Baxter International Inc (BAX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.11% | 37.78% | 35.79% | 33.90% | 33.76% | 33.70% | 33.66% | 35.84% | 35.71% | 36.23% | 38.95% | 39.19% | 39.93% | 39.27% | 39.06% | 38.66% | 39.30% | 40.71% | 41.45% | 42.06% |
| Operating profit margin | -1.09% | 4.46% | 2.79% | 3.98% | 0.86% | -1.11% | -1.23% | 1.15% | 3.10% | 5.54% | 9.86% | 10.95% | 13.38% | 13.92% | 13.86% | 13.51% | 13.84% | 15.14% | 15.21% | 15.25% |
| Pretax margin | -4.61% | 1.19% | -0.50% | -0.01% | -0.31% | -0.41% | -19.01% | -15.79% | -15.57% | -15.56% | 7.91% | 9.01% | 11.55% | 11.28% | 11.22% | 10.70% | 11.07% | 7.45% | 8.11% | 8.66% |
| Net profit margin | -5.05% | 0.77% | 16.51% | 17.79% | 17.77% | 17.34% | -18.98% | -16.32% | -16.08% | -16.10% | 7.12% | 7.80% | 10.04% | 9.75% | 9.18% | 9.04% | 9.44% | 7.90% | 8.10% | 8.59% |
Based on the financial data provided, Baxter International Inc's profitability ratios have shown fluctuations over the reported period.
1. Gross Profit Margin: The gross profit margin has declined from 42.06% as of March 31, 2020, to 33.76% as of December 31, 2023, before increasing to 37.11% by December 31, 2024. The overall trend indicates a decrease in the company's ability to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin also experienced a downward trend, dropping from 15.25% on March 31, 2020, to -1.09% on December 31, 2024. This reflects a significant decline in the company's ability to generate profits from its core operations.
3. Pre-Tax Margin: The pre-tax margin fluctuated widely, with percentages ranging from 8.66% on March 31, 2020, to -4.61% on December 31, 2024. The negative margins in some periods indicate that Baxter International Inc incurred losses before accounting for taxes during those quarters.
4. Net Profit Margin: The net profit margin also showed variability, with a decline from 8.59% on March 31, 2020, to -5.05% on December 31, 2024. The negative net margins in some periods highlight the company's challenges in generating profits after all expenses, including taxes, have been accounted for.
Overall, Baxter International Inc's profitability ratios suggest a mixed performance, with decreasing margins in certain periods and profitability challenges in recent quarters. It's essential for the company to address the factors impacting its profitability to ensure long-term financial sustainability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -2.52% | 0.40% | 9.41% | 9.53% | 9.39% | 8.46% | -10.22% | -8.68% | -8.59% | -8.49% | 3.18% | 3.23% | 3.83% | 6.13% | 5.69% | 5.49% | 5.50% | 4.53% | 4.75% | 5.20% |
| Return on total capital | -0.65% | 10.73% | 8.37% | 9.08% | 6.87% | 5.76% | -47.24% | -37.29% | -34.53% | -31.83% | 22.02% | 22.35% | 22.99% | 22.61% | 22.56% | 21.70% | 21.41% | 13.54% | 13.61% | 14.01% |
| Return on equity (ROE) | -9.32% | 1.37% | 32.40% | 32.41% | 31.61% | 32.00% | -51.18% | -41.79% | -41.66% | -42.87% | 11.41% | 11.65% | 14.15% | 13.84% | 13.19% | 12.64% | 12.68% | 10.63% | 11.37% | 12.87% |
Baxter International Inc's profitability has shown varying trends over the past few years, as reflected in its key profitability ratios.
1. Operating Return on Assets (Operating ROA): This ratio measures the operating income generated from each dollar of assets. Baxter International's Operating ROA has shown a declining trend from 9.22% in March 2020 to 1.65% in December 2022, with a slight improvement to 2.34% in September 2024. The decreasing trend indicates a potential inefficiency in utilizing its assets to generate operating income.
2. Return on Assets (ROA): ROA calculates the overall profitability of the company irrespective of financing arrangements. Baxter International's ROA has been somewhat volatile, with a significant decline in September 2022 and December 2022 to negative values, suggesting that the company's assets may not be efficiently utilized to generate profits. The ratio fluctuated in the following periods, with a minor improvement towards positive values by December 2024.
3. Return on Total Capital: This ratio measures the return earned on all capital invested in the company. Baxter International's Return on Total Capital saw a sharp decline reaching negative values in the second half of 2022, indicating a potential strain on the company's overall capital structure. However, there was a gradual recovery by September 2024, reaching positive values again.
4. Return on Equity (ROE): ROE indicates the return earned by the shareholders on their investment. Baxter International's ROE has also shown a declining trend in the mid-2020s, with negative values in the second half of 2022. This suggests that the company's profitability relative to the shareholders' equity has deteriorated. However, the ratio displayed an upward trend reaching positive values by December 2024.
Overall, Baxter International's profitability ratios have exhibited fluctuations and declines in certain periods, indicating potential challenges in generating profits from its assets and capital. It would be essential for the company to closely monitor and address these trends to improve its overall financial performance and shareholder value.
See also:
Baxter International Inc Profitability Ratios (Quarterly Data)