The business behind the dividend
| Measure | BAX | Median | Formula |
|---|---|---|---|
| Return on equity | -15.6% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | -2.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-489.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $332.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | -2.7% | 15.0% | Operating income ÷ revenue |
| Net margin | -8.5% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.54x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | -1.06x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 2.31x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 2.42x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | -15.6% | -9.3% | 31.6% | -41.7% | 14.1% | 12.7% | 12.7% | 19.7% | 6.6% | 59.9% | 12.7% |
| Return on capital employed | -2.0% | 0.1% | 3.2% | -12.6% | 5.0% | 10.8% | 14.0% | 14.0% | 10.2% | 6.7% | 5.0% |
| Operating margin | -2.7% | 0.1% | 6.8% | -28.3% | 11.1% | 13.8% | 15.6% | 14.3% | 12.2% | 7.3% | 7.3% |
| Net margin | -8.5% | -6.1% | 25.6% | -24.2% | 10.6% | 9.4% | 8.8% | 13.9% | 5.7% | 48.9% | 8.8% |
| Debt to equity | 1.54x | 1.89x | 1.65x | 2.86x | 1.96x | 0.72x | 0.61x | 0.44x | 0.38x | 0.34x | 0.72x |
| Current ratio | 2.31x | 1.36x | 1.48x | 1.69x | 2.09x | 2.52x | 2.32x | 2.12x | 2.57x | 2.40x | 2.12x |
| Cash conversion | — | — | 0.65x | — | 1.73x | 1.70x | 2.10x | 1.30x | 2.85x | 0.33x | 1.70x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Baxter International pays out less than 3 of them. The median for that group is 39.3%, against this company’s 104.8%.
Closest on free cash flow
- Iradimed (IRMD) 87.5%
- Pfizer (PFE) 107.7%
- 3M (MMM) 111.9%
- Humana (HUM) 114.7%
Same sector and same denominator, so the figures are comparable. All 44 in health care →