Becton Dickinson and Company (BDX)
Working capital 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 |
| Total current assets | US$ in thousands | 8,676,000 | 8,141,000 | 8,838,000 | 8,969,000 | 6,664,000 |
| Total current liabilities | US$ in thousands | 6,641,000 | 7,811,000 | 6,626,000 | 5,836,000 | 5,655,000 |
| Working capital turnover | 9.52 | 57.18 | 8.65 | 5.13 | 17.14 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,372,000K ÷ ($8,676,000K – $6,641,000K)
= 9.52
The working capital turnover ratio measures a company's efficiency in using its working capital to generate sales. Becton Dickinson & Co.'s working capital turnover has exhibited significant fluctuations over the past five years. In 2023, the ratio stands at 9.51, indicating a substantial decrease from the previous year's figure of 57.18. This decline suggests that the company may be less efficient in utilizing its working capital to support sales generation in the current year. However, when comparing with 2021 and 2020, the 2023 ratio appears to be relatively higher, implying improved working capital efficiency. In 2019, the ratio was also lower at 17.15. These fluctuations could be driven by changes in the company's working capital management, sales volume, or a combination of both. Further analysis of the underlying reasons for these variations would provide more insights into the company's financial performance and efficiency.
Peer comparison
Sep 30, 2023