Return on Equity (ROE)
since 2005
Calculation
Baxter International Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Baxter1 | ÷ | Total Baxter shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 10.94% | = | 100 | × | 968) | ÷ | 8,846) |
| Dec 31, 2014 | 30.75% | = | 100 | × | 2,497) | ÷ | 8,120) |
| Dec 31, 2013 | 23.77% | = | 100 | × | 2,012) | ÷ | 8,463) |
| Dec 31, 2012 | 33.53% | = | 100 | × | 2,326) | ÷ | 6,938) |
| Dec 31, 2011 | 33.77% | = | 100 | × | 2,224) | ÷ | 6,585) |
| Dec 31, 2010 | 21.62% | = | 100 | × | 1,420) | ÷ | 6,567) |
| Dec 31, 2009 | 30.66% | = | 100 | × | 2,205) | ÷ | 7,191) |
| Dec 31, 2008 | 32.33% | = | 100 | × | 2,014) | ÷ | 6,229) |
| Dec 31, 2007 | 24.68% | = | 100 | × | 1,707) | ÷ | 6,916) |
| Dec 31, 2006 | 22.27% | = | 100 | × | 1,397) | ÷ | 6,272) |
| Dec 31, 2005 | 22.24% | = | 100 | × | 956) | ÷ | 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 net income attributable to the company exhibits a generally positive growth trend from 2005 through 2014, with some fluctuations in magnitude. Starting at 956 million US dollars in 2005, net income increased significantly each year, reaching a peak of 2,497 million US dollars in 2014. Notable declines occurred in 2010 and then sharply in 2015, where net income dropped to 1,420 million US dollars and 968 million US dollars respectively. Despite these decreases, the general trajectory over the decade was upward until the last year reported.
Total shareholders’ equity follows a broadly upward progression over the eleven-year period. Beginning at 4,299 million US dollars in 2005, it rose steadily to 8,846 million US dollars by 2015. Although there were minor declines in certain years (notably 2008 and 2010), the overall trend indicates an increase in the equity base, suggesting growth in retained earnings and possibly additional equity injections over time.
The return on equity (ROE) percentage demonstrates variability yet remains relatively strong for most of the period analyzed. ROE increased from 22.24% in 2005, peaking at 33.77% in 2011, indicating effective use of equity to generate profits during these years. After 2011, ROE showed a declining trend with a significant drop in 2015 to 10.94%, reflecting the steep fall in net income that year. This decline may point to issues such as reduced profitability or inefficiencies in capital utilization.
In summary, the financial data over the period indicates sustained growth in net income and equity until 2014, with strong returns on equity. However, the sharp downturn in net income and ROE in 2015 marks a departure from previous trends and could signal emerging challenges in profitability or operational performance that warrant closer examination.
Comparison to Competitors
Baxter International Inc., ROE, long-term trends, comparison to competitors
| Baxter International Inc. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 10.94% | 20.85% | 14.08% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 30.75% | 10.61% | 12.23% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 23.77% | 10.23% | 12.10% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 33.53% | 22.32% | 10.28% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 33.77% | 19.35% | 9.10% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 21.62% | 20.66% | 9.09% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 30.66% | 25.14% | 10.33% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 32.33% | 27.92% | 9.29% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 24.68% | 20.28% | 8.42% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 22.27% | 12.22% | 13.80% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 22.24% | 23.39% | 14.70% | 9.86% | 21.27% | 17.26% | 18.61% |
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).
Comparison to Sector (Health Care Equipment & Services)
Baxter International Inc., ROE, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 10.94% | 12.32% |
| Dec 31, 2014 | 30.75% | 13.38% |
| Dec 31, 2013 | 23.77% | 13.66% |
| Dec 31, 2012 | 33.53% | 15.91% |
| Dec 31, 2011 | 33.77% | 14.75% |
| Dec 31, 2010 | 21.62% | 15.08% |
| Dec 31, 2009 | 30.66% | 16.80% |
| Dec 31, 2008 | 32.33% | 14.94% |
| Dec 31, 2007 | 24.68% | 16.53% |
| Dec 31, 2006 | 22.27% | 16.33% |
| Dec 31, 2005 | 22.24% | 16.05% |
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., ROE, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 10.94% | 18.18% |
| Dec 31, 2014 | 30.75% | 18.58% |
| Dec 31, 2013 | 23.77% | 18.25% |
| Dec 31, 2012 | 33.53% | 17.51% |
| Dec 31, 2011 | 33.77% | 15.27% |
| Dec 31, 2010 | 21.62% | 14.32% |
| Dec 31, 2009 | 30.66% | 19.27% |
| Dec 31, 2008 | 32.33% | 19.00% |
| Dec 31, 2007 | 24.68% | 16.88% |
| Dec 31, 2006 | 22.27% | 20.24% |
| Dec 31, 2005 | 22.24% | 18.16% |
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).