Baxter International Inc (BAX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,964,000	8,402,000	5,833,000	9,077,000	8,689,000
ROE		-4.48%	31.61%	-41.51%	14.15%	12.68%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-312,000K ÷ $6,964,000K
= -4.48%

Baxter International Inc's return on equity (ROE) has shown fluctuations over the years based on the provided data.

- In December 31, 2020, the ROE was at 12.68%, indicating that the company was generating a decent return for its shareholders relative to the equity invested.

- By December 31, 2021, the ROE had improved to 14.15%, suggesting that the company had become more efficient in utilizing its equity to generate profits.

- However, there was a significant decline in ROE by December 31, 2022, reaching -41.51%. This negative ROE indicates that the company experienced a net loss during this period, which may be a matter of concern for investors.

- The following year, by December 31, 2023, the ROE rebounded strongly to 31.61%, demonstrating a significant improvement in profitability and efficiency in utilizing shareholder equity.

- In December 31, 2024, the ROE dropped to -4.48%, indicating a return below the equity invested during that period.

Overall, Baxter International Inc's ROE has shown variability, with both positive and negative fluctuations in different years. Investors should consider the reasons behind these fluctuations to assess the company's financial performance and sustainability.