Baxter International Inc (BAX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -112,000 | 390,000 | -549,000 | 779,000 | 603,000 |
| Total assets | US$ in thousands | 25,782,000 | 28,276,000 | 28,287,000 | 33,521,000 | 20,019,000 |
| Operating ROA | -0.43% | 1.38% | -1.94% | 2.32% | 3.01% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-112,000K ÷ $25,782,000K
= -0.43%
Operating ROA measures a company's ability to generate profits from its operational assets. Analyzing Baxter International Inc's Operating ROA over the past five years, we observe fluctuations in the metric.
- As of December 31, 2020, Baxter International Inc's Operating ROA stood at 3.01%, indicating the company generated $0.0301 in operating income for every dollar of assets employed in operations.
- By the end of December 31, 2021, the Operating ROA decreased to 2.32%, suggesting a decline in the company's efficiency in utilizing its operational assets to generate profits.
- The performance worsened significantly by December 31, 2022, where the Operating ROA turned negative at -1.94%. This implies that operational inefficiencies led to a negative return on assets, which could be a concerning sign for stakeholders.
- However, Baxter International Inc showed some recovery by December 31, 2023, with an Operating ROA of 1.38%. This uptick in performance indicates a slight improvement in the company's ability to generate profits from its operational assets.
- The trend reversed again by December 31, 2024, with a further decline in Operating ROA to -0.43%. This negative value suggests that Baxter International Inc faced challenges in efficiently utilizing its operational assets to generate positive returns.
Overall, Baxter International Inc's Operating ROA experienced fluctuations and periods of both positive and negative performance over the past five years, highlighting the importance of monitoring operational efficiency and asset utilization for sustainable profitability.
Peer comparison
Dec 31, 2024