Baxter International Inc (BAX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -140,000 | 624,000 | 418,000 | 593,000 | 129,000 | -166,000 | -184,000 | 173,000 | 468,000 | 817,000 | 1,399,000 | 1,483,000 | 1,710,000 | 1,733,000 | 1,690,000 | 1,597,000 | 1,616,000 | 1,746,000 | 1,735,000 | 1,759,000 |
| Total assets | US$ in thousands | 25,782,000 | 26,676,000 | 26,312,000 | 27,788,000 | 28,276,000 | 30,656,000 | 27,885,000 | 28,291,000 | 28,287,000 | 27,965,000 | 31,831,000 | 32,716,000 | 33,521,000 | 19,807,000 | 19,682,000 | 19,466,000 | 20,019,000 | 20,098,000 | 19,465,000 | 19,075,000 |
| Operating ROA | -0.54% | 2.34% | 1.59% | 2.13% | 0.46% | -0.54% | -0.66% | 0.61% | 1.65% | 2.92% | 4.40% | 4.53% | 5.10% | 8.75% | 8.59% | 8.20% | 8.07% | 8.69% | 8.91% | 9.22% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-140,000K ÷ $25,782,000K
= -0.54%
Operating return on assets (ROA) is a key financial ratio that indicates how effectively a company is utilizing its assets to generate operating profits. For Baxter International Inc, the operating ROA has displayed some fluctuations over the past few years.
From March 31, 2020, to June 30, 2020, the operating ROA decreased from 9.22% to 8.91%. Thereafter, it continued to decline gradually, reaching 4.40% by June 30, 2022. This downward trend suggests a decreasing ability of the company to generate operating profits relative to its total assets.
However, there were intermittent increases in the operating ROA, such as the slight uptick from 8.07% on December 31, 2020, to 8.20% on March 31, 2021, and the more significant rise from 1.65% on December 31, 2022, to 2.13% on March 31, 2023. These fluctuations indicate varying levels of operational efficiency and profitability for Baxter International Inc during the period under review.
Overall, the trend in operating ROA for Baxter International Inc shows a general decline, with some intermittent improvements. It is essential for stakeholders to closely monitor this ratio to assess the company's management of assets and its ability to generate profits from its core operations.
Peer comparison
Dec 31, 2024