Stock Analysis on Net
Stock Analysis on Net

Baxter International Inc. (NYSE:BAX)

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Baxter International Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 30, 2016 56.39% = 30.02% × 1.88
Mar 31, 2016 43.44% = 22.58% × 1.92
Dec 31, 2015 10.94% = 4.62% × 2.37
Sep 30, 2015 21.93% = 8.51% × 2.58
Jun 30, 2015 27.33% = 7.27% × 3.76
Mar 31, 2015 32.67% = 9.54% × 3.43
Dec 31, 2014 30.75% = 9.63% × 3.19
Sep 30, 2014 22.25% = 7.32% × 3.04
Jun 30, 2014 22.47% = 7.59% × 2.96
Mar 31, 2014 23.25% = 7.98% × 2.91
Dec 31, 2013 23.77% = 7.78% × 3.06
Sep 30, 2013 28.13% = 8.63% × 3.26
Jun 30, 2013 30.47% = 9.34% × 3.26
Mar 31, 2013 32.90% = 11.27% × 2.92
Dec 31, 2012 33.53% = 11.41% × 2.94
Sep 30, 2012 32.19% = 11.58% × 2.78
Jun 30, 2012 34.93% = 12.40% × 2.82
Mar 31, 2012 33.34% = 11.94% × 2.79
Dec 31, 2011 33.77% = 11.66% × 2.90
Sep 30, 2011 — = — × 2.57
Jun 30, 2011 — = — × 2.54
Mar 31, 2011 — = — × 2.59

Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2016 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Baxter International Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2016 56.39% = 47.74% × 0.63 × 1.88
Mar 31, 2016 43.44% = 39.42% × 0.57 × 1.92
Dec 31, 2015 10.94% = 9.71% × 0.48 × 2.37
Sep 30, 2015 21.93% = 14.50% × 0.59 × 2.58
Jun 30, 2015 27.33% = 16.11% × 0.45 × 3.76
Mar 31, 2015 32.67% = 15.57% × 0.61 × 3.43
Dec 31, 2014 30.75% = 14.98% × 0.64 × 3.19
Sep 30, 2014 22.25% = 11.29% × 0.65 × 3.04
Jun 30, 2014 22.47% = 12.05% × 0.63 × 2.96
Mar 31, 2014 23.25% = 12.87% × 0.62 × 2.91
Dec 31, 2013 23.77% = 13.19% × 0.59 × 3.06
Sep 30, 2013 28.13% = 14.89% × 0.58 × 3.26
Jun 30, 2013 30.47% = 15.47% × 0.60 × 3.26
Mar 31, 2013 32.90% = 16.07% × 0.70 × 2.92
Dec 31, 2012 33.53% = 16.39% × 0.70 × 2.94
Sep 30, 2012 32.19% = 16.36% × 0.71 × 2.78
Jun 30, 2012 34.93% = 16.30% × 0.76 × 2.82
Mar 31, 2012 33.34% = 16.02% × 0.75 × 2.79
Dec 31, 2011 33.77% = 16.01% × 0.73 × 2.90
Sep 30, 2011 — = — × — × 2.57
Jun 30, 2011 — = — × — × 2.54
Mar 31, 2011 — = — × — × 2.59

Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2016 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Baxter International Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2016 30.02% = 47.74% × 0.63
Mar 31, 2016 22.58% = 39.42% × 0.57
Dec 31, 2015 4.62% = 9.71% × 0.48
Sep 30, 2015 8.51% = 14.50% × 0.59
Jun 30, 2015 7.27% = 16.11% × 0.45
Mar 31, 2015 9.54% = 15.57% × 0.61
Dec 31, 2014 9.63% = 14.98% × 0.64
Sep 30, 2014 7.32% = 11.29% × 0.65
Jun 30, 2014 7.59% = 12.05% × 0.63
Mar 31, 2014 7.98% = 12.87% × 0.62
Dec 31, 2013 7.78% = 13.19% × 0.59
Sep 30, 2013 8.63% = 14.89% × 0.58
Jun 30, 2013 9.34% = 15.47% × 0.60
Mar 31, 2013 11.27% = 16.07% × 0.70
Dec 31, 2012 11.41% = 16.39% × 0.70
Sep 30, 2012 11.58% = 16.36% × 0.71
Jun 30, 2012 12.40% = 16.30% × 0.76
Mar 31, 2012 11.94% = 16.02% × 0.75
Dec 31, 2011 11.66% = 16.01% × 0.73
Sep 30, 2011 — = — × —
Jun 30, 2011 — = — × —
Mar 31, 2011 — = — × —

Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2016 is the increase in profitability measured by net profit margin ratio.