Total Asset Turnover
since 2005
Calculation
Baxter International Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.48 | = | 9,968) | ÷ | 20,975) |
| Dec 31, 2014 | 0.64 | = | 16,671) | ÷ | 25,917) |
| Dec 31, 2013 | 0.59 | = | 15,259) | ÷ | 25,869) |
| Dec 31, 2012 | 0.70 | = | 14,190) | ÷ | 20,390) |
| Dec 31, 2011 | 0.73 | = | 13,893) | ÷ | 19,073) |
| Dec 31, 2010 | 0.73 | = | 12,843) | ÷ | 17,489) |
| Dec 31, 2009 | 0.72 | = | 12,562) | ÷ | 17,354) |
| Dec 31, 2008 | 0.80 | = | 12,348) | ÷ | 15,405) |
| Dec 31, 2007 | 0.74 | = | 11,263) | ÷ | 15,294) |
| Dec 31, 2006 | 0.71 | = | 10,378) | ÷ | 14,686) |
| Dec 31, 2005 | 0.77 | = | 9,849) | ÷ | 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 analysis of asset utilization efficiency from 2005 to 2015 reveals a long-term decline in total asset turnover, characterized by an initial period of stability followed by significant volatility and a sharp downturn in the final years.
- Asset Turnover Stability (2005-2012)
- Between 2005 and 2012, the total asset turnover ratio remained relatively consistent, fluctuating within a narrow range between 0.70 and 0.80. The peak efficiency was reached in 2008 at 0.80, coinciding with a period where net sales reached $12.35 billion against total assets of $15.41 billion. This period indicates a balanced growth strategy where asset expansion was generally matched by proportional increases in revenue generation.
- Efficiency Decline (2013-2014)
- A distinct shift in asset productivity occurred in 2013, as the ratio dropped significantly to 0.59. This decline was primarily driven by a sharp increase in total assets, which rose from $20.39 billion in 2012 to $25.87 billion in 2013, far outpacing the growth in net sales. Although a modest recovery to 0.64 was observed in 2014, the efficiency levels remained well below the baseline established between 2005 and 2012.
- Contraction and Minimum Efficiency (2015)
- The most severe deterioration in asset turnover occurred in 2015, with the ratio falling to a period low of 0.48. This is attributed to a substantial contraction in net sales, which decreased from $16.67 billion to $9.97 billion. While total assets also decreased to $20.98 billion during the same period, the reduction in the asset base was not sufficient to offset the steep decline in sales, resulting in a marked decrease in the capacity to generate revenue from existing assets.
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Comparison to Competitors
Baxter International Inc., total asset turnover, 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 | 0.48 | 0.49 | 1.27 | 0.49 | 0.19 | 1.40 |
| Dec 31, 2014 | 0.64 | 0.49 | 1.18 | 0.54 | 0.45 | 1.50 |
| Dec 31, 2013 | 0.59 | 0.51 | 1.18 | 0.57 | 0.48 | 1.49 |
| Dec 31, 2012 | 0.70 | 0.59 | 1.03 | 0.54 | 0.49 | 1.36 |
| Dec 31, 2011 | 0.73 | 0.64 | 1.15 | 0.57 | 0.52 | 1.49 |
| Dec 31, 2010 | 0.73 | 0.59 | 1.15 | 0.59 | 0.56 | 1.48 |
| Dec 31, 2009 | 0.72 | 0.59 | 1.17 | 0.58 | 0.62 | 1.47 |
| Dec 31, 2008 | 0.80 | 0.70 | 1.27 | 0.59 | 0.61 | 1.44 |
| Dec 31, 2007 | 0.74 | 0.65 | 1.15 | 0.58 | 0.63 | 1.46 |
| Dec 31, 2006 | 0.71 | 0.62 | 1.08 | 0.55 | 0.57 | 1.46 |
| Dec 31, 2005 | 0.77 | 0.77 | 0.87 | 0.45 | 0.61 | 1.08 |
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., total asset turnover, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2015 | 0.48 | 0.85 |
| Dec 31, 2014 | 0.64 | 1.05 |
| Dec 31, 2013 | 0.59 | 1.04 |
| Dec 31, 2012 | 0.70 | 0.94 |
| Dec 31, 2011 | 0.73 | 1.02 |
| Dec 31, 2010 | 0.73 | 1.00 |
| Dec 31, 2009 | 0.72 | 1.03 |
| Dec 31, 2008 | 0.80 | 1.09 |
| Dec 31, 2007 | 0.74 | 1.06 |
| Dec 31, 2006 | 0.71 | 1.03 |
| Dec 31, 2005 | 0.77 | 0.88 |
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., total asset turnover, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Dec 31, 2015 | 0.48 | 0.55 |
| Dec 31, 2014 | 0.64 | 0.60 |
| Dec 31, 2013 | 0.59 | 0.58 |
| Dec 31, 2012 | 0.70 | 0.58 |
| Dec 31, 2011 | 0.73 | 0.61 |
| Dec 31, 2010 | 0.73 | 0.61 |
| Dec 31, 2009 | 0.72 | 0.55 |
| Dec 31, 2008 | 0.80 | 0.73 |
| Dec 31, 2007 | 0.74 | 0.71 |
| Dec 31, 2006 | 0.71 | 0.69 |
| Dec 31, 2005 | 0.77 | 0.66 |
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).