Baxter International Inc (BAX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 390,000 | -2,243,000 | 1,710,000 | 1,616,000 | 1,772,000 |
| Total assets | US$ in thousands | 28,276,000 | 28,287,000 | 33,521,000 | 20,019,000 | 18,193,000 |
| Operating ROA | 1.38% | -7.93% | 5.10% | 8.07% | 9.74% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $390,000K ÷ $28,276,000K
= 1.38%
Baxter International Inc.'s operating return on assets (operating ROA) has exhibited a declining trend over the past five years, decreasing from 8.96% in 2019 to 1.28% in 2023. This indicates that the company's ability to generate operating income relative to its total assets has weakened over the period under review.
The diminishing operating ROA may suggest inefficiencies in Baxter International Inc.'s operations or a reduction in the profitability of its assets. This trend could be a cause for concern as it may signify challenges in effectively utilizing the company's assets to generate profits from its core business activities.
Investors and stakeholders may need to further investigate the factors contributing to this downward trend in operating ROA to assess the company's operational efficiency, profitability, and overall financial health. A comprehensive analysis considering other financial metrics and industry benchmarks would provide deeper insights into Baxter International Inc.'s performance and prospects.
Peer comparison
Dec 31, 2023