Baxter International Inc (BAX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 25,782,000 | 28,276,000 | 28,287,000 | 33,521,000 | 20,019,000 |
| Total stockholders’ equity | US$ in thousands | 6,964,000 | 8,402,000 | 5,833,000 | 9,077,000 | 8,689,000 |
| Financial leverage ratio | 3.70 | 3.37 | 4.85 | 3.69 | 2.30 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,782,000K ÷ $6,964,000K
= 3.70
The financial leverage ratio of Baxter International Inc has exhibited significant fluctuations over the past five years. Starting at 2.30 on December 31, 2020, the ratio increased to 3.69 by the end of 2021, indicating a higher level of financial leverage. This trend continued in 2022, with the ratio rising to 4.85, suggesting an even greater reliance on debt to finance the company's operations.
However, there was a notable decline in the financial leverage ratio in 2023, dropping to 3.37. This could be a positive sign, indicating potential deleveraging or a shift towards a more balanced capital structure. The ratio remained relatively stable in 2024, coming in at 3.70, reflecting a moderate level of financial leverage compared to the peak in 2022.
Overall, Baxter International Inc's financial leverage ratio has experienced fluctuations, with the company possibly making strategic decisions to adjust its capital structure and manage its debt levels effectively. Further analysis of the underlying reasons driving these changes would provide a more nuanced understanding of the company's financial health and risk profile.
Peer comparison
Dec 31, 2024