Baxter International Inc (BAX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 18,193,000 | 17,299,000 | 17,503,000 | 16,241,000 |
| Operating ROA | 1.58% | 2.31% | -7.61% | -6.50% | -6.59% | -7.40% | 4.16% | 4.53% | 5.10% | 8.75% | 8.59% | 8.20% | 8.07% | 8.69% | 9.14% | 9.43% | 9.74% | 9.41% | 8.60% | 9.44% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $447,000K ÷ $28,276,000K
= 1.58%
Baxter International Inc.'s operating return on assets (operating ROA) has exhibited varying trends over the past eight quarters. The operating ROA has declined consistently from Q1 2022 to Q1 2023, indicating decreasing efficiency in generating operating income relative to its total assets.
The highest operating ROA was observed in Q2 2022 at 4.30%, which then decreased to 1.28% in Q4 2023, marking a significant drop over this period. This declining trend suggests potential inefficiencies in utilizing the company's assets to generate operating profits.
It is essential for Baxter International Inc. to closely monitor and evaluate the factors contributing to this downward trend in operating ROA and take necessary corrective actions to improve operational efficiency and profitability in the future quarters.
Peer comparison
Dec 31, 2023