Baxter International Inc (BAX)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-312,000	2,656,000	-2,421,000	1,284,000	1,102,000
Total assets	US$ in thousands	25,782,000	28,276,000	28,287,000	33,521,000	20,019,000
ROA		-1.21%	9.39%	-8.56%	3.83%	5.50%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-312,000K ÷ $25,782,000K
= -1.21%

Baxter International Inc's return on assets (ROA) has displayed some fluctuations over the years based on the provided data.

- In December 31, 2020, the ROA was at a healthy 5.50%, indicating that the company was able to generate 5.50 cents of profit for each dollar of assets it possesses.
- However, by December 31, 2021, the ROA declined to 3.83%, suggesting a decrease in the company's efficiency in utilizing its assets to generate profits.
- The following year, by December 31, 2022, the ROA turned negative at -8.56%, indicating that the company incurred a loss on its assets, which may have been due to operational challenges or impairment of assets.
- Subsequently, in December 31, 2023, the ROA significantly improved to 9.39%, showcasing a strong rebound in the company's ability to generate profits from its assets.
- Unfortunately, by December 31, 2024, the ROA declined again to -1.21%, reflecting a setback in the company's asset utilization efficiency.

Overall, Baxter International Inc's ROA has shown variability, with periods of both strong performance and challenges in effectively leveraging its assets to generate profits. This indicates the need for continued monitoring and strategic management of the company's asset utilization for sustained financial health.