Net Profit Margin
since 2005
Calculation
Baxter International Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Baxter1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 9.71% | = | 100 | × | 968) | ÷ | 9,968) |
| Dec 31, 2014 | 14.98% | = | 100 | × | 2,497) | ÷ | 16,671) |
| Dec 31, 2013 | 13.19% | = | 100 | × | 2,012) | ÷ | 15,259) |
| Dec 31, 2012 | 16.39% | = | 100 | × | 2,326) | ÷ | 14,190) |
| Dec 31, 2011 | 16.01% | = | 100 | × | 2,224) | ÷ | 13,893) |
| Dec 31, 2010 | 11.06% | = | 100 | × | 1,420) | ÷ | 12,843) |
| Dec 31, 2009 | 17.55% | = | 100 | × | 2,205) | ÷ | 12,562) |
| Dec 31, 2008 | 16.31% | = | 100 | × | 2,014) | ÷ | 12,348) |
| Dec 31, 2007 | 15.16% | = | 100 | × | 1,707) | ÷ | 11,263) |
| Dec 31, 2006 | 13.46% | = | 100 | × | 1,397) | ÷ | 10,378) |
| Dec 31, 2005 | 9.71% | = | 100 | × | 956) | ÷ | 9,849) |
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 net profit margin between 2005 and 2015 demonstrates a trajectory of initial steady expansion, followed by mid-period volatility and a final significant contraction in both scale and profitability.
- Profitability Growth Phase (2005–2009)
- A consistent upward trend in the net profit margin is observed during this period, rising from 9.71% in 2005 to a peak of 17.55% in 2009. This expansion was driven by net income growing at a faster rate than net sales, with income increasing from US$ 956 million to US$ 2,205 million while sales grew from US$ 9,849 million to US$ 12,562 million.
- Period of Volatility (2010–2014)
- A significant margin compression occurred in 2010, where the net profit margin dropped to 11.06% despite continued growth in net sales. A recovery followed in 2011 and 2012, with margins reaching 16.01% and 16.39%, respectively. The subsequent years showed fluctuation, with a dip to 13.19% in 2013 followed by a moderate increase to 14.98% in 2014.
- Fiscal Contraction (2015)
- A sharp decline in both operational scale and profitability is evident in 2015. Net sales decreased substantially from US$ 16,671 million to US$ 9,968 million, and net income attributable to the company fell from US$ 2,497 million to US$ 968 million. This resulted in the net profit margin reverting to 9.71%, a level identical to that recorded in 2005.
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Comparison to Competitors
Baxter International Inc., net profit margin, 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 | 9.71% | 21.68% | 3.27% | 24.69% | 13.20% | 3.72% |
| Dec 31, 2014 | 14.98% | 11.28% | 3.52% | 19.65% | 18.02% | 4.33% |
| Dec 31, 2013 | 13.19% | 11.79% | 3.55% | 29.62% | 20.90% | 4.62% |
| Dec 31, 2012 | 16.39% | 14.95% | 4.37% | 30.14% | 22.35% | 5.03% |
| Dec 31, 2011 | 16.01% | 12.17% | 4.42% | 28.17% | 19.43% | 5.08% |
| Dec 31, 2010 | 11.06% | 13.15% | 4.99% | 27.02% | 19.59% | 4.95% |
| Dec 31, 2009 | 17.55% | 18.68% | 7.80% | 22.11% | 14.86% | 4.42% |
| Dec 31, 2008 | 16.31% | 16.53% | 4.04% | 23.35% | 16.51% | 3.70% |
| Dec 31, 2007 | 15.16% | 13.92% | 5.56% | 24.06% | 22.78% | 6.26% |
| Dec 31, 2006 | 13.46% | 7.64% | 5.52% | 19.33% | 22.55% | 5.89% |
| Dec 31, 2005 | 9.71% | 15.10% | 5.53% | 41.41% | 17.94% | 7.36% |
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., net profit margin, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 9.71% | 5.78% |
| Dec 31, 2014 | 14.98% | 5.76% |
| Dec 31, 2013 | 13.19% | 6.37% |
| Dec 31, 2012 | 16.39% | 8.05% |
| Dec 31, 2011 | 16.01% | 7.40% |
| Dec 31, 2010 | 11.06% | 7.67% |
| Dec 31, 2009 | 17.55% | 8.63% |
| Dec 31, 2008 | 16.31% | 6.88% |
| Dec 31, 2007 | 15.16% | 8.40% |
| Dec 31, 2006 | 13.46% | 7.20% |
| Dec 31, 2005 | 9.71% | 9.04% |
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., net profit margin, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 9.71% | 13.94% |
| Dec 31, 2014 | 14.98% | 14.40% |
| Dec 31, 2013 | 13.19% | 15.04% |
| Dec 31, 2012 | 16.39% | 13.92% |
| Dec 31, 2011 | 16.01% | 12.06% |
| Dec 31, 2010 | 11.06% | 11.90% |
| Dec 31, 2009 | 17.55% | 17.77% |
| Dec 31, 2008 | 16.31% | 13.00% |
| Dec 31, 2007 | 15.16% | 12.52% |
| Dec 31, 2006 | 13.46% | 15.30% |
| Dec 31, 2005 | 9.71% | 14.61% |
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).