Becton Dickinson and Company (BDX)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,372,000 | 18,870,000 | 19,131,000 | 16,074,000 | 17,290,000 |
| Property, plant and equipment | US$ in thousands | 6,557,000 | 6,012,000 | 6,003,000 | 5,923,000 | 5,659,000 |
| Fixed asset turnover | 2.95 | 3.14 | 3.19 | 2.71 | 3.06 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,372,000K ÷ $6,557,000K
= 2.95
The fixed asset turnover ratio for Becton Dickinson & Co. has shown some fluctuation over the past five years. The ratio measures the productivity of the company's investment in fixed assets, indicating how efficiently the company is generating sales revenue from its investment in property, plant, and equipment.
In 2023, the fixed asset turnover ratio was 2.95, which represents a decrease from the previous year's 3.14. This decrease suggests that the company generated $2.95 in sales for every $1 invested in fixed assets, down from $3.14 the year before. While the ratio has shown some variability over the years, it generally indicates that the company has been able to efficiently utilize its fixed assets to generate revenue.
The fluctuation in the fixed asset turnover ratio should be further investigated to understand the underlying reasons for the changes. It is important to assess whether these fluctuations are driven by changes in sales, increases in the level of fixed assets, or a combination of both. Additionally, a comparison with industry benchmarks and competitors' ratios can provide further insights into the company's performance in utilizing its fixed assets.
Peer comparison
Sep 30, 2023