Becton Dickinson and Company (BDX)

Cash conversion cycle

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Days of inventory on hand (DOH) days 65.36 70.66 58.58 117.83 104.57
Days of sales outstanding (DSO) days 47.74 42.38 47.64 54.45 49.50
Number of days of payables days 32.77 37.23 37.14 58.21 44.28
Cash conversion cycle days 80.33 75.80 69.08 114.08 109.80

September 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.36 + 47.74 – 32.77
= 80.33

The cash conversion cycle of Becton Dickinson & Co. has fluctuated over the past five years. In the most recent fiscal year ending September 30, 2023, the company’s cash conversion cycle was 100.92 days, representing an increase from the previous year. This indicates that, on average, it takes the company approximately 100.92 days to convert its investments in inventory and accounts receivable into cash receipts from customers.

The increase in the cash conversion cycle suggests that the company may be taking longer to sell its inventory or collect payments from its customers. This could potentially lead to increased working capital requirements and liquidity challenges. It is crucial for the company to closely monitor and manage its inventory levels and accounts receivable to optimize its cash conversion cycle and ensure efficient use of its resources.


Peer comparison

Sep 30, 2023


See also:

Becton Dickinson and Company Cash Conversion Cycle