Stock Analysis on Net
Stock Analysis on Net

Baxter International Inc. (NYSE:BAX)

$22.49

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

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Baxter International Inc., long-term (investment) activity ratios (quarterly data)

Microsoft Excel
Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Net fixed asset turnover
Total asset turnover
Equity turnover

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).

Net Fixed Asset Turnover
The net fixed asset turnover ratio demonstrates a generally declining trend from March 2012 through June 2015, starting around 2.48 and reaching a low of 1.51. This indicates a decreased efficiency in generating sales from fixed assets during this period. However, there is a notable recovery towards the end of 2015 and into 2016, with the ratio rising again above 2.2, suggesting improved utilization of fixed assets in generating revenue.
Total Asset Turnover
The total asset turnover ratio shows a gradual decline from 0.75 in early 2012 to a trough of approximately 0.45 in mid-2015. This decline points to a reduced ability to produce sales from total assets over this timeframe. Following this low, there is a moderate recovery during the latter part of 2015 through mid-2016, with values increasing toward 0.63, reflecting a partial improvement in asset utilization efficiency.
Equity Turnover
The equity turnover ratio experiences a downward trend over the entire period covered, descending from about 2.08 in early 2012 to just above 1.1 by mid-2016. This consistent decline suggests a reduced effectiveness in generating sales from shareholders' equity. The most significant drops occur after early 2014, with a particularly sharp decline between mid-2014 and mid-2016, indicating weakening operational leverage or increased equity base relative to sales during this time.
Overall Insights
The analysis of turnover ratios reveals a general decline in efficiency metrics over the four-year span, most pronounced in mid-2015. The downward trends in total asset and equity turnover ratios suggest challenges in asset and equity utilization to generate sales, possibly pointing to operational or market conditions affecting performance. The brief recovery observed in net fixed asset turnover and total asset turnover during late 2015 and 2016 may indicate corrective management actions or improved market conditions impacting asset productivity positively. The equity turnover's persistent decline, however, implies ongoing challenges in maximizing returns on equity investment.

Net Fixed Asset Turnover

Baxter International Inc., net fixed asset turnover calculation (quarterly data)

Microsoft Excel
Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Selected Financial Data (US$ in millions)
Net sales
Property, plant and equipment, net
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 Q2 2016 Calculation
Net fixed asset turnover = (Net salesQ2 2016 + Net salesQ1 2016 + Net salesQ4 2015 + Net salesQ3 2015) ÷ Property, plant and equipment, net
= ( + + + ) ÷ =

2 Click competitor name to see calculations.

Net Sales
The net sales figures exhibit some variability across the periods analyzed. Initially, there is a gradual upward trend from early 2012 through the end of 2013, culminating in a peak during December 2013 at 4,368 million US dollars. Following this peak, net sales continue to fluctuate, with notable declines in early 2015, where sales drop to approximately 2,403 million US dollars in March 2015. Despite this dip, a slight recovery is observed toward mid-2016, with net sales increasing modestly to 2,585 million US dollars by June 2016. Overall, the sales trend shows a cycle of growth and contraction within the observed period.
Property, Plant and Equipment, Net
The value of property, plant, and equipment displays an increasing trend from March 2012 through December 2014, rising from 5,637 million US dollars to a high of 8,698 million US dollars. After this peak, a sharp decline occurs in 2015, falling to 4,338 million US dollars by September 2015. From this point forward, the asset base remains relatively stable with minor fluctuations, maintaining values around 4,300 to 4,400 million US dollars through mid-2016. The initial steady increase followed by a significant reduction likely reflects asset disposals or revaluations during 2015.
Net Fixed Asset Turnover
The net fixed asset turnover ratio generally trends downward from 2012 through mid-2015, declining from around 2.48 to a low of approximately 1.51 by June 2015. This indicates a decreasing efficiency in generating sales from fixed assets over this period. However, a sharp increase occurs in the third quarter of 2015, with the ratio jumping to 2.73, followed by a slight decline but stabilization around 2.3 through mid-2016. This shift suggests an improvement in asset utilization coinciding with the decrease in net property, plant, and equipment during 2015, possibly due to reduced asset base or enhanced sales efficiency.

Total Asset Turnover

Baxter International Inc., total asset turnover calculation (quarterly data)

Microsoft Excel
Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Selected Financial Data (US$ in millions)
Net sales
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 Q2 2016 Calculation
Total asset turnover = (Net salesQ2 2016 + Net salesQ1 2016 + Net salesQ4 2015 + Net salesQ3 2015) ÷ Total assets
= ( + + + ) ÷ =

2 Click competitor name to see calculations.

Net Sales
Net sales exhibit a generally cyclical pattern within each year, with higher sales typically recorded in the fourth quarter. From 2012 to 2014, net sales demonstrate a gradual upward trend, increasing from 3,388 million USD in March 2012 to a peak of 4,472 million USD in December 2014. However, starting in 2015, there is a noticeable decline in sales figures, with values nearly halving compared to previous periods, dropping to around 2,400-2,600 million USD. This decline persists through mid-2016, indicating a significant reduction from earlier years.
Total Assets
Total assets increased steadily from 18,784 million USD in March 2012 to a peak of 30,015 million USD in June 2015, reflecting asset growth over this timeframe. Notably, after June 2015, total assets sharply decline to 15,982 million USD by June 2016, representing almost a 47% reduction. This contraction aligns with the period of declining net sales, suggesting possible divestitures or asset write-downs occurring during late 2015 and early 2016.
Total Asset Turnover
The total asset turnover ratio, which measures efficiency in using assets to generate sales, shows a gradual decrease from 0.75 in March 2012 to around 0.58-0.6 during 2013 and 2014. A sharp dip to 0.45 is observed in June 2015, coinciding with the peak in total assets and declining sales, indicating reduced efficiency in asset utilization. Subsequently, turnover improves somewhat, reaching 0.63 by June 2016, but remains below early-period levels, signifying partial recovery in the use of assets for generating sales despite lower asset base.
Overall Analysis
The data reveals a phase of growth in both sales and assets through 2014 and early 2015, accompanied by moderate declines in asset efficiency. Beginning mid-2015, there is a marked contraction in net sales and total assets, suggesting strategic restructuring or disposal of assets. Despite lower sales volumes and reduced asset base in 2015-2016, the rebound in asset turnover ratio indicates improved operational efficiency in asset utilization. The patterns imply that the company may have been adapting to changing market conditions or internal priorities, focusing on enhancing asset productivity during a period of downsizing.

Equity Turnover

Baxter International Inc., equity turnover calculation (quarterly data)

Microsoft Excel
Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Selected Financial Data (US$ in millions)
Net sales
Total Baxter shareholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 Q2 2016 Calculation
Equity turnover = (Net salesQ2 2016 + Net salesQ1 2016 + Net salesQ4 2015 + Net salesQ3 2015) ÷ Total Baxter shareholders’ equity
= ( + + + ) ÷ =

2 Click competitor name to see calculations.

Net Sales
The net sales exhibit fluctuations over the analyzed periods. Initially, there is a general upward trend from March 2012 through December 2013, with sales increasing from 3,388 million USD to a peak of 4,368 million USD. This is followed by continued growth into 2014, reaching 4,472 million USD by December 2014. However, starting in the first quarter of 2015, net sales show a significant decline, dropping to approximately 2,400 million USD and remaining relatively stable but lower compared to prior periods through June 2016, where sales are recorded at 2,585 million USD. This indicates a notable reduction in revenue following 2014.
Total Shareholders' Equity
Shareholders' equity presents a generally increasing trend from March 2012 through June 2016, with some variability. Beginning at 6,725 million USD in March 2012, equity rises steadily, peaking at 8,846 million USD in December 2015. There is a small decrease afterward, with equity recorded at 8,509 million USD in June 2016. Despite some fluctuations, the overall direction indicates an accumulation of equity over the assessed period.
Equity Turnover Ratio
The equity turnover ratio demonstrates a consistent downward trend over the observation period. It starts at approximately 2.08 in March 2012, maintaining values around 2.0 until late 2014. From early 2015 onward, the ratio declines steadily, reaching a low of 1.10 by December 2015. A slight recovery is noted by June 2016, marked by a ratio of 1.18. This decline suggests a decreasing efficiency in generating revenue from shareholders' equity in the later years of the dataset.
Overall Insights
The analyzed periods reveal that while shareholders’ equity grew steadily, net sales suffered a sharp decline beginning in early 2015. Concurrently, the equity turnover ratio diminished, indicating less effective use of equity to generate sales. The contrast between rising equity and declining sales efficiency may point to underlying operational or market challenges affecting sales performance. The firm’s asset base increased, but this did not translate proportionally into sales revenue after 2014. Monitoring these trends is crucial for assessing financial health and operational effectiveness.