Becton Dickinson and Company (BDX)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	20,178,000	19,372,000	18,870,000	19,131,000	16,074,000
Property, plant and equipment	US$ in thousands	6,821,000	6,557,000	6,012,000	6,003,000	5,923,000
Fixed asset turnover		2.96	2.95	3.14	3.19	2.71

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,178,000K ÷ $6,821,000K
= 2.96

Becton Dickinson and Company's fixed asset turnover ratio has shown a fluctuating trend over the past five years, ranging from 2.71 to 3.19. The ratio indicates how efficiently the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is using its fixed assets more efficiently to generate sales.

In 2024, the fixed asset turnover ratio was 2.96, a slight increase from the previous year. This indicates that for each dollar invested in fixed assets, the company generated $2.96 in sales during the year. Although the ratio decreased slightly, it remained relatively stable compared to the prior year.

In 2023, the fixed asset turnover ratio was 2.95, showing a marginal decrease from the previous year. Despite the slight decline, the company continued to efficiently generate revenue from its fixed assets.

In 2022, the fixed asset turnover ratio was 3.14, reflecting an increase in asset utilization efficiency. This indicates that the company generated more sales for each dollar invested in fixed assets compared to the previous year.

In 2021, the fixed asset turnover ratio was 3.19, the highest among the five years analyzed. This suggests that the company significantly improved its efficiency in utilizing fixed assets to generate sales.

In 2020, the fixed asset turnover ratio was 2.71, showing lower efficiency in generating sales from fixed assets compared to the most recent years. Despite the decrease, the company still managed to generate sales from its fixed assets, albeit at a slightly lower rate.

Overall, Becton Dickinson and Company's fixed asset turnover ratio has demonstrated a varying trend over the past five years, indicating fluctuations in the company's efficiency in utilizing fixed assets to generate revenue. Further analysis of the company's operating performance and investment in fixed assets can provide a more comprehensive understanding of its financial health and operational efficiency.