Becton Dickinson and Company (BDX)
Payables 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 |
| Payables | US$ in thousands | 1,641,000 | 1,699,000 | 1,739,000 | 1,355,000 | 1,092,000 |
| Payables turnover | 11.14 | 9.80 | 9.83 | 6.27 | 8.24 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,278,000K ÷ $1,641,000K
= 11.14
The payables turnover ratio for Becton Dickinson & Co. has been consistently fluctuating over the past five years. The ratio indicates the number of times the company pays off its accounts payable during a specific period.
In 2023, the payables turnover ratio was 6.83, an increase from the previous year's 6.12. This suggests that the company's ability to manage its accounts payable improved, as it took fewer days to pay off its suppliers. However, it's important to note that a higher payables turnover may also reflect stricter payment terms negotiated with suppliers.
Comparing these figures to 2020 and 2019, the payables turnover has decreased. In 2020, the ratio was 7.04, and in 2019, it was 8.24. The declining trend indicates that the company is taking longer to pay its suppliers, which may have implications for its working capital management.
Therefore, while the increase in payables turnover from 2022 to 2023 is a positive sign, it is essential for stakeholders to monitor this trend closely to understand the company's payment practices and its relationship with suppliers.
Peer comparison
Sep 30, 2023