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