Baxter International Inc (BAX)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	447,000	708,000	-2,121,000	-1,840,000	-1,863,000	-2,070,000	1,323,000	1,483,000	1,710,000	1,733,000	1,690,000	1,597,000	1,616,000	1,746,000	1,779,000	1,798,000	1,772,000	1,627,000	1,506,000	1,533,000
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
Operating profit margin		3.00%	4.75%	-14.18%	-12.22%	-12.29%	-14.01%	9.30%	10.96%	13.43%	14.06%	14.01%	13.70%	14.06%	15.24%	15.70%	15.67%	15.63%	14.60%	13.56%	13.79%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $447,000K ÷ $14,920,000K
= 3.00%

Baxter International Inc.'s operating profit margin has exhibited fluctuations over the past eight quarters. In Q1 2022 and Q2 2022, the company showcased strong operating efficiency with margins of 10.78% and 9.65%, respectively. However, there was a notable decline in Q3 2022 to 6.05%, followed by a slight improvement to 5.99% in Q4 2022.

The trend continued into 2023, with further decreases in operating profit margins. Q1 2023 saw a significant drop to 6.19%, followed by 3.90% in Q2 2023 and 3.34% in Q3 2023. The most recent data for Q4 2023 reflects a continued decline with a margin of 2.44%.

Overall, Baxter International Inc.'s operating profit margin has shown a downward trajectory, indicating potential challenges in maintaining profitability and controlling operational costs. It is important for the company to address the factors contributing to these margin reductions and implement strategies to improve operational efficiency in order to sustain profitability in the future.