Becton Dickinson and Company (BDX)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	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	7.37	7.71	7.47
Payables turnover	—	11.08	—	—	—	9.90	—	—	—	9.87	—	—	—	7.04	—	—	—	8.24	—	—
Working capital turnover	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	—	—	17.13	31.45	—

Inventory turnover for Becton Dickinson & Co. has been relatively stable over the past eight quarters, ranging from 2.78 to 3.46. This indicates that the company efficiently manages its inventory levels and turns over its inventory approximately three to four times a year on average.

Receivables turnover has also been consistent over the same period, with values fluctuating between 7.57 and 8.92. This suggests that Becton Dickinson efficiently collects payments from its customers, with the company converting its accounts receivable into cash roughly eight times a year.

Payables turnover data is incomplete, with data only available for Q4 2022 and Q3 2022, showing values of 6.12 and 6.83, respectively. This indicates that the company pays its suppliers approximately six to seven times a year. However, more recent data for a comprehensive analysis would be required to draw more meaningful conclusions.

Working capital turnover has varied significantly over the quarters, ranging from 5.73 to 57.18. A high working capital turnover indicates that the company efficiently utilizes its working capital to generate sales revenue. However, significant fluctuations in this ratio could indicate seasonal variations or changes in the company's business operations that impact the efficiency of working capital management. Further analysis over a longer period may be needed to understand the underlying factors driving these fluctuations in working capital turnover.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	104.58	106.73	106.82
Days of sales outstanding (DSO)	days	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	49.51	47.37	48.83
Number of days of payables	days	—	32.94	—	—	—	36.87	—	—	—	36.99	—	—	—	51.84	—	—	—	44.28	—	—

Becton Dickinson & Co.'s activity ratios reflect the efficiency with which the company manages its inventory, collects receivables, and pays its suppliers. The Days of Inventory on Hand (DOH) has shown some fluctuations over the quarters, with a peak of 131.46 days in Q2 2023 and a low of 105.53 days in Q1 2024. A decreasing trend in DOH indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient inventory management.

In terms of Days of Sales Outstanding (DSO), Becton Dickinson & Co. has also experienced variations from quarter to quarter, ranging from a low of 40.92 days in Q3 2022 to a high of 48.20 days in Q2 2023. A lower DSO suggests that the company is collecting receivables faster, improving its cash flow and liquidity position.

The number of days of payables information is missing for some quarters, making it challenging to assess the company's payment practices to suppliers accurately. However, the available data suggests an increase in days of payables from 53.47 days in Q4 2023 to 59.67 days in Q4 2022. This trend may indicate that Becton Dickinson & Co. is taking longer to pay its suppliers, potentially benefiting from improved cash flows or negotiating better payment terms.

Overall, analyzing these activity ratios provides insights into Becton Dickinson & Co.'s operational efficiency and working capital management. The company should continue to monitor and optimize these ratios to enhance financial performance and strengthen its competitive position.

Long-term

	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
Fixed asset turnover	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	3.06	3.08	3.11
Total asset turnover	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	0.33	0.33	0.32

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Looking at Becton Dickinson & Co.'s fixed asset turnover ratios over the past eight quarters, we observe a slight fluctuation between 2.86 and 3.29. The company's fixed asset turnover has generally remained above 2.85, showing that it has been effectively using its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio measures how efficiently a company is using all of its assets to generate sales. Becton Dickinson & Co.'s total asset turnover ratios have ranged from 0.34 to 0.37 over the same period. The consistency in these ratios suggests that the company has been maintaining a stable level of efficiency in generating revenue from its total assets.

In conclusion, Becton Dickinson & Co. has demonstrated efficient utilization of both its fixed assets and total assets in generating sales revenue over the past eight quarters, as indicated by its relatively stable and satisfactory turnover ratios.