Baxter International Inc (BAX)

Working capital 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
Revenue (ttm)	US$ in thousands	14,920,000	14,899,000	14,958,000	15,052,000	15,164,000	14,775,000	14,223,000	13,534,000	12,731,000	12,327,000	12,064,000	11,659,000	11,491,000	11,459,000	11,330,000	11,475,000	11,340,000	11,142,000	11,110,000	11,118,000
Total current assets	US$ in thousands	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	7,503,000	7,210,000	7,229,000	6,060,000
Total current liabilities	US$ in thousands	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	3,230,000	2,611,000	2,557,000	3,276,000
Working capital turnover		4.82	2.56	6.13	4.51	4.64	3.60	3.59	3.16	2.75	2.61	2.59	2.50	2.26	2.04	1.99	2.17	2.65	2.42	2.38	3.99

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,920,000K ÷ ($9,600,000K – $6,503,000K)
= 4.82

The working capital turnover for Baxter International Inc. has varied over the quarters provided. In Q2 2023, the company achieved the highest working capital turnover of 6.15, indicating that it generated $6.15 in revenue for every dollar of working capital invested during that period. This suggests that Baxter International Inc. efficiently utilized its working capital to generate sales.

Q1 2023 and Q4 2023 also demonstrated strong working capital turnover ratios of 4.51 and 4.78, respectively, indicating that the company was able to efficiently convert its working capital into revenue during those quarters.

On the other hand, Q3 2023 showed a lower working capital turnover ratio of 2.57, suggesting a temporary decrease in efficiency in utilizing working capital to generate sales.

Overall, Baxter International Inc. has shown a consistent ability to efficiently manage its working capital to drive revenue generation. Investors and stakeholders may view these results positively as they indicate effective utilization of resources to generate sales.