Becton Dickinson and Company (BDX)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	17,612,000	18,530,000	18,624,000	18,481,000	18,186,000	16,806,000	16,551,000	16,684,000	16,820,000	17,071,000	17,308,000	17,211,000	17,158,000	15,202,000	13,081,000	11,407,000	9,540,000	9,280,000	9,360,000	9,062,000
Inventory	US$ in thousands	3,843,000	3,255,000	3,229,000	3,304,000	3,273,000	3,588,000	3,656,000	3,604,000	3,224,000	3,163,000	3,258,000	3,035,000	2,743,000	2,947,000	2,895,000	2,814,000	2,743,000	2,945,000	2,793,000	2,760,000
Inventory turnover		4.58	5.69	5.77	5.59	5.56	4.68	4.53	4.63	5.22	5.40	5.31	5.67	6.26	5.16	4.52	4.05	3.48	3.15	3.35	3.28

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,612,000K ÷ $3,843,000K
= 4.58

Becton Dickinson and Company's inventory turnover has exhibited fluctuating trends over the past several quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by showing how many times it sells and replaces inventory during a specific period.

From September 2020 to June 2021, the inventory turnover ratio ranged between 4.52 to 6.26, showing some inconsistency in managing inventory levels efficiently. However, from September 2021 to March 2023, the turnover improved steadily, reaching a peak of 5.77 in March 2024. This indicates a positive trend in managing inventory more effectively during this period.

In the most recent quarters, the inventory turnover has slightly decreased, with the latest reported turnover being 4.58 in September 2024. While the ratio is still relatively high compared to previous years, this declining trend might be worth monitoring to ensure that there are no underlying issues affecting inventory management efficiency.

Overall, Becton Dickinson and Company has shown some improvements in inventory turnover over the past few years, but it is important for the company to continue monitoring and optimizing its inventory management practices to sustain its operational efficiency.