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.