Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, showing how much it relies on borrowed funds versus owner capital.

At 1.57x, Baxter uses more debt relative to equity, indicating a higher financial leverage position. This is well above the healthcare sector median of 0.46x, placing Baxter in the 89th percentile among its peers. The year-over-year change is not available, and the quarter-over-quarter change is also not available, so no trend can be identified from the provided data. Given the absence of trend information, the current high ratio alone points to elevated financial risk, as debt servicing could strain cash flows, but no improvement or deterioration is observable. This elevated debt level supports the overall CAUTIOUS verdict, because it suggests Baxter carries more leverage than most of its industry counterparts.

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