Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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)
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a generally declining trend from early 2012 through mid-2015. Starting at 2.51 in March 2012, the ratio gradually decreases, reaching a low point of 1.51 in June 2015. This decline suggests a reduced efficiency in generating sales from fixed assets over this period. However, in the latter part of 2015 and early 2016, there is a notable recovery with the ratio rising to 2.73 by September 2015 before slightly stabilizing around 2.3 by mid-2016. This rebound may indicate improved utilization or changes in asset base or sales performance.
- Total Asset Turnover
- The total asset turnover ratio shows fluctuations within a relatively narrow range over the observed quarters. It begins at 0.73 in March 2012, peaks slightly at 0.76 in September 2012, and then experiences a gradual decline to a low of 0.45 in June 2015, indicating a diminished ability to generate revenues from total assets during that timeframe. Post mid-2015, the ratio recovers to 0.63 by June 2016, signaling improved asset use efficiency. Overall, this measure exhibits some volatility but reflects a general decrease followed by partial recuperation.
- Equity Turnover
- Equity turnover exhibits a more consistent downward trajectory over the period analyzed. Starting from 2.11 in March 2012, the ratio dips progressively, reaching approximately 1.1 by June 2016. This decrease implies that the company is generating fewer sales dollars per unit of equity, which could be due to increased equity levels or relatively stagnant sales. There are minor fluctuations, but the dominant trend is a reduction in equity turnover, particularly marked from 2013 onward, which may warrant further examination of capital structure or sales growth dynamics.
Net Fixed Asset Turnover
Baxter International Inc., net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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).
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.
The analysis of quarterly financial data reveals discernible trends in sales performance, asset management, and operational efficiency over the observed periods.
- Net Sales
- The net sales figures exhibit moderate fluctuations across several years. Initial quarters show values generally ranging around the mid-3000s million USD, with some quarters experiencing increases up to mid-4000s million USD, particularly notable in the fourth quarter of 2013 and the fourth quarter of 2014. However, in 2015 and into mid-2016, a marked decrease in net sales is observable, descending towards the mid-2300s to 2600s million USD, indicating a possible contraction in sales volume or revenue during these more recent quarters.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment generally trends upwards over the period. Starting from approximately 5400-5500 million USD in early 2011, there is a gradual increase peaking near 8700 million USD in late 2014, reflecting ongoing investment or capital expenditure in fixed assets. However, starting in early 2015, there is a significant decline to approximately 4300-4400 million USD by mid-2016, which suggests divestitures, asset write-downs, or disposals occurring during that timeframe.
- Net Fixed Asset Turnover
- This ratio, which measures efficiency in generating sales from fixed assets, shows an interesting trend. Initial readings in 2011 are not available, but from 2011 onwards the ratio starts near 2.5 and remains steady through early 2013. Then, a consistent decline is observed through 2014 and 2015, hitting a low near 1.51 by late 2015, indicating reduced efficiency or under-utilization of fixed assets at that time. However, a rebound occurs in early 2016, with turnover rising again above 2.2, suggesting an improvement in the generation of sales relative to fixed assets, potentially aligning with the significant reduction in asset base noted previously.
Total Asset Turnover
Baxter International Inc., total asset turnover calculation (quarterly data)
| 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 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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).
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.
The financial data reveals distinct trends across the analyzed quarters in terms of net sales, total assets, and total asset turnover.
- Net Sales
- Net sales exhibited variability over the periods observed. Initially, from early 2011 through 2014, sales generally trended upwards, reaching a peak at the end of 2013 and maintaining elevated levels through 2014. However, a significant decline is noticeable starting in early 2015, with sales dropping sharply by approximately one-third relative to prior peaks. Following this reduction, net sales stabilized at a lower level through mid-2016, fluctuating modestly without showing signs of recovery to earlier highs within the data provided.
- Total Assets
- Total assets showed a growth trend from early 2011 through mid-2015, with assets increasing steadily and peaking in mid-2015. This growth suggests expansion or investment activities during this timeframe. After mid-2015, total assets underwent a marked contraction, decreasing substantially by mid-2016, nearly halving compared to the previous peak. This sharp reduction may reflect asset disposals, restructuring, or other significant balance sheet adjustments.
- Total Asset Turnover
- Total asset turnover ratios, available from late 2011 onwards, demonstrate a generally declining trend. Initially, ratios hovered around the 0.7 to 0.76 range, indicating a relatively consistent efficiency in using assets to generate sales. From 2013 onwards, a gradual decrease is observable, dropping below 0.6 by the end of 2013 and continuing downwards through 2015. The lowest points occur in 2015, with ratios falling to approximately 0.45-0.48, which coincides with the period of asset reduction and sales declines. A modest recovery in turnover appears in early 2016 but remains significantly lower than peak levels.
In summary, the company experienced growth in net sales and assets up to 2014-2015, followed by contraction in both sales and asset base in the following periods. The efficiency of asset utilization declined over time, reaching lower levels by 2015, which suggests challenges in maintaining sales generation relative to asset size during this period of contraction. The combination of these trends points to a potential phase of downsizing or strategic repositioning impacting financial performance and asset management.
Equity Turnover
Baxter International Inc., equity turnover calculation (quarterly data)
| 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 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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).
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.
The financial data reveals several notable trends over the analyzed periods. Net sales displayed fluctuations with periods of growth and decline. Starting around 3,284 million USD in the first quarter of 2011, net sales experienced moderate increases throughout 2011 and 2012, reaching peaks near 4,472 million USD in late 2014. However, from 2015 onward, sales demonstrated a downward trend, dropping to as low as approximately 2,375 million USD in early 2016 before marginally increasing to 2,585 million USD by mid-2016.
Shareholders' equity also exhibited variability. Beginning at about 6,734 million USD in early 2011, this figure rose steadily through 2013 and 2014, achieving a peak near 8,671 million USD in early 2014. Following this high point, equity dropped somewhat but remained relatively stable, oscillating around 8,000 to 9,000 million USD through 2015 and mid-2016, indicating strong capital base maintenance despite net sales volatility.
Equity turnover ratios were provided starting in late 2011. Initially, the ratio fluctuated around 2.0 up through early 2014, suggesting a consistent level of sales generated per unit of shareholders’ equity. From mid-2014 onward, the equity turnover showed a declining pattern, decreasing significantly to approximately 1.1 by late 2015 and mid-2016. This reduction implies a lower efficiency in using equity capital to generate sales during the latter periods, coinciding with the downturn observed in net sales.
- Net Sales
- Exhibited growth through 2011 to 2014, reaching a peak in late 2014, followed by a noticeable decline throughout 2015 and into 2016.
- Shareholders' Equity
- Increased steadily through 2013 and 2014, peaking around early 2014, then showed moderate decreases but remained relatively stable thereafter.
- Equity Turnover
- Stable around 2.0 from late 2011 to early 2014, then declined sharply to near 1.1 by late 2015 and mid-2016, indicating reduced effectiveness of equity in generating sales.
Overall, the data suggests that while the company maintained a solid equity base, there was a decrease in sales performance and asset utilization efficiency in the more recent quarters analyzed. The decline in equity turnover ratio highlights a need to investigate factors affecting operational efficiency and sales generation relative to equity employed.