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
Between 2005 and 2015, the company's capital structure experienced significant shifts in leverage, characterized by a period of aggressive debt accumulation followed by a substantial reduction. The debt-to-equity ratio exhibited a fluctuating trajectory, reaching a peak in 2014 before a sharp correction in 2015.
- Debt Obligations Trends
- Total debt and lease obligations showed a general upward trajectory for the majority of the analyzed period. Following a decrease to 2,801 million USD in 2006, liabilities grew steadily, reaching 5,930 million USD by 2012. A significant acceleration in borrowing occurred between 2012 and 2013, where debt jumped to 9,166 million USD, eventually peaking at 9,305 million USD in 2014. This trend reversed abruptly in 2015, as obligations fell to 6,520 million USD.
- Shareholders' Equity Trends
- Equity demonstrated a long-term growth pattern despite intermittent volatility. Initial growth from 4,299 million USD in 2005 to 6,916 million USD in 2007 was followed by a period of relative stability between 2008 and 2012, with values fluctuating between 6,229 million USD and 6,938 million USD. A stronger growth phase began in 2013, leading to a period high of 8,846 million USD by the end of 2015.
- Debt-to-Equity Ratio Analysis
- The leverage ratio reached its lowest points in 2006 and 2007 at 0.45, indicating a conservative financing strategy. From 2008 onward, a sustained increase in leverage is observed, with the ratio crossing the 1.0 threshold in 2013 (1.08) and peaking at 1.15 in 2014. This indicates that by 2014, total debt exceeded total shareholders' equity. The ratio returned to a more balanced level in 2015, dropping to 0.74, a result of the simultaneous reduction in total debt and the increase in equity.
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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).