Is the business good?
How good a business is BAX?
Baxter International earns −4.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−4.9%
Return on invested capital · cost of capital 9.0% · 14 points below what the capital costs: growth destroys value
- Operating margin
- −2.6%
Operating margin · Medical Instruments & Supplies median 5.8% · 12 months to Q1 2026
- Share count, year on year
- +0.19%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 4.6%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 11% |
| FY2022 | −28% |
| FY2023 | 6.8% |
| FY2024 | 0.13% |
| FY2025 | −2.7% |
Details›
- Gross margin12 months to Q1 2026
- 30%
- Operating margin12 months to Q1 2026
- −2.6%
- Net margin12 months to Q1 2026
- −9.7%
- R&D as % of revenue
- 4.6%
- Revenue, trailing twelve months
- $11.3B
- Net income, trailing twelve months
- −$1.10B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −4.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Instruments & Supplies
Ranks #20 of 27 by Smart Score