BAX Debt-to-Equity Ratio Analysis

The debt-to-equity ratio of 1.52x means Baxter carries $1.52 of debt for every $1 of shareholder equity, indicating heavy reliance on borrowed funds.

This is far above the healthcare sector median of 0.45x, placing Baxter in the 88th percentile among peers, so most comparable companies operate with much less leverage. The year-over-year change is not available, but the quarter-over-quarter change shows a 3.2% decline, with the metric moving from 1.57x to 1.52x. While the current leverage is high, the recent downward trend suggests a mild reduction in debt burden relative to equity. That combination — a high level with only a slight quarterly improvement — implies ongoing financial risk, as Baxter remains more vulnerable to interest-rate changes or earnings shortfalls than its sector peers. This metric supports the overall CAUTIOUS verdict, since the elevated debt position reinforces concerns about balance sheet stability despite the small recent improvement.

Frequently Asked Questions

Closest Sector Peers