Becton Dickinson and Company (BDX)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	20,178,000	19,828,000	19,716,000	19,492,000	19,372,000	19,046,000	18,809,000	18,738,000	18,870,000	18,958,000	18,924,000	19,081,000	19,678,000	19,613,000	18,861,000	18,207,000	17,117,000	16,917,000	17,412,000	17,354,000
Receivables	US$ in thousands	3,033,000	2,596,000	2,559,000	2,267,000	2,534,000	2,414,000	2,413,000	2,282,000	2,191,000	2,218,000	2,303,000	2,177,000	2,497,000	2,078,000	2,118,000	2,370,000	2,398,000	1,993,000	2,160,000	2,074,000
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $20,178,000K ÷ $3,033,000K
= 6.65

The receivables turnover ratio for Becton Dickinson and Company has shown fluctuating trends over the past few quarters. The ratio demonstrates how efficiently the company collects its outstanding receivables during a specific period.

The ratio averaged around 8 times for the past few quarters, indicating that, on average, Becton Dickinson collected its outstanding receivables 8 times a year. The decrease or increase in the ratio from one period to another suggests changes in the company's ability to collect receivables.

A higher receivables turnover ratio is generally preferable as it indicates a shorter time to collect outstanding payments, reflecting stronger liquidity. The continual improvement in the ratio from Dec 2020 to Sep 2022 shows the company's enhanced efficiency in managing receivables during this period.

However, the slight fluctuations in the ratio from Sep 2022 to Sep 2024 suggest some variability in the company's collection efficiency, which may warrant further investigation. It would be beneficial to assess the reasons behind these changes and evaluate the company's credit policies and collection procedures to ensure optimal cash flow management.

Overall, while the receivables turnover ratio for Becton Dickinson and Company has shown some fluctuations, the company has maintained a relatively stable ability to collect outstanding receivables efficiently over the analyzed period.