Becton Dickinson and Company (BDX)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	9,001,000	8,991,000	8,976,000
Inventory	US$ in thousands	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	2,579,000	2,629,000	2,627,000
Inventory turnover		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	3.49	3.42	3.42

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,481,000K ÷ $3,304,000K
= 5.59

The inventory turnover ratio for Becton Dickinson & Co. has ranged between 2.78 and 3.46 over the past eight quarters. This ratio indicates how efficiently the company is managing its inventory by showing the number of times it sells and replaces its inventory within a given period.

The inventory turnover has shown a generally stable trend with minor fluctuations. The highest turnover rate of 3.46 was observed in Q1 2024, suggesting that the company effectively converted its inventory into sales during that period. On the other hand, the lowest turnover rate of 2.78 occurred in Q2 2023, indicating a slower conversion of inventory into sales during that quarter.

Overall, Becton Dickinson & Co. has maintained a moderate level of inventory turnover, which is generally considered positive as it signifies efficient inventory management and indicates that the company is not overstocked. Further analysis would be needed to understand if the variations in inventory turnover have been influenced by seasonal factors, changes in demand, or operational inefficiencies.