Becton Dickinson and Company (BDX)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,372,000 | 18,870,000 | 19,131,000 | 16,074,000 | 17,290,000 |
| Receivables | US$ in thousands | 2,534,000 | 2,191,000 | 2,497,000 | 2,398,000 | 2,345,000 |
| Receivables turnover | 7.64 | 8.61 | 7.66 | 6.70 | 7.37 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,372,000K ÷ $2,534,000K
= 7.64
The receivables turnover ratio measures how efficiently a company is collecting its outstanding customer credit balances during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Over the last five years, Becton Dickinson & Co.'s receivables turnover has exhibited fluctuations. The ratio decreased from 8.61 in 2022 to 7.64 in 2023, indicating a reduction in the company's ability to convert its accounts receivable into cash. This decline could be due to changes in the company's credit policies, customer payment behaviors, or changes in sales volume.
It's worth noting that despite the decrease in 2023, the receivables turnover ratio has generally remained in a relatively stable range between 7.14 and 8.61 over the past five years, which suggests that Becton Dickinson & Co. has been effective in managing its accounts receivable turnover. However, management may want to investigate the reasons behind the recent decline to ensure that the trend does not continue and potentially impact the company's liquidity and cash flow.
Peer comparison
Sep 30, 2023