Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Baxter International Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Baxter International Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Baxter International Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Baxter International Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Baxter International Inc. ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Baxter International Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Gross Profit Margin
Baxter International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | 4,146) | 8,157) | 7,595) | 7,301) | 7,046) | |
| Net sales | 9,968) | 16,671) | 15,259) | 14,190) | 13,893) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 41.59% | 48.93% | 49.77% | 51.45% | 50.72% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health 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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 4,146 ÷ 9,968 = 41.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Baxter International Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Operating Profit Margin
Baxter International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 449) | 2,707) | 2,668) | 2,821) | 2,946) | |
| Net sales | 9,968) | 16,671) | 15,259) | 14,190) | 13,893) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 4.50% | 16.24% | 17.48% | 19.88% | 21.20% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health 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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 449 ÷ 9,968 = 4.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Baxter International Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Net Profit Margin
Baxter International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Baxter | 968) | 2,497) | 2,012) | 2,326) | 2,224) | |
| Net sales | 9,968) | 16,671) | 15,259) | 14,190) | 13,893) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 9.71% | 14.98% | 13.19% | 16.39% | 16.01% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health 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
Net profit margin = 100 × Net income attributable to Baxter ÷ Net sales
= 100 × 968 ÷ 9,968 = 9.71%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Baxter International Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Return on Equity (ROE)
Baxter International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Baxter | 968) | 2,497) | 2,012) | 2,326) | 2,224) | |
| Total Baxter shareholders’ equity | 8,846) | 8,120) | 8,463) | 6,938) | 6,585) | |
| Profitability Ratio | ||||||
| ROE1 | 10.94% | 30.75% | 23.77% | 33.53% | 33.77% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health 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
ROE = 100 × Net income attributable to Baxter ÷ Total Baxter shareholders’ equity
= 100 × 968 ÷ 8,846 = 10.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Baxter International Inc. ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Return on Assets (ROA)
Baxter International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Baxter | 968) | 2,497) | 2,012) | 2,326) | 2,224) | |
| Total assets | 20,975) | 25,917) | 25,869) | 20,390) | 19,073) | |
| Profitability Ratio | ||||||
| ROA1 | 4.62% | 9.63% | 7.78% | 11.41% | 11.66% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health 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
ROA = 100 × Net income attributable to Baxter ÷ Total assets
= 100 × 968 ÷ 20,975 = 4.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Baxter International Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |