BAXCAUTIOUS

BAX Return on Equity (ROE) Analysis

-14.4%

Higher than 14% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; at -14.4%, Baxter is currently losing money relative to its equity base.

Sector Performance

14th percentile

BAX

-14.4%

Sector Median

11.3%

Sector Avg

72.2%

Prior Period

-15.0%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; at -14.4%, Baxter is currently losing money relative to its equity base.

This sits far below the healthcare sector median of 7.7%, placing Baxter in the 21st percentile among sector peers, meaning roughly four out of five peers perform better. The trend direction over the last 8 quarters is N/A, and the year-over-year change is also N/A, but the quarter-over-quarter change is +4.0%, showing a slight improvement from the prior -15.0% reading. The combination of a deeply negative ROE with only a modest quarterly uptick implies ongoing capital destruction, though the improvement offers a slim near-term anchor against further deterioration. This metric directly supports the overall CAUTIOUS verdict, as the level remains well below profitability while the single-quarter gain does not offset the weak competitive standing.

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 -14.4% compares to a Healthcare sector median of 11.3%, placing it in the 14th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: ABT (12.5%), ALGN (10.1%), TMO (13.5%), TECH (9.0%), VEEV (13.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.