Becton Dickinson and Company (BDX)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	20,178,000	19,828,000	19,716,000	19,492,000	19,372,000	19,046,000	18,809,000	18,738,000	18,870,000	18,958,000	18,924,000	19,081,000	19,678,000	19,613,000	18,861,000	18,207,000	17,117,000	16,917,000	17,412,000	17,354,000
Property, plant and equipment	US$ in thousands	6,821,000	6,518,000	6,591,000	6,647,000	6,557,000	6,474,000	6,356,000	6,247,000	6,012,000	6,005,000	6,406,000	6,384,000	6,003,000	6,164,000	6,142,000	6,096,000	5,923,000	5,841,000	5,664,000	5,782,000
Fixed asset turnover		2.96	3.04	2.99	2.93	2.95	2.94	2.96	3.00	3.14	3.16	2.95	2.99	3.28	3.18	3.07	2.99	2.89	2.90	3.07	3.00

September 30, 2024 calculation

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

Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. For Becton Dickinson and Company, the fixed asset turnover ratio has shown some fluctuation over the past few quarters.

The trend in the fixed asset turnover ratio for Becton Dickinson and Company has been relatively stable, with values ranging from 2.89 to 3.28 over the past eight quarters. This indicates that the company is effectively using its fixed assets to generate sales revenue.

A higher fixed asset turnover ratio implies that the company is more efficient in utilizing its fixed assets to generate revenue. Becton Dickinson and Company has shown consistent ratios above 2.90, indicating that it is efficiently converting its investment in fixed assets into revenue.

It is important for investors and stakeholders to monitor the fixed asset turnover ratio as it provides insights into the company's operational efficiency and asset utilization. Overall, based on the trend observed in Becton Dickinson and Company's fixed asset turnover ratio, the company appears to be effectively leveraging its fixed assets to drive revenue generation.