Becton Dickinson and Company (BDX)

Working capital 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 current assets	US$ in thousands	10,468,000	8,676,000	8,141,000	8,838,000	8,969,000
Total current liabilities	US$ in thousands	8,956,000	6,641,000	7,811,000	6,626,000	5,836,000
Working capital turnover		13.35	9.52	57.18	8.65	5.13

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,178,000K ÷ ($10,468,000K – $8,956,000K)
= 13.35

Becton Dickinson and Company's working capital turnover has exhibited significant fluctuations over the past five years. The ratio indicates how efficiently the company utilizes its working capital to generate sales revenue.

In 2024, the working capital turnover ratio stood at 13.35, which represents a substantial improvement compared to the previous year. This increase suggests that Becton Dickinson has become more efficient in managing its working capital to support its sales activities.

The 2023 figure of 9.52 reflects a slight decline from the preceding year. This indicates that the company was slightly less effective in utilizing its working capital to generate revenue compared to 2022.

A notable anomaly is seen in 2022 with a remarkably high working capital turnover ratio of 57.18. This could indicate either a sudden improvement in working capital management efficiency or an irregularity in the financial data that may need further investigation.

The ratios for 2021 (8.65) and 2020 (5.13) indicate relatively lower efficiency in working capital utilization compared to the more recent years. This implies that Becton Dickinson may have faced challenges in optimizing its working capital for revenue generation during these periods.

Overall, Becton Dickinson and Company's working capital turnover has shown variability, with some years demonstrating improved efficiency while others showing fluctuations or lower levels of effectiveness. An in-depth analysis of the underlying factors contributing to these fluctuations would provide valuable insights into the company's working capital management practices and performance.