Baxter International Inc (BAX)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,402,000 | 5,833,000 | 9,077,000 | 8,689,000 | 7,882,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $8,402,000K
= 0.00
The debt-to-equity ratio of Baxter International Inc. has exhibited fluctuations over the past five years. In 2023, the company's debt-to-equity ratio stood at 1.64, indicating a decrease from the previous year. This suggests that Baxter International has a lower proportion of debt relative to equity in its capital structure compared to 2022, which may signify improved financial stability and lower financial risk for the company.
The ratio was significantly higher in 2022 at 2.85, reflecting a considerable increase in leverage compared to 2021. This surge could indicate that Baxter International relied more heavily on debt financing in 2022, potentially for expansion or investment purposes. However, such a high debt-to-equity ratio may raise concerns about the company's ability to service its debt obligations and could expose it to greater financial risks.
In 2021, the debt-to-equity ratio decreased to 1.95, marking a decline from the previous year. This reduction could suggest that Baxter International made efforts to deleverage its balance sheet or pay down debt during that period.
The lowest ratio in the provided data was observed in 2020 at 0.71, indicating a conservative financial structure with a higher proportion of equity relative to debt. A low debt-to-equity ratio can imply financial stability, strong solvency, and a reduced risk of potential default.
Lastly, in 2019, Baxter International maintained a relatively stable debt-to-equity ratio of 0.68, indicating a consistent capital structure with a modest level of debt utilization relative to equity.
In conclusion, Baxter International Inc.'s debt-to-equity ratio has varied over the past five years, reflecting changes in the company's capital structure and financing strategies. Analyzing this ratio can provide insights into the company's financial health, risk profile, and leverage levels.
Peer comparison
Dec 31, 2023