Becton Dickinson and Company (BDX)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,278,000 | 16,655,000 | 17,091,000 | 8,497,000 | 9,002,000 |
| Inventory | US$ in thousands | 3,273,000 | 3,224,000 | 2,743,000 | 2,743,000 | 2,579,000 |
| Inventory turnover | 5.58 | 5.17 | 6.23 | 3.10 | 3.49 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,278,000K ÷ $3,273,000K
= 5.58
The inventory turnover of Becton Dickinson & Co. has exhibited fluctuations over the past five years. The ratio decreased from 3.49 in 2019 to 3.22 in 2022 before showing a slight increase to 3.42 in 2023. This implies that, on average, the company sold and replaced its inventory approximately 3.42 times during the year 2023, compared to 3.22 times in 2022.
A higher inventory turnover ratio generally indicates efficient inventory management, as it suggests that the company is selling goods more frequently and minimizing the costs associated with storing excess inventory. Conversely, a lower ratio may indicate overstocking or potential issues with sales and distribution.
It is important to note that inventory turnover should be analyzed alongside industry benchmarks and other financial indicators to gain a comprehensive understanding of the company's operational efficiency and financial performance.
Peer comparison
Sep 30, 2023