Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Return on Assets (ROA) since 2005
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
Baxter International Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrates a slight upward trend starting from March 2011 with values around 50.7%, peaking marginally at approximately 51.65% towards the end of 2013. Following this period, a consistent decline is observed through to mid-2016, where the margin decreases to just above 40%. This indicates a gradual erosion in the efficiency of core production and sales processes over the latter years.
- Operating Profit Margin
- Operating profit margin begins at around 21.2% in early 2011 and follows a generally downward trajectory throughout the time frame. There is a noticeable decline from nearly 20% in 2013 to approximately 5% by the end of the dataset in mid-2016. This trend points to increased operating costs or reduced operational profitability, which may warrant scrutiny into cost management or revenue quality.
- Net Profit Margin
- Net profit margin remains relatively stable initially, hovering around 16% through 2013. However, from 2014 onward, the margin drops significantly to a low near 9.7% in early 2016, before sharply rising again to above 39% by mid-2016. The late dramatic increase could suggest a one-time gain, restructuring effects, or other non-recurring factors impacting net profitability.
- Return on Equity (ROE)
- ROE shows a generally downward pattern, starting from close to 34% in early 2011, declining steadily to around 11% by early 2016. This decrease implies diminishing effectiveness in generating shareholder returns from equity investment. Similar to net profit margin, there is a pronounced increase after this period, reaching over 56% mid-2016, indicating an unusual event or significant improvement affecting equity returns.
- Return on Assets (ROA)
- ROA trends mirror those of profitability margins, beginning at approximately 11.7% in 2011, declining gradually to a trough near 4.6% early in 2016. Subsequently, there is a strong rebound to around 30% by mid-2016. The initial decline signals reduced efficiency in utilizing assets to generate earnings, with the latter recovery suggesting a major change in asset utilization or profitability dynamics.
Return on Sales
Return on Investment
Gross Profit Margin
Baxter International Inc., gross profit margin 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) | |||||||||||||||||||||||||||||
| Gross margin | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| CVS Health Corp. | |||||||||||||||||||||||||||||
| 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
Gross profit margin = 100
× (Gross marginQ2 2016
+ Gross marginQ1 2016
+ Gross marginQ4 2015
+ Gross marginQ3 2015)
÷ (Net salesQ2 2016
+ Net salesQ1 2016
+ Net salesQ4 2015
+ Net salesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial trends reveals several notable patterns in the data. Gross margin values, expressed in US dollars, indicate fluctuations over the periods observed. From 2011 to 2014, there is a general upward trend in gross margin, peaking notably in the last quarter of 2014. However, starting from the first quarter of 2015, gross margin values show a marked decline, dropping substantially compared to previous years and stabilizing at lower levels through mid-2016.
Net sales exhibit a somewhat similar pattern, with steady growth from 2011 through 2014, reaching the highest figures toward the end of 2014. Post-2014, net sales also experience a significant reduction, though the decline is less pronounced than that seen in gross margin. Following the dip, net sales appear to stabilize with slight increases towards mid-2016, but they do not return to the peak levels seen in 2014.
The gross profit margin percentage, provided only for periods starting in 2011, displays an interesting trend. Initially, gross profit margin remains relatively stable and high, around or above 50% during 2011 to 2013. However, from early 2014 onward, the gross profit margin begins a gradual but steady decrease, falling below 50% and continuing to decline through 2016. By the last period available, the gross profit margin has dropped to just above 40%, suggesting reduced profitability relative to net sales.
- Summary of Trends
- - Gross margin grew consistently from 2011 through 2014, followed by a sharp decline starting in 2015, ultimately stabilizing at lower levels.
- - Net sales increased steadily until 2014, then decreased substantially in 2015, with partial recovery and stabilization through mid-2016.
- - Gross profit margin remained over 50% until 2014, after which it steadily declined to around 40% by 2016, indicating decreased profit efficiency.
- - The concurrent declines in gross margin and gross profit margin percentage despite net sales stabilization suggest rising costs or pricing pressures impacting profitability in recent periods.
Operating Profit Margin
Baxter International Inc., operating profit margin 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) | |||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| CVS Health Corp. | |||||||||||||||||||||||||||||
| 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
Operating profit margin = 100
× (Operating incomeQ2 2016
+ Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015)
÷ (Net salesQ2 2016
+ Net salesQ1 2016
+ Net salesQ4 2015
+ Net salesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the operating income, net sales, and operating profit margin over the examined periods. The data indicate fluctuations as well as a general trajectory in the company's financial performance.
- Operating Income
-
Operating income shows variability across quarters with an overall declining trend in recent periods. Initial values in 2011 ranged between 625 million and 831 million US dollars, peaking at 831 million in the second quarter of 2011. Following this, operating income experiences intermittent increases and decreases, with a general downward movement starting around 2013.
In late 2013 and through 2014, the income mostly remains within the 450 to 800 million range but shows signs of instability with sharp drops, such as the 453 million in December 2013. The decline becomes more severe from 2015 onward, with a marked decline to values below 100 million in multiple quarters and a notable low of 68 million in June 2016. This significant reduction suggests challenges in maintaining profitability during the latter part of the period.
- Net Sales
-
Net sales demonstrate a relatively stable and gradually increasing trend from 2011 through early 2015. Starting at approximately 3.3 billion US dollars in early 2011, net sales exhibit slight growth to peak around 4.4 billion by the last quarter of 2013. The trend continues with minor fluctuations, reaching over 4.4 billion in the final quarter of 2014.
However, there is a sharp decline in net sales starting in 2015 with quarterly values falling back to approximately 2.4 to 2.6 billion towards the first half of 2016. This reduction suggests a significant contraction in sales volume or pricing, meriting further investigation into market conditions or product performance during this time frame.
- Operating Profit Margin
-
The operating profit margin displays a downward trend over the entire period. Beginning in 2011 with margins above 20% during much of the year, there is a gradual decline in margin percentages through 2012 and 2013. By the end of 2013 and into 2014, margins drop below 20%, continuing steadily downward to reach approximately 4.5% to 5.5% by mid-2016.
This consistent decrease in operating profit margin reflects increasing cost pressures or decreasing operational efficiency, as profitability relative to sales steadily erodes. The sharp margin compression observed in the last few quarters aligns with the declining operating income and net sales, indicating overall diminished financial health in the most recent periods.
In summary, while net sales showed growth and relative stability until late 2014, both operating income and profit margins reflect deterioration over time. The declining profitability and shrinking sales figures in the most recent quarters indicate potential operational challenges or adverse market conditions that have negatively impacted financial performance.
Net Profit Margin
Baxter International Inc., net profit margin 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 income attributable to Baxter | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| CVS Health Corp. | |||||||||||||||||||||||||||||
| 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 profit margin = 100
× (Net income attributable to BaxterQ2 2016
+ Net income attributable to BaxterQ1 2016
+ Net income attributable to BaxterQ4 2015
+ Net income attributable to BaxterQ3 2015)
÷ (Net salesQ2 2016
+ Net salesQ1 2016
+ Net salesQ4 2015
+ Net salesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data presents apparent fluctuations across key metrics over the period analyzed. Net income attributable to the company shows a general pattern of variability, with several peaks and troughs. Early in the period, net income ranged mostly between approximately 450 to 660 million USD, indicating moderate stability. A notable spike occurs in December 2014, where net income reaches 953 million USD, followed by a sharp decline in subsequent quarters before a dramatic increase to 3,380 million USD by June 30, 2016, which significantly exceeds prior values and suggests an unusual event or one-time gain impacting that quarter.
Net sales reveal a somewhat inconsistent trajectory without a strong upward or downward trend. The sales figures hover around 3,400 to 4,400 million USD between 2011 and 2014, peaking at 4,472 million USD in December 2014. However, sales experience a pronounced decline thereafter, dropping to a range of approximately 2,375 to 2,585 million USD through mid-2016, indicating a potential contraction in market volume or divestiture of business segments in that timeframe.
Net profit margin percentages are only available starting from the first quarter of 2012. Margins begin around 16%, showing a gradual decline through 2014, reaching a low of approximately 11.29% in December 2014. Subsequently, margins demonstrate a recovery trend, rising again past 15% in early 2015. The final two recorded values in 2016, however, are anomalously high at 39.42% and 47.74%, reflecting either exceptional profitability quarters or irregular accounting effects. This aligns with the extraordinary increase in net income during the same period, reinforcing the possibility of one-off gains or significant operational changes.
Overall, the data indicates a period of volatility in profitability and sales. The sudden jumps in net income and profit margins towards the end suggest extraordinary events influencing financial outcomes distinctly from prior years. Meanwhile, the decline in sales during 2015 to 2016 calls for examination of external market conditions or strategic business shifts affecting revenue generation.
- Net Income
- Generally stable between 450-660 million USD until late 2014; marked spike at end of 2014; dramatic surge in mid-2016 to over 3 billion USD.
- Net Sales
- Relatively steady with slight growth up to late 2014; sharp decline thereafter, reaching approximately 2,400 to 2,600 million USD in 2016.
- Net Profit Margin
- Approximately 16% initially, decreasing gradually to around 11% by late 2014; recovery to mid-teens in 2015; extraordinary jump above 39% in 2016.
Return on Equity (ROE)
Baxter International Inc., ROE 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 income attributable to Baxter | |||||||||||||||||||||||||||||
| Total Baxter shareholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| CVS Health Corp. | |||||||||||||||||||||||||||||
| 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
ROE = 100
× (Net income attributable to BaxterQ2 2016
+ Net income attributable to BaxterQ1 2016
+ Net income attributable to BaxterQ4 2015
+ Net income attributable to BaxterQ3 2015)
÷ Total Baxter shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial performance reveals several notable trends over the observed periods. Net income attributable to the company exhibits significant fluctuations, with values ranging broadly from a low of 326 million US dollars to a peak of 3380 million US dollars. There is a marked spike in net income in the final quarter of 2015 (December 31, 2015) and the first two quarters of 2016, indicating an unusual surge compared to previous quarters.
Total shareholders' equity demonstrates relatively stable behavior with gradual growth across most quarters. Beginning at approximately 6734 million US dollars in the first quarter of 2011, it trends upwards moderately, peaking around 9019 million US dollars in the first quarter of 2016 before showing a small decline to 8509 million US dollars in the second quarter of 2016. This steady increase suggests consistent retention of earnings or capital injection during the period.
The Return on Equity (ROE) percentage presents a diverse pattern. It starts with very high values around 33-35% in early 2012, followed by a gradual downtrend toward the end of 2014, reaching lows near 22%. However, ROE experiences a resurgence in 2015, climbing back above 30% before descending to approximately 10.94% near the end of 2015. In the first two quarters of 2016, ROE again increases sharply, dramatically reaching 56.39% in the second quarter. This variation in ROE corresponds to the volatility observed in net income, as ROE is sensitive to changes in net income relative to shareholders' equity.
Overall, the company's profitability as expressed by net income and ROE fluctuated considerably, especially with pronounced spikes towards the end of 2015 and beginning of 2016. Shareholders' equity, by contrast, maintained a much steadier, gradually increasing profile, indicating stability in the company's net assets over time despite volatile earnings performance.
- Net Income Trends
- Experienced significant volatility with a notable surge in late 2015 and early 2016, demonstrating unusually high profitability during these periods.
- Shareholders’ Equity
- Displayed a generally consistent upward trend with gradual increases over the years, peaking in early 2016, reflecting stability in the company’s capital base.
- Return on Equity (ROE)
- Showed fluctuating performance, initially high in early 2012, declining through 2014, rebounding in 2015, and culminating in exceptionally high figures in the first half of 2016, closely mirroring net income variability.
Return on Assets (ROA)
Baxter International Inc., ROA 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 income attributable to Baxter | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| CVS Health Corp. | |||||||||||||||||||||||||||||
| 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
ROA = 100
× (Net income attributable to BaxterQ2 2016
+ Net income attributable to BaxterQ1 2016
+ Net income attributable to BaxterQ4 2015
+ Net income attributable to BaxterQ3 2015)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed financial data reveals several noteworthy trends over the observed periods. The net income attributable to the company exhibits variability with intermittent peaks and troughs. Initially, net income shows fluctuations around the mid-500 million US dollars mark until the end of 2013, followed by a general decreasing trend in 2014, bottoming out at 468 million in September 2014 before rising sharply to a peak of 953 million in December 2014. Subsequently, the net income dips again in early 2015 but then exhibits extraordinary spikes in the last two quarters of 2015 and the first two quarters of 2016, reaching an all-time high of 3,380 million US dollars in June 2016 which stands out as an outlier compared to previous quarters.
Total assets illustrate some volatility and an overall downward trend towards the latter part of the timeline. The asset base grows gradually from 17,413 million US dollars in March 2011 to peak values surpassing 25,000 million in 2013 and early 2014. After this period, assets begin to decline steadily, reaching a low of approximately 15,982 million US dollars by June 2016. The decline in total assets during the last few quarters suggests significant asset reductions or revaluations within the company.
The Return on Assets (ROA) percentage shows a trend of declining efficiency in asset utilization over time. Early data indicates ROA percentages above 11% around 2012, progressively falling to below 8% by mid-2014. After this period, ROA experiences a minor recovery, increasing slightly to around 9.5% by mid-2015, then drops sharply to 4.62% in March 2016 before climbing significantly to over 30% in June 2016. This large fluctuation correlates with the sharp increase in net income and the concurrent decline in total assets, signaling a one-time effect or extraordinary event impacting returns during that quarter.
- Net Income Trends
- Fluctuating with notable peaks in late 2014 and extraordinary spikes in 2015-2016, indicating possible non-recurring income or adjustments.
- Total Assets Trends
- Gradual increase peaking around 2013-2014 followed by a marked decline through 2015 and 2016, suggesting asset disposals or write-downs.
- Return on Assets (ROA)
- Declining trend in early years with slight recovery and severe volatility in 2016, influenced by the large variances in net income and asset base.
Overall, the data points to periods of financial instability or significant one-time transactions impacting profitability and asset base, especially in 2015 and the first half of 2016. Caution is advised when interpreting these extremes as they reflect anomalies rather than steady operational performance.