Becton Dickinson and Company (BDX)
Total asset 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 |
| Total assets | US$ in thousands | 57,286,000 | 52,780,000 | 52,934,000 | 53,866,000 | 54,012,000 |
| Total asset turnover | 0.35 | 0.37 | 0.36 | 0.36 | 0.30 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $20,178,000K ÷ $57,286,000K
= 0.35
The total asset turnover ratio measures the efficiency of a company in generating sales revenue relative to its total assets. A higher total asset turnover ratio indicates that the company is generating more sales revenue per dollar of assets.
In the case of Becton Dickinson and Company, the total asset turnover ratio has varied over the past five years. It decreased from 0.30 in 2020 to 0.35 in 2024, with fluctuations in between. This suggests that the company's ability to convert its assets into sales revenue has improved slightly in recent years.
However, it is important to note that the total asset turnover ratio of Becton Dickinson and Company is relatively low compared to industry averages, indicating that the company may not be as efficient in utilizing its assets to generate sales revenue as some of its peers.
Further analysis of the company's operations and asset management practices may be necessary to fully understand the factors contributing to the variations in the total asset turnover ratio over the years and to identify potential areas for improvement.
Peer comparison
Sep 30, 2024