Becton Dickinson and Company (BDX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	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	104.58	106.73	106.82
Days of sales outstanding (DSO)	days	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	49.51	47.37	48.83
Number of days of payables	days	—	32.94	—	—	—	36.87	—	—	—	36.99	—	—	—	51.84	—	—	—	44.28	—	—
Cash conversion cycle	days	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	109.81	154.09	155.66

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.25 + 42.45 – —
= 107.71

The cash conversion cycle of Becton Dickinson & Co. has fluctuated over the past eight quarters, indicating changes in its efficiency in managing its working capital. In Q2 and Q3 of 2023, the company experienced a prolonged cash conversion cycle, exceeding 170 days, which may indicate challenges in converting its investments in inventory and receivables into cash. However, in Q4 2023 and Q1 2024, the cash conversion cycle improved to around 100-150 days, suggesting that the company became more efficient in its working capital management during these periods. Overall, fluctuations in the cash conversion cycle of Becton Dickinson & Co. should be closely monitored to ensure optimal liquidity and operational performance.