Current Ratio
since 2005
Calculation
Baxter International Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 2.05 | = | 11,796) | ÷ | 5,750) |
| Dec 31, 2014 | 1.71 | = | 10,351) | ÷ | 6,042) |
| Dec 31, 2013 | 1.69 | = | 10,004) | ÷ | 5,906) |
| Dec 31, 2012 | 1.95 | = | 9,260) | ÷ | 4,759) |
| Dec 31, 2011 | 1.78 | = | 8,650) | ÷ | 4,857) |
| Dec 31, 2010 | 1.98 | = | 7,989) | ÷ | 4,041) |
| Dec 31, 2009 | 1.85 | = | 8,271) | ÷ | 4,464) |
| Dec 31, 2008 | 1.97 | = | 7,148) | ÷ | 3,635) |
| Dec 31, 2007 | 1.98 | = | 7,555) | ÷ | 3,812) |
| Dec 31, 2006 | 1.93 | = | 6,970) | ÷ | 3,610) |
| Dec 31, 2005 | 1.23 | = | 5,116) | ÷ | 4,165) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data from 2005 to 2015 indicates a sustained strengthening of the short-term liquidity position. The overall trend reflects a consistent increase in liquid resources relative to short-term obligations, ensuring a robust capacity to meet immediate financial commitments.
- Current Asset Trajectory
- Current assets exhibited a strong upward trend, growing from 5,116 million USD in 2005 to 11,796 million USD by 2015. This growth was characterized by a significant initial surge between 2005 and 2006 and a steady climb thereafter, more than doubling the total asset base over the eleven-year period.
- Current Liability Management
- Current liabilities demonstrated more volatility than assets. After an initial decrease from 4,165 million USD in 2005 to 3,610 million USD in 2006, liabilities remained relatively stable for several years. A notable increase occurred between 2012 and 2014, peaking at 6,042 million USD before declining to 5,750 million USD in 2015.
- Current Ratio Dynamics
- The current ratio experienced a sharp improvement from 1.23 in 2005 to 1.93 in 2006, maintaining a high plateau near 2.0 for much of the subsequent decade. Although a slight contraction occurred between 2011 and 2014, with the ratio reaching a period low of 1.69 in 2013, it recovered strongly to reach a peak of 2.05 by the end of 2015. This progression indicates that the organization transitioned from a lean liquidity position to one where current assets consistently cover short-term liabilities by a factor of approximately two.
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Comparison to Competitors
Baxter International Inc., current ratio, long-term trends, comparison to competitors
| Baxter International Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2015 | 2.05 | 1.54 | 1.62 | 4.46 | 3.36 | 0.74 |
| Dec 31, 2014 | 1.71 | 1.45 | 1.72 | 3.69 | 3.82 | 0.77 |
| Dec 31, 2013 | 1.69 | 2.02 | 1.82 | 5.07 | 4.57 | 0.73 |
| Dec 31, 2012 | 1.95 | 2.36 | 1.78 | 4.71 | 1.62 | 0.78 |
| Dec 31, 2011 | 1.78 | 1.54 | 1.71 | 4.57 | 1.93 | 0.85 |
| Dec 31, 2010 | 1.98 | 1.29 | 1.87 | 4.66 | 1.92 | 0.78 |
| Dec 31, 2009 | 1.85 | 1.79 | 1.91 | 4.18 | 2.37 | 0.82 |
| Dec 31, 2008 | 1.97 | 1.47 | 0.81 | 4.28 | 2.07 | 0.76 |
| Dec 31, 2007 | 1.98 | 1.54 | 0.91 | 4.63 | 3.09 | 0.84 |
| Dec 31, 2006 | 1.93 | 0.94 | 0.77 | 4.64 | 2.36 | 0.87 |
| Dec 31, 2005 | 1.23 | 1.54 | 1.75 | 3.60 | 2.20 | 0.64 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Baxter International Inc., current ratio, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 2.05 | 1.36 |
| Dec 31, 2014 | 1.71 | 1.43 |
| Dec 31, 2013 | 1.69 | 1.54 |
| Dec 31, 2012 | 1.95 | 1.47 |
| Dec 31, 2011 | 1.78 | 1.36 |
| Dec 31, 2010 | 1.98 | 1.29 |
| Dec 31, 2009 | 1.85 | 1.46 |
| Dec 31, 2008 | 1.97 | 1.04 |
| Dec 31, 2007 | 1.98 | 1.14 |
| Dec 31, 2006 | 1.93 | 0.99 |
| Dec 31, 2005 | 1.23 | 1.31 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Baxter International Inc., current ratio, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 2.05 | 1.70 |
| Dec 31, 2014 | 1.71 | 1.92 |
| Dec 31, 2013 | 1.69 | 1.96 |
| Dec 31, 2012 | 1.95 | 1.84 |
| Dec 31, 2011 | 1.78 | 1.94 |
| Dec 31, 2010 | 1.98 | 1.81 |
| Dec 31, 2009 | 1.85 | 1.78 |
| Dec 31, 2008 | 1.97 | 1.44 |
| Dec 31, 2007 | 1.98 | 1.53 |
| Dec 31, 2006 | 1.93 | 1.39 |
| Dec 31, 2005 | 1.23 | 1.63 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).