Baxter International (Baxter International) Inventory Turnover

: 0.85 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Baxter International's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,413 Mil. Baxter International's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,849 Mil. Baxter International's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Baxter International's Days Inventory for the three months ended in Dec. 2023 was 107.72.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Baxter International's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.73.

Baxter International Inventory Turnover Historical Data

The historical data trend for Baxter International's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Baxter International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

3.98

3.97

3.40

3.68

3.58

Baxter International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.88	0.82	0.89	0.90	0.85

Baxter International Inventory Turnover Calculation

Baxter International's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	9838	/ (	(2679	+	2824)	/	2 )
=	9838	/	2751.5
=	3.58

Baxter International's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	2413	/ (	(2873	+	2824)	/	2 )
=	2413	/	2848.5
=	0.85

Baxter International (NYSE:BAX) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Baxter International's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	2848.5	/	2413	*	365 / 4
	=	107.72

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Baxter International's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2848.5	/	3885
	=	0.73

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Baxter International Inventory Turnover Related Terms

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Baxter International (Baxter International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Baxter International Inc (NYSE:BAX) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

1BAX:Italy BTL:Germany BTL:Germany BTL:Germany BAX:Austria

Address

One Baxter Parkway, Deerfield, IL, USA, 60015

Website

https://www.baxter.com

Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.

Executives

Joel T. Grade	officer: EVP, Chief Financial Officer	SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Stephen H Rusckowski	director	C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Ampofo William A. Ii	director	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Christopher A. Toth	officer: EVP, Group Pres, Kidney Care	1252 COOLIDGE AVE., SAN JOSE CA 95125
Stroucken Albert P L	director	BAXTER INTERNATIONAL INC., ONE BAXTER PARKWAY, DEERFIELD IL 60015
Reaz Rasul	officer: EVP, Group Pres, Healthcare	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Alok Sonig	officer: EVP, Group President, Pharm	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Heather Knight	officer: EVP, Group Pres, Medical	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Jacqueline Kunzler	officer: SVP, Chief Quality Officer	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Jeanne K Mason	officer: CVP, Human Resources	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Steven Flynn	officer: SVP, President, APAC	ONE BAXTER PARKWAY, DEERFIELD IL 60015
Peter M Wilver	director
David Brent Shafer	director	2800 ROCKCREEK PARKWAY, NORTH KANSAS CITY MO 64117
Amy Mcbride Wendell	director	COVIDIEN LTD., 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Cathy R Smith	director	TARGET CORPORATION, 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403