Baxter International Inc (BAX)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	25,782,000	26,676,000	26,312,000	27,788,000	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
Total stockholders’ equity	US$ in thousands	6,964,000	7,872,000	7,643,000	8,173,000	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
Financial leverage ratio		3.70	3.39	3.44	3.40	3.37	3.78	5.01	4.81	4.85	5.05	3.59	3.61	3.69	2.26	2.32	2.30	2.30	2.35	2.39	2.48

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,782,000K ÷ $6,964,000K
= 3.70

The financial leverage ratio for Baxter International Inc has shown fluctuations over the past few years. The ratio has generally been within the range of 2.3 to 3.7, indicating that the company has been using a moderate level of debt to finance its operations.

However, there was a significant spike in the financial leverage ratio in September 2022, where it jumped to 5.05. This could suggest a higher reliance on debt during that period, possibly for expansion or investment purposes.

Subsequently, the ratio decreased gradually but remained elevated compared to the earlier periods. This indicates that Baxter International Inc may have taken steps to reduce its debt levels, possibly through debt repayments or changes in capital structure.

Overall, the trend in the financial leverage ratio for Baxter International Inc reflects varying levels of debt usage over time, with the company appearing to maintain a balance between utilizing debt for growth opportunities while managing the associated financial risks.