BAXCAUTIOUS

BAX Current Ratio Analysis

1.95x

Higher than 55% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.95x means Baxter holds $1.95 in current assets (like cash and inventory) for every $1 of current liabilities due within a year, showing the firm can cover near-term obligations.

Sector Performance

55th percentile

BAX

1.95x

Sector Median

1.90x

Sector Avg

2.42x

Prior Period

1.85x(Jul 2026)

↑ Improving
📊

Deep Analysis

The current ratio of 1.95x means Baxter holds $1.95 in current assets (like cash and inventory) for every $1 of current liabilities due within a year, showing the firm can cover near-term obligations.

This sits just above the healthcare sector median of 1.93x, placing Baxter at the 52th percentile among peers, so liquidity is broadly in line with the industry. The year-over-year change is not available, but the quarter-over-quarter shift is +5.4%, moving from 1.85x to 1.95x in the most recent period. That combination of a sector-average level with a recent improvement suggests modest financial flexibility, but not enough to signal a major shift in risk. For an investor, the ratio indicates Baxter is not under immediate liquidity strain, yet it also offers no special buffer beyond its peers. This metric supports the overall CAUTIOUS verdict: adequate liquidity is reassuring, but it does not offset other concerns that keep the outlook cautious.

Frequently Asked Questions

What does the Current Ratio tell investors about BAX?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does BAX's Current Ratio compare to its sector?

BAX's Current Ratio of 1.95x compares to a Healthcare sector median of 1.90x, placing it in the 55th percentile.

Who are BAX's closest peers by Current Ratio?

The closest Healthcare peers by Current Ratio include: BSX (1.90x), RVTY (1.72x), A (2.10x), HIMS (1.69x), DGX (1.59x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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BAX

1.95x

Sector Median

1.90x

Sector Avg

2.42x

How BAX's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.