Baxter International Inc (BAX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.34% | 32.83% | 32.22% | 33.74% | 33.98% | 34.99% | 38.29% | 39.22% | 40.10% | 39.67% | 39.49% | 39.19% | 39.92% | 40.96% | 41.74% | 42.21% | 41.98% | 41.70% | 41.84% | 42.44% |
| Operating profit margin | 3.00% | 4.75% | -14.18% | -12.22% | -12.29% | -14.01% | 9.30% | 10.96% | 13.43% | 14.06% | 14.01% | 13.70% | 14.06% | 15.24% | 15.70% | 15.67% | 15.63% | 14.60% | 13.56% | 13.79% |
| Pretax margin | 17.65% | 16.69% | -18.65% | -15.77% | -15.50% | -15.80% | 7.78% | 8.93% | 11.52% | 11.31% | 11.25% | 10.77% | 11.17% | 7.42% | 8.06% | 8.29% | 8.47% | 14.31% | 13.42% | 14.11% |
| Net profit margin | 17.80% | 17.40% | -19.07% | -16.34% | -16.04% | -16.08% | 7.11% | 7.81% | 10.09% | 9.85% | 9.28% | 9.16% | 9.59% | 7.95% | 8.16% | 8.64% | 8.83% | 11.93% | 13.30% | 13.55% |
Baxter International Inc.'s profitability ratios have shown variability over the past eight quarters.
Gross profit margin has been relatively stable, fluctuating between 33.59% and 39.19% during this period. This indicates the efficiency of the company in controlling the cost of goods sold and generating profits from its core operations.
Operating profit margin has also shown consistency, albeit at lower levels compared to gross profit margin. It ranged from 2.44% to 10.78%, reflecting the company's ability to manage operating expenses and generate profits before interest and taxes.
Pretax margin has been more volatile, with significant fluctuations seen between quarters, ranging from -19.01% to 8.93%. The negative pretax margins indicate periods where the company's expenses exceeded its revenues before accounting for taxes.
Net profit margin has also shown variability, with a mix of positive and negative values over the quarters analyzed. The margin ranged from -19.00% to 17.93%, suggesting fluctuations in profitability after considering all expenses, including taxes.
Overall, Baxter International's profitability ratios highlight the company's ability to maintain consistent gross and operating profit margins, despite some fluctuations in pretax and net profit margins. It is important for the company to closely monitor and manage its expenses to sustain and improve its profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.39% | 8.46% | -10.23% | -8.70% | -8.60% | -8.50% | 3.18% | 3.23% | 3.83% | 6.13% | 5.69% | 5.49% | 5.50% | 4.53% | 4.75% | 5.20% | 5.50% | 7.68% | 8.44% | 9.27% |
| Return on total capital | 37.43% | 37.11% | -41.25% | -32.64% | -33.17% | -35.52% | 16.02% | 16.15% | 18.42% | 17.82% | 17.82% | 16.75% | 16.54% | 11.58% | 12.81% | 13.86% | 13.59% | 22.38% | 20.45% | 21.99% |
| Return on equity (ROE) | 31.61% | 32.00% | -51.23% | -41.84% | -41.71% | -42.93% | 11.41% | 11.65% | 14.15% | 13.84% | 13.19% | 12.64% | 12.68% | 10.63% | 11.37% | 12.87% | 12.70% | 17.51% | 19.00% | 19.89% |
Profitability ratios provide insights into a company's ability to generate profits relative to its assets, capital, and equity.
- Operating return on assets (Operating ROA) shows Baxter International Inc.'s operational efficiency in generating profit from its total assets. It trended downwards from Q1 2023 to Q4 2023, indicating a decline in operational efficiency.
- Return on assets (ROA) reflects Baxter International Inc.'s overall profit generation from its total assets. The negative values in Q2 and Q1 2023 suggest that the company incurred losses during those periods, which is a concerning sign for investors.
- Return on total capital measures the company's ability to generate profit from its total capital employed. Baxter International Inc. experienced a decrease in this ratio from Q1 to Q4 2023, indicating a decline in profitability relative to total capital invested.
- Return on equity (ROE) shows Baxter International Inc.'s profit generation for its shareholders' equity. The negative ROE values in Q2 and Q1 2023 indicate that the company was not profitable enough to provide returns to its shareholders during those periods.
Overall, Baxter International Inc. needs to improve its profitability measures, particularly in terms of ROA and ROE, to enhance value for its stakeholders and ensure sustainable growth in the long term.
See also:
Baxter International Inc Profitability Ratios (Quarterly Data)