Baxter International Inc (BAX)

Return on assets (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
Net income (ttm) US$ in thousands 2,656,000 2,592,000 -2,853,000 -2,460,000 -2,433,000 -2,376,000 1,011,000 1,057,000 1,284,000 1,214,000 1,120,000 1,068,000 1,102,000 911,000 924,000 991,000 1,001,000 1,329,000 1,478,000 1,506,000
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,656,000K ÷ $28,276,000K
= 9.39%

To analyze Baxter International Inc.'s return on assets (ROA) over the past eight quarters, we observe fluctuations in the ROA ratio. ROA is a key profitability measure indicating how efficiently the company utilizes its assets to generate profits.

In Q4 2023, Baxter International Inc. recorded an ROA of 9.39%, showcasing a significant improvement in asset utilization compared to the previous quarter. This suggests the company improved its ability to generate earnings from its assets during the period.

During Q3 2023, the ROA stood at 8.46%, demonstrating a slightly lower but still strong performance in asset utilization. This indicates the company was efficient in generating profits from its assets during that quarter as well.

However, in Q2 2023 and Q1 2023, Baxter International Inc. experienced negative ROA values of -10.23% and -8.70% respectively. These negative figures signify that the company incurred losses or failed to efficiently leverage its assets to generate profits during these quarters.

Looking back to Q4 and Q3 2022, the ROA values were also negative at -8.60% and -8.50%. This indicates a continued struggle in effectively utilizing assets to generate profits during that period.

Comparatively, in Q2 and Q1 2022, Baxter International Inc. showed positive ROA values of 3.18% and 3.23% respectively. This indicates a relatively healthy performance in asset utilization during that time.

Overall, Baxter International Inc.'s ROA has shown a mix of positive and negative results over the past eight quarters. It is crucial for the company to focus on improving its operational efficiency and asset management to consistently generate profits from its assets in order to enhance shareholder value.


Peer comparison

Dec 31, 2023


See also:

Baxter International Inc Return on Assets (ROA) (Quarterly Data)