Becton Dickinson and Company (BDX)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,178,000 | 19,372,000 | 18,870,000 | 19,131,000 | 16,074,000 |
| Receivables | US$ in thousands | 3,033,000 | 2,534,000 | 2,191,000 | 2,497,000 | 2,398,000 |
| Receivables turnover | 6.65 | 7.64 | 8.61 | 7.66 | 6.70 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $20,178,000K ÷ $3,033,000K
= 6.65
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. In the case of Becton Dickinson and Company, the trend of the receivables turnover ratio over the past five years shows some fluctuations.
In 2020, the receivables turnover ratio was 6.70, indicating that the company collected its outstanding receivables approximately 6.70 times during that year. Over the subsequent years, there was an improvement in the ratio, reaching a peak of 8.61 in 2022, before slightly decreasing to 6.65 in 2024.
A higher receivables turnover ratio generally indicates that a company is able to collect payments from its customers more frequently and efficiently, which is a positive sign. However, a decreasing ratio could suggest that the company is taking longer to collect payments from customers, which could potentially signal issues with credit policies or customer payments.
Overall, while Becton Dickinson and Company's receivables turnover ratio has shown some fluctuations, it is essential to further investigate the underlying reasons for these changes to better understand the company's efficiency in managing its accounts receivable.
Peer comparison
Sep 30, 2024