Becton Dickinson and Company (BDX)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.65	7.64	7.70	8.60	7.64	7.89	7.79	8.21	8.61	8.55	8.22	8.76	7.88	9.44	8.91	7.68	7.14	8.49	8.06	8.37
Payables turnover	9.29	—	—	—	11.08	—	—	—	9.90	—	—	—	9.87	—	—	—	7.04	—	—	—
Working capital turnover	13.35	3.54	6.54	31.64	9.52	11.14	8.24	34.07	57.18	7.68	5.41	12.14	8.90	10.96	4.08	7.24	5.46	6.13	—	—

The activity ratios of Becton Dickinson and Company provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Becton Dickinson's inventory turnover has been relatively stable over the past few quarters, ranging between 4.05 to 6.26 times. A higher inventory turnover indicates that the company is efficiently managing its inventory levels.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently the company collects on credit sales. Becton Dickinson's receivables turnover has also shown consistency, ranging from 7.14 to 9.44 times. A higher receivables turnover suggests that the company is effectively collecting payments from customers.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Becton Dickinson's payables turnover data is incomplete but shows values ranging from 7.04 to 11.08 times. A higher payables turnover may indicate that the company is managing its payables efficiently.

4. Working Capital Turnover: This ratio evaluates how well a company utilizes its working capital to generate sales. Becton Dickinson's working capital turnover has varied significantly, with values ranging from 3.54 to 57.18 times. A higher working capital turnover signifies effective utilization of working capital to drive revenue generation.

Overall, Becton Dickinson's activity ratios demonstrate a consistent performance in managing its assets and liabilities efficiently to support revenue generation and business operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	79.64	64.12	63.28	65.25	65.69	77.93	80.63	78.85	69.96	67.63	68.71	64.36	58.35	70.76	80.78	90.04	104.95	115.83	108.92	111.17
Days of sales outstanding (DSO)	days	54.86	47.79	47.37	42.45	47.74	46.26	46.83	44.45	42.38	42.70	44.42	41.64	46.32	38.67	40.99	47.51	51.13	43.00	45.28	43.62
Number of days of payables	days	39.29	—	—	—	32.94	—	—	—	36.87	—	—	—	36.99	—	—	—	51.84	—	—	—

The days of inventory on hand (DOH) for Becton Dickinson and Company have fluctuated over the periods provided. It indicates the number of days it takes for the company to sell its average inventory over the given time frame. From September 2020 to September 2024, the DOH ranged from 58.35 days to 79.64 days, with a recent increase which may suggest slower inventory turnover or potential issues with managing inventory levels efficiently.

The days of sales outstanding (DSO) also varied during the same period, reflecting the average number of days it takes for the company to collect revenue from its sales. The DSO ranged from 38.67 days to 54.86 days, with a recent increase. A higher DSO could indicate difficulties in collecting payments promptly, potentially impacting cash flow and liquidity.

The number of days of payables data was not consistently available for all periods, and when it was reported, it showed variability. This ratio represents the number of days it takes for a company to pay its suppliers. A higher number of days of payables means the company is taking longer to settle its debts, which can sometimes be a deliberate strategy to manage cash flow.

Overall, analyzing these activity ratios together can provide insights into Becton Dickinson's operational efficiency, inventory management, accounts receivable collection practices, and supplier payment strategies. Tracking these ratios over time can help identify trends and areas for improvement in the company's working capital management.

Long-term

	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
Fixed asset turnover	2.96	3.04	2.99	2.93	2.95	2.94	2.96	3.00	3.14	3.16	2.95	2.99	3.28	3.18	3.07	2.99	2.89	2.90	3.07	3.00
Total asset turnover	0.35	0.36	0.36	0.37	0.37	0.36	0.35	0.35	0.36	0.36	0.35	0.36	0.37	0.36	0.34	0.33	0.32	0.31	0.33	0.33

Becton Dickinson and Company's fixed asset turnover ratio has shown fluctuations over the reporting periods, ranging from 2.93 to 3.28. This ratio indicates the efficiency with which the company is generating revenue from its investment in fixed assets.

The trend suggests that the company has been relatively stable in utilizing its fixed assets to generate sales, with a slight increase observed in the most recent periods. A higher fixed asset turnover ratio generally signifies better efficiency in asset utilization.

On the other hand, the total asset turnover ratio has ranged from 0.31 to 0.37, indicating the company's ability to generate sales relative to its total assets. The trend here has been relatively stable, with minor fluctuations observed.

Overall, the company's ability to generate sales from both fixed and total assets has been consistent over the periods analyzed. It is important to monitor these ratios to ensure continued efficiency in asset utilization and revenue generation.