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.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Baxter International Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Turnover Ratios
Inventory turnover 3.63 2.39 2.19 2.46 2.61
Receivables turnover 5.76 5.95 5.24 5.85 5.74
Payables turnover 8.13 6.74 6.95 8.99 8.61
Working capital turnover 1.65 3.87 3.72 3.15 3.66
Average No. Days
Average inventory processing period 101 153 167 149 140
Add: Average receivable collection period 63 61 70 62 64
Operating cycle 164 214 237 211 204
Less: Average payables payment period 45 54 53 41 42
Cash conversion cycle 119 160 184 170 162

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Baxter International Inc. inventory turnover ratio improved from 2013 to 2014 and from 2014 to 2015.
Receivables turnover An activity ratio equal to revenue divided by receivables. Baxter International Inc. receivables turnover ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Baxter International Inc. payables turnover ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Baxter International Inc. working capital turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Baxter International Inc. number of days of inventory outstanding improved from 2013 to 2014 and from 2014 to 2015.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Baxter International Inc. number of days of receivables outstanding improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Baxter International Inc. operating cycle improved from 2013 to 2014 and from 2014 to 2015.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Baxter International Inc. number of days of payables outstanding increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Baxter International Inc. cash conversion cycle improved from 2013 to 2014 and from 2014 to 2015.

Inventory Turnover

Baxter International Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Cost of sales 5,822 8,514 7,664 6,889 6,847
Inventories 1,604 3,559 3,499 2,803 2,628
Short-term Activity Ratio
Inventory turnover1 3.63 2.39 2.19 2.46 2.61
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Intuitive Surgical Inc.
Medtronic PLC

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).

1 2015 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 5,822 ÷ 1,604 = 3.63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Baxter International Inc. inventory turnover ratio improved from 2013 to 2014 and from 2014 to 2015.

Receivables Turnover

Baxter International Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net sales 9,968 16,671 15,259 14,190 13,893
Accounts and other current receivables, net 1,731 2,803 2,911 2,425 2,420
Short-term Activity Ratio
Receivables turnover1 5.76 5.95 5.24 5.85 5.74
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 2015 Calculation
Receivables turnover = Net sales ÷ Accounts and other current receivables, net
= 9,968 ÷ 1,731 = 5.76

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Baxter International Inc. receivables turnover ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.

Payables Turnover

Baxter International Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Cost of sales 5,822 8,514 7,664 6,889 6,847
Accounts payable, principally trade 716 1,264 1,103 766 795
Short-term Activity Ratio
Payables turnover1 8.13 6.74 6.95 8.99 8.61
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 2015 Calculation
Payables turnover = Cost of sales ÷ Accounts payable, principally trade
= 5,822 ÷ 716 = 8.13

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Baxter International Inc. payables turnover ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.

Working Capital Turnover

Baxter International Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Current assets 11,796 10,351 10,004 9,260 8,650
Less: Current liabilities 5,750 6,042 5,906 4,759 4,857
Working capital 6,046 4,309 4,098 4,501 3,793
 
Net sales 9,968 16,671 15,259 14,190 13,893
Short-term Activity Ratio
Working capital turnover1 1.65 3.87 3.72 3.15 3.66
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 2015 Calculation
Working capital turnover = Net sales ÷ Working capital
= 9,968 ÷ 6,046 = 1.65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Baxter International Inc. working capital turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Average Inventory Processing Period

Baxter International Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data
Inventory turnover 3.63 2.39 2.19 2.46 2.61
Short-term Activity Ratio (no. days)
Average inventory processing period1 101 153 167 149 140
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Intuitive Surgical Inc.
Medtronic PLC

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).

1 2015 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.63 = 101

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Baxter International Inc. number of days of inventory outstanding improved from 2013 to 2014 and from 2014 to 2015.

Average Receivable Collection Period

Baxter International Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data
Receivables turnover 5.76 5.95 5.24 5.85 5.74
Short-term Activity Ratio (no. days)
Average receivable collection period1 63 61 70 62 64
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 2015 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.76 = 63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Baxter International Inc. number of days of receivables outstanding improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.

Operating Cycle

Baxter International Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data
Average inventory processing period 101 153 167 149 140
Average receivable collection period 63 61 70 62 64
Short-term Activity Ratio
Operating cycle1 164 214 237 211 204
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Intuitive Surgical Inc.
Medtronic PLC

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).

1 2015 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 101 + 63 = 164

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Baxter International Inc. operating cycle improved from 2013 to 2014 and from 2014 to 2015.

Average Payables Payment Period

Baxter International Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data
Payables turnover 8.13 6.74 6.95 8.99 8.61
Short-term Activity Ratio (no. days)
Average payables payment period1 45 54 53 41 42
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 2015 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.13 = 45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Baxter International Inc. number of days of payables outstanding increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Cash Conversion Cycle

Baxter International Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data
Average inventory processing period 101 153 167 149 140
Average receivable collection period 63 61 70 62 64
Average payables payment period 45 54 53 41 42
Short-term Activity Ratio
Cash conversion cycle1 119 160 184 170 162
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Danaher Corp.
Intuitive Surgical Inc.
Medtronic PLC

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).

1 2015 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 101 + 6345 = 119

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Baxter International Inc. cash conversion cycle improved from 2013 to 2014 and from 2014 to 2015.