Debt to Equity
since 2005
Calculation
Baxter International Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt and lease obligations1 | ÷ | Total Baxter shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.74 | = | 6,520) | ÷ | 8,846) |
| Dec 31, 2014 | 1.15 | = | 9,305) | ÷ | 8,120) |
| Dec 31, 2013 | 1.08 | = | 9,166) | ÷ | 8,463) |
| Dec 31, 2012 | 0.85 | = | 5,930) | ÷ | 6,938) |
| Dec 31, 2011 | 0.79 | = | 5,195) | ÷ | 6,585) |
| Dec 31, 2010 | 0.67 | = | 4,387) | ÷ | 6,567) |
| Dec 31, 2009 | 0.58 | = | 4,151) | ÷ | 7,191) |
| Dec 31, 2008 | 0.60 | = | 3,756) | ÷ | 6,229) |
| Dec 31, 2007 | 0.45 | = | 3,089) | ÷ | 6,916) |
| Dec 31, 2006 | 0.45 | = | 2,801) | ÷ | 6,272) |
| Dec 31, 2005 | 0.78 | = | 3,338) | ÷ | 4,299) |
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 analysis of the financial data over the period from 2005 to 2015 reveals notable trends in the company’s capital structure and leverage profile.
- Total Debt and Lease Obligations
- The total debt and lease obligations initially declined from 3,338 million USD in 2005 to 2,801 million USD in 2006, but generally exhibited an upward trend thereafter, reaching a peak of 9,305 million USD in 2014 before declining to 6,520 million USD in 2015. This indicates a pattern of increased borrowing after 2006, with a significant rise occurring between 2012 and 2014, followed by a partial reduction in the final year observed.
- Total Shareholders’ Equity
- Shareholders' equity showed growth overall, rising from 4,299 million USD in 2005 to 8,846 million USD in 2015. There were fluctuations within this period, including a peak in 2009 at 7,191 million USD followed by a slight decline in the subsequent years before recovering strongly in 2013 and maintaining elevated levels through 2015. This pattern suggests sustained value creation for shareholders with some periods of equity variability.
- Debt to Equity Ratio
- The debt to equity ratio reveals shifts in the company’s leverage strategy. The ratio began at 0.78 in 2005, decreasing to a low of 0.45 in 2006 and 2007, indicating conservative leverage relative to equity during those years. From 2008 onward, the ratio steadily increased, surpassing 1.0 in 2013 and 2014 (1.08 and 1.15 respectively), signifying higher reliance on debt financing relative to equity. Notably, in 2015, the ratio fell back to 0.74, reflecting the decrease in debt and stabilization of equity levels.
In summary, the data reflect a strategic increase in debt financing after 2007, contributing to higher leverage up to 2014, accompanied by growing shareholders' equity that partially absorbed financial risk. The reduction in debt by 2015 and the consequent decline in the debt to equity ratio may signal a shift toward deleveraging or a more balanced capital structure approach in the most recent year analyzed.
Comparison to Competitors
Baxter International Inc., debt to equity, 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 | 0.74 | 0.42 | 0.69 | 0.00 | 0.68 | 0.95 |
| Dec 31, 2014 | 1.15 | 0.36 | 0.62 | 0.00 | 0.61 | 0.54 |
| Dec 31, 2013 | 1.08 | 0.26 | 0.59 | 0.00 | 0.57 | 0.52 |
| Dec 31, 2012 | 0.85 | 0.77 | 0.63 | 0.00 | 0.62 | 0.54 |
| Dec 31, 2011 | 0.79 | 0.63 | 0.42 | 0.00 | 0.62 | 0.41 |
| Dec 31, 2010 | 0.67 | 0.85 | 0.38 | 0.00 | 0.65 | 0.43 |
| Dec 31, 2009 | 0.58 | 0.72 | 0.34 | 0.00 | 0.57 | 0.47 |
| Dec 31, 2008 | 0.60 | 0.65 | 0.41 | 0.00 | 0.60 | 0.62 |
| Dec 31, 2007 | 0.45 | 0.69 | 0.39 | 0.00 | 0.55 | 0.55 |
| Dec 31, 2006 | 0.45 | 0.88 | 0.29 | 0.00 | 0.84 | 0.36 |
| Dec 31, 2005 | 0.78 | 0.46 | 0.27 | 0.00 | 0.23 | 0.40 |
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., debt to equity, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 0.74 | 0.69 |
| Dec 31, 2014 | 1.15 | 0.52 |
| Dec 31, 2013 | 1.08 | 0.47 |
| Dec 31, 2012 | 0.85 | 0.61 |
| Dec 31, 2011 | 0.79 | 0.49 |
| Dec 31, 2010 | 0.67 | 0.55 |
| Dec 31, 2009 | 0.58 | 0.51 |
| Dec 31, 2008 | 0.60 | 0.55 |
| Dec 31, 2007 | 0.45 | 0.53 |
| Dec 31, 2006 | 0.45 | 0.50 |
| Dec 31, 2005 | 0.78 | 0.34 |
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., debt to equity, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 0.74 | 0.69 |
| Dec 31, 2014 | 1.15 | 0.54 |
| Dec 31, 2013 | 1.08 | 0.50 |
| Dec 31, 2012 | 0.85 | 0.54 |
| Dec 31, 2011 | 0.79 | 0.47 |
| Dec 31, 2010 | 0.67 | 0.43 |
| Dec 31, 2009 | 0.58 | 0.42 |
| Dec 31, 2008 | 0.60 | 0.42 |
| Dec 31, 2007 | 0.45 | 0.36 |
| Dec 31, 2006 | 0.45 | 0.32 |
| Dec 31, 2005 | 0.78 | 0.30 |
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).