BAXCAUTIOUS

Return on Equity (ROE)

-15.0%

Higher than 20% of Healthcare sector peers

Updated 80h ago

Sector Performance

20th percentile

BAX

-15.0%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Baxter’s current Return on Equity (ROE) is -15.0%, meaning the company is generating a net loss relative to the equity shareholders have invested — effectively destroying value rather than creating it.

For context, the sector median ROE is 8.9%, and Baxter sits at the 20th percentile among healthcare peers, indicating performance well below the typical company in its industry. The trend data are unavailable: the year-over-year change and quarter-over-quarter change are both marked as N/A, and there are no historical values beyond the single current figure. Because the ROE is deeply negative and the trend cannot be assessed, the level alone signals elevated financial risk — the company is losing money on the equity it holds, which raises concerns about sustainability. This weak ROE directly supports the overall CAUTIOUS verdict, as the lack of profitability relative to peers is a clear warning for investors.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BAX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BAX's Return on Equity (ROE) compare to its sector?

BAX's Return on Equity (ROE) of -15.0% compares to a Healthcare sector median of 8.9%, placing it in the 20th percentile.

Who are BAX's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.