Return on Assets (ROA)
since 2005
Calculation
Baxter International Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Baxter1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 4.62% | = | 100 | × | 968) | ÷ | 20,975) |
| Dec 31, 2014 | 9.63% | = | 100 | × | 2,497) | ÷ | 25,917) |
| Dec 31, 2013 | 7.78% | = | 100 | × | 2,012) | ÷ | 25,869) |
| Dec 31, 2012 | 11.41% | = | 100 | × | 2,326) | ÷ | 20,390) |
| Dec 31, 2011 | 11.66% | = | 100 | × | 2,224) | ÷ | 19,073) |
| Dec 31, 2010 | 8.12% | = | 100 | × | 1,420) | ÷ | 17,489) |
| Dec 31, 2009 | 12.71% | = | 100 | × | 2,205) | ÷ | 17,354) |
| Dec 31, 2008 | 13.07% | = | 100 | × | 2,014) | ÷ | 15,405) |
| Dec 31, 2007 | 11.16% | = | 100 | × | 1,707) | ÷ | 15,294) |
| Dec 31, 2006 | 9.51% | = | 100 | × | 1,397) | ÷ | 14,686) |
| Dec 31, 2005 | 7.51% | = | 100 | × | 956) | ÷ | 12,727) |
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 performance from 2005 to 2015 is characterized by an initial period of efficiency gains, followed by increased volatility and a significant decline in asset productivity toward the end of the period.
- Asset Utilization and ROA Trends
- Between 2005 and 2008, a consistent upward trend in Return on Assets (ROA) is observed, rising from 7.51% to a peak of 13.07%. This indicates that net income growth outpaced the expansion of the asset base during this interval. Following this peak, the ROA exhibited volatility, notably dropping to 8.12% in 2010 before recovering to 11.41% by 2012.
- Impact of Asset Expansion
- A substantial increase in total assets occurred between 2012 and 2013, with the asset base growing from 20,390 million to 25,869 million. This expansion coincided with a decrease in net income, which fell from 2,326 million to 2,012 million. As a result, the ROA declined sharply to 7.78%, suggesting that the expanded asset base did not yield an immediate or proportional increase in profitability.
- Terminal Profitability Decline
- The period concluded with a severe deterioration in financial efficiency in 2015. Net income plummeted to 968 million, representing a significant decrease from the 2,497 million reported in 2014. Despite a reduction in total assets to 20,975 million in the same year, the precipitous drop in earnings led to a ten-year low ROA of 4.62%.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Baxter International Inc., ROA, 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 | 4.62% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Dec 31, 2014 | 9.63% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Dec 31, 2013 | 7.78% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Dec 31, 2012 | 11.41% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Dec 31, 2011 | 11.66% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Dec 31, 2010 | 8.12% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Dec 31, 2009 | 12.71% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Dec 31, 2008 | 13.07% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Dec 31, 2007 | 11.16% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Dec 31, 2006 | 9.51% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Dec 31, 2005 | 7.51% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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., ROA, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 4.62% | 4.93% |
| Dec 31, 2014 | 9.63% | 6.03% |
| Dec 31, 2013 | 7.78% | 6.64% |
| Dec 31, 2012 | 11.41% | 7.54% |
| Dec 31, 2011 | 11.66% | 7.54% |
| Dec 31, 2010 | 8.12% | 7.69% |
| Dec 31, 2009 | 12.71% | 8.84% |
| Dec 31, 2008 | 13.07% | 7.51% |
| Dec 31, 2007 | 11.16% | 8.92% |
| Dec 31, 2006 | 9.51% | 7.40% |
| Dec 31, 2005 | 7.51% | 7.94% |
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., ROA, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 4.62% | 7.71% |
| Dec 31, 2014 | 9.63% | 8.59% |
| Dec 31, 2013 | 7.78% | 8.76% |
| Dec 31, 2012 | 11.41% | 8.09% |
| Dec 31, 2011 | 11.66% | 7.36% |
| Dec 31, 2010 | 8.12% | 7.24% |
| Dec 31, 2009 | 12.71% | 9.73% |
| Dec 31, 2008 | 13.07% | 9.50% |
| Dec 31, 2007 | 11.16% | 8.88% |
| Dec 31, 2006 | 9.51% | 10.52% |
| Dec 31, 2005 | 7.51% | 9.67% |
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).