Becton Dickinson and Company (BDX)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 17,803,000 | 18,278,000 | 16,655,000 | 17,091,000 | 8,497,000 |
| Payables | US$ in thousands | 1,896,000 | 1,641,000 | 1,699,000 | 1,739,000 | 1,355,000 |
| Payables turnover | 9.39 | 11.14 | 9.80 | 9.83 | 6.27 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $17,803,000K ÷ $1,896,000K
= 9.39
The payables turnover ratio for Becton Dickinson and Company has shown a fluctuating trend over the past five years. In 2024, the payables turnover ratio decreased to 9.39 from 11.14 in 2023. This indicates that the company took longer to pay its suppliers in 2024 compared to the previous year.
Although the ratio decreased in 2024, it remained relatively high compared to 2020 and 2021, which indicates that the company manages its accounts payable efficiently. The payables turnover ratio measures how many times a company pays its suppliers within a specific period, with a higher ratio generally indicating a more efficient use of working capital and stronger supplier relationships.
Overall, while the slight decrease in the payables turnover ratio may suggest a slower payment to suppliers in 2024, the company's historical performance indicates a generally efficient management of accounts payable over the past five years.
Peer comparison
Sep 30, 2024