Becton Dickinson and Company (BDX)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		6.65	7.64	7.70	8.60	7.64	7.89	7.79	8.21	8.61	8.55	8.22	8.76	7.88	9.44	8.91	7.68	7.14	8.49	8.06	8.37
DSO	days	54.86	47.79	47.37	42.45	47.74	46.26	46.83	44.45	42.38	42.70	44.42	41.64	46.32	38.67	40.99	47.51	51.13	43.00	45.28	43.62

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.65
= 54.86

Based on the data provided for Becton Dickinson and Company's days of sales outstanding (DSO) over the past several quarters, we observe fluctuations in the collection efficiency of the company. DSO measures the average number of days it takes for a company to collect payment after making a sale.

From Dec 31, 2019, to Mar 31, 2020, there was an increase in DSO, indicating a potential delay in collecting receivables. However, from Mar 31, 2020, to Sep 30, 2020, there was a downward trend in DSO, suggesting improved efficiency in collecting payments.

The DSO then fluctuated between 38.67 days and 47.74 days from Sep 30, 2020, to Sep 30, 2022, exhibiting some variability in the company's collection practices. Notably, from Mar 31, 2021, to Jun 30, 2021, there was a significant decrease in DSO, reflecting enhanced collection efforts during that period.

From Sep 30, 2022, to Dec 31, 2023, DSO remained relatively stable, hovering around the mid-40s range. There was a slight increase in DSO from Dec 31, 2023, to Sep 30, 2024, indicating a potential slowing down in the collection process during that period.

Overall, analyzing the trend in DSO can provide insights into Becton Dickinson and Company's accounts receivable management and efficiency in converting credit sales into cash. A decreasing trend in DSO generally implies effective credit management, while increasing DSO may suggest credit or collection issues that need attention.