Becton Dickinson and Company (BDX)

Working capital 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
Total current assets	US$ in thousands	10,468,000	12,207,000	10,340,000	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
Total current liabilities	US$ in thousands	8,956,000	6,605,000	7,327,000	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
Working capital turnover		13.35	3.54	6.54	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	—	—

September 30, 2024 calculation

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

The working capital turnover ratio of Becton Dickinson and Company has exhibited fluctuations over the periods provided. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio suggests that the company is effectively managing its working capital, while a lower ratio may imply inefficiencies or a need for improvement in working capital management.

Analyzing the data, we observe that the working capital turnover ratio has ranged from 3.54 to 57.18 over the past few quarters. In the most recent period ending September 30, 2024, the ratio stood at 13.35, showing an improvement compared to the previous quarter.

The significant increase in the ratio in December 2023 and September 2022, with values of 31.64 and 57.18, respectively, indicates superior utilization of working capital during those periods. However, there are also instances of lower ratios, such as in March 2021 and March 2020 (4.08 and 5.41, respectively), which may suggest potential inefficiencies in working capital management during those periods.

Overall, the varying working capital turnover ratios reflect fluctuations in the company's efficiency in converting working capital into sales revenue over the different reporting periods. Further analysis of operational activities and financial management practices can provide insights into the factors contributing to these fluctuations in the working capital turnover ratio.