc shows the company's efficiency in utilizing its working capital to generate sales over a specific period. Looking at the trend from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio.

The working capital turnover ratio improved significantly from 2.18 on March 31, 2020, to 6.15 on June 30, 2023, which indicates a more efficient use of working capital to generate revenue during this period.

However, there was a notable decline in the ratio to 2.57 on September 30, 2023, suggesting a possible decrease in sales generated by the working capital employed.

The ratio improved again to 5.49 on December 31, 2024, indicating a resurgence in the company's ability to generate sales using its working capital effectively.

Overall, the fluctuating trend of the working capital turnover ratio for Baxter International Inc over the analyzed period may indicate varying efficiencies in managing working capital and generating sales. It is essential for the company to closely monitor and manage its working capital to ensure consistent and optimal performance in the future.