Baxter International Inc (BAX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,145,000 | 3,006,000 | -2,297,000 | -1,919,000 | -1,935,000 | -1,966,000 | 1,419,000 | 1,466,000 | 1,672,000 | 1,563,000 | 1,514,000 | 1,416,000 | 1,437,000 | 992,000 | 1,041,000 | 1,067,000 | 1,071,000 | 1,698,000 | 1,591,000 | 1,665,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,402,000 | 8,101,000 | 5,569,000 | 5,879,000 | 5,833,000 | 5,535,000 | 8,859,000 | 9,075,000 | 9,077,000 | 8,770,000 | 8,494,000 | 8,452,000 | 8,689,000 | 8,567,000 | 8,128,000 | 7,699,000 | 7,882,000 | 7,588,000 | 7,779,000 | 7,570,000 |
| Return on total capital | 37.43% | 37.11% | -41.25% | -32.64% | -33.17% | -35.52% | 16.02% | 16.15% | 18.42% | 17.82% | 17.82% | 16.75% | 16.54% | 11.58% | 12.81% | 13.86% | 13.59% | 22.38% | 20.45% | 21.99% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,145,000K ÷ ($—K + $8,402,000K)
= 37.43%
Analyzing Baxter International Inc.'s return on total capital based on the provided data reveals fluctuations in the company's performance over the past eight quarters. The return on total capital varied from a low of 1.63% in Q4 2023 to a high of 5.56% in Q1 2022.
The downward trend in return on total capital from Q1 2022 to Q4 2023 raises concerns about the company's efficiency in utilizing its capital to generate profits. This decline may suggest potential challenges in managing costs or achieving optimal revenue generation.
The most recent quarterly return on total capital of 1.63% in Q4 2023 is notably lower compared to previous quarters, which could indicate a need for Baxter International Inc. to focus on improving capital utilization and operational efficiency in the upcoming periods.
Overall, the varying performance of return on total capital indicates the need for Baxter International Inc. to closely monitor and enhance its capital allocation strategies to drive sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023