Becton Dickinson and Company (BDX)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,416,000 | 1,006,000 | 2,283,000 | 2,825,000 | 536,000 |
| Short-term investments | US$ in thousands | 8,000 | 8,000 | 12,000 | 20,000 | 30,000 |
| Total current liabilities | US$ in thousands | 6,641,000 | 7,811,000 | 6,626,000 | 5,836,000 | 5,655,000 |
| Cash ratio | 0.21 | 0.13 | 0.35 | 0.49 | 0.10 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,416,000K
+ $8,000K)
÷ $6,641,000K
= 0.21
The cash ratio of Becton Dickinson & Co. has fluctuated over the past five years. The trend indicates a decrease in the cash ratio from 0.64 in 2020 to 0.42 in 2023. This suggests that the company's ability to cover its short-term liabilities with cash and cash equivalents has diminished. A lower cash ratio may indicate a lower level of liquidity and a potential challenge in meeting short-term obligations. However, it is important to consider other liquidity and solvency ratios to gain a comprehensive understanding of the company's financial health.
Peer comparison
Sep 30, 2023