Baxter International Inc (BAX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.51% | 33.41% | 40.10% | 19.78% | 21.05% |
| Operating profit margin | 2.63% | -14.79% | 13.43% | 6.97% | 7.84% |
| Pretax margin | 17.66% | -15.60% | 11.52% | 5.54% | 4.24% |
| Net profit margin | 17.89% | -16.04% | 10.09% | 4.75% | 4.43% |
Baxter International Inc.'s profitability ratios exhibit fluctuations over the past five years. The gross profit margin has experienced a declining trend, where it decreased from 41.90% in 2019 to 33.59% in 2023. This suggests that the company's cost of goods sold relative to its revenue has been increasing, impacting its gross profitability.
The operating profit margin also shows a decreasing trend, dropping from 14.35% in 2019 to 2.44% in 2023. This decline suggests that Baxter International Inc. has been facing challenges in managing its operating expenses relative to its revenue, resulting in lower profitability from its core operations.
The pretax margin has been volatile, with a negative value of -0.79% in 2023, a drastic improvement from -15.57% in 2022. However, in the preceding years, pretax margin figures were positive, peaking at 11.47% in 2021. This indicates fluctuations in the company's ability to generate profits before accounting for taxes.
On the other hand, Baxter International Inc.'s net profit margin has been inconsistent, with negative values in 2022 and 2019 but positive figures in 2023, 2021, and 2020. The net profit margin improved notably in 2023 to 17.93%, a significant recovery from the negative figure of -16.10% in 2022. This suggests variability in the company's bottom-line profitability after accounting for all expenses.
Overall, Baxter International Inc. has experienced fluctuations in its profitability ratios over the past five years, with varying levels of profitability across different periods. Investors and stakeholders may want to further analyze the company's financial performance to assess the factors driving these fluctuations and their implications for future profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.38% | -7.93% | 5.10% | 8.07% | 9.74% |
| Return on assets (ROA) | 9.39% | -8.60% | 3.83% | 5.50% | 5.50% |
| Return on total capital | 37.30% | -33.43% | 18.42% | 16.54% | 13.59% |
| Return on equity (ROE) | 31.61% | -41.71% | 14.15% | 12.68% | 12.70% |
Baxter International Inc.'s profitability ratios show varying trends over the past five years.
1. Operating return on assets (Operating ROA) has been declining steadily from 8.96% in 2019 to 1.28% in 2023. This indicates that the company's operating income generated from its assets has been decreasing over time.
2. Return on assets (ROA) was negative in 2022 at -8.60%, but has improved to 9.39% in 2023. Despite the negative ROA in 2022, the company has managed to turn this around and generate a positive return on its total assets.
3. Return on total capital has also shown a downward trend, starting at 13.39% in 2019 and declining to 1.63% in 2023. This suggests that the company's ability to generate returns on its total invested capital has weakened over the years.
4. Return on equity (ROE) has fluctuated over the years, with a significant drop to -41.71% in 2022, but rebounding to 31.61% in 2023. This highlights the company's ability to generate profits from shareholders' equity, with recent improvements indicating a positive trend.
In summary, Baxter International Inc.'s profitability ratios reflect a mixed performance, with some ratios showing improvements while others display declining trends. These fluctuations may indicate changes in the company's operational efficiency and overall financial health over the analyzed period.