Becton Dickinson and Company (BDX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	79.64	64.12	63.28	65.25	65.69	77.93	80.63	78.85	69.96	67.63	68.71	64.36	58.35	70.76	80.78	90.04	104.95	115.83	108.92	111.17
Days of sales outstanding (DSO)	days	54.86	47.79	47.37	42.45	47.74	46.26	46.83	44.45	42.38	42.70	44.42	41.64	46.32	38.67	40.99	47.51	51.13	43.00	45.28	43.62
Number of days of payables	days	39.29	—	—	—	32.94	—	—	—	36.87	—	—	—	36.99	—	—	—	51.84	—	—	—
Cash conversion cycle	days	95.21	111.90	110.66	107.71	80.50	124.19	127.45	123.30	75.47	110.33	113.13	106.01	67.67	109.43	121.77	137.55	104.24	158.83	154.19	154.79

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.64 + 54.86 – 39.29
= 95.21

The cash conversion cycle of Becton Dickinson and Company, a measure of how quickly a company can convert its inventories into cash, has shown some fluctuations over the past few quarters.

For the most recent quarter ending September 30, 2024, the cash conversion cycle was 95.21 days, which indicates that the company took approximately 95 days to convert its investments in inventory into cash receipts from customers.

Comparing this with the previous quarters, we observe that the trend has been somewhat variable. There was a notable increase in the cash conversion cycle in the quarter ending June 30, 2023, at 124.19 days, which decreased to 67.67 days in the quarter ending December 31, 2022.

Overall, the company appears to have made efforts to manage its working capital efficiently, as reflected in the declining trend from the recent peak. However, it remains important for the company to continue monitoring and improving its cash conversion cycle to ensure optimal management of inventories and receivables in order to maximize cash flow and overall financial performance.