Becton Dickinson and Company (BDX)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	17,289,000	17,107,000	17,035,000
Total current assets	US$ in thousands	8,156,000	8,676,000	8,588,000	9,587,000	8,175,000	8,141,000	9,547,000	10,152,000	8,307,000	8,838,000	9,538,000	10,000,000	9,537,000	8,969,000	8,827,000	8,555,000	6,438,000	6,664,000	6,781,000	6,844,000
Total current liabilities	US$ in thousands	7,540,000	6,641,000	6,878,000	7,304,000	7,625,000	7,811,000	7,080,000	6,657,000	6,735,000	6,626,000	7,749,000	5,376,000	7,021,000	5,836,000	6,067,000	8,755,000	6,726,000	5,655,000	6,237,000	7,108,000
Working capital turnover		31.64	9.52	11.14	8.24	34.07	57.18	7.68	5.41	12.14	8.90	10.96	4.08	7.24	5.46	6.13	—	—	17.13	31.45	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,492,000K ÷ ($8,156,000K – $7,540,000K)
= 31.64

The working capital turnover ratio for Becton Dickinson & Co. has exhibited fluctuations over the past eight quarters. The ratio reached its peak at 57.18 in Q4 2022 before experiencing a significant decline to 5.73 in Q2 2022. Subsequently, there was an increase in Q3 2022 to 8.02, followed by a sharp rise to 33.50 in Q1 2023.

However, the working capital turnover ratio saw a notable drop to 8.00 in Q2 2023, which was followed by a further decrease to 10.82 in Q3 2023. The ratio then fell to 9.51 in Q4 2023 and rose again to 31.64 in Q1 2024.

These fluctuations suggest changes in how efficiently Becton Dickinson & Co. is utilizing its working capital to generate sales. A higher ratio indicates that the company is turning over its working capital more frequently, which can be a positive sign of operational efficiency. Conversely, a lower ratio may imply inefficiencies or challenges in managing working capital effectively. It is important for the company to closely monitor this ratio to ensure optimal utilization of its working capital resources.