Baxter International Inc (BAX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Baxter International Inc's solvency ratios reflect a strong financial position as indicated by consistently low debt ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from March 31, 2020, to December 31, 2024, indicating that the company's total debt relative to its assets, capital, and equity is effectively non-existent.
While the Debt ratios are minimal, the Financial leverage ratio has shown some fluctuations during the period. It increased from 2.48 on March 31, 2020, to a peak of 5.05 on September 30, 2022, before declining to 3.70 by December 31, 2024. This suggests that the company has taken on more financial leverage in recent years but has managed to bring it back down towards the end of the period.
Overall, Baxter International Inc's solvency ratios demonstrate a stable and healthy financial structure with very little reliance on debt, which bodes well for the company's long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its total interest expenses.
Analyzing Baxter International Inc's interest coverage ratio from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's ability to cover its interest obligations:
- The interest coverage ratio starts at a healthy level of around 9.99 in March 2020 and remains relatively stable above 8 for the following quarters, indicating that the company's EBIT comfortably covered its interest payments during this period.
- There is a notable improvement in the interest coverage ratio towards the end of 2020, reaching a peak of 12.40 in December 2020, suggesting stronger earnings relative to interest expenses.
- However, starting from March 2022, the interest coverage ratio declines, dropping to negative territory in the third and fourth quarters of 2022, indicating that Baxter International Inc's EBIT was insufficient to cover its interest costs during these periods.
- The company shows signs of recovery in the following quarters, with the interest coverage ratio gradually improving but remaining below the levels seen in the earlier periods.
Overall, the analysis of Baxter International Inc's interest coverage ratio highlights periods of strong and weak financial performance in terms of the company's ability to service its interest obligations. The declining trend in the mid-2022 followed by a recovery in 2023 and 2024 may indicate changes in the company's profitability and capital structure that are worth further investigation.