Baxter International Inc (BAX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -45,000 | 845,000 | 640,000 | 742,000 | 577,000 | 467,000 | -2,631,000 | -2,192,000 | -2,014,000 | -1,762,000 | 1,951,000 | 2,028,000 | 2,087,000 | 1,983,000 | 1,916,000 | 1,834,000 | 1,860,000 | 1,160,000 | 1,106,000 | 1,079,000 |
| Interest expense (ttm) | US$ in thousands | 394,000 | 411,000 | 452,000 | 480,000 | 494,000 | 494,000 | 475,000 | 436,000 | 407,000 | 364,000 | 309,000 | 253,000 | 202,000 | 166,000 | 154,000 | 157,000 | 150,000 | 142,000 | 128,000 | 108,000 |
| Interest coverage | -0.11 | 2.06 | 1.42 | 1.55 | 1.17 | 0.95 | -5.54 | -5.03 | -4.95 | -4.84 | 6.31 | 8.02 | 10.33 | 11.95 | 12.44 | 11.68 | 12.40 | 8.17 | 8.64 | 9.99 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-45,000K ÷ $394,000K
= -0.11
The interest coverage ratio of Baxter International Inc has shown fluctuation over the periods provided in the data. From March 31, 2020, to March 31, 2021, the interest coverage ratio remained relatively stable around 10, indicating the company's ability to comfortably cover its interest payments. However, from June 30, 2021, to December 31, 2024, there was a decline in the interest coverage ratio, falling below 1 in some quarters.
Specifically, from September 30, 2022, to December 31, 2024, the interest coverage ratio turned negative, suggesting that Baxter International Inc may have faced challenges in meeting its interest obligations with its operating earnings. This negative trend may raise concerns about the company's financial health and its ability to service its debt in the short term.
Further analysis and investigation into the reasons behind the declining interest coverage ratio, such as changes in operating income, interest expenses, or overall financial performance, would be necessary to understand the underlying causes and potential implications for Baxter International Inc's financial stability.
Peer comparison
Dec 31, 2024