Becton Dickinson and Company (BDX)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,676,000 | 8,141,000 | 8,838,000 | 8,969,000 | 6,664,000 |
| Total current liabilities | US$ in thousands | 6,641,000 | 7,811,000 | 6,626,000 | 5,836,000 | 5,655,000 |
| Current ratio | 1.31 | 1.04 | 1.33 | 1.54 | 1.18 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,676,000K ÷ $6,641,000K
= 1.31
The current ratio of Becton Dickinson & Co. has fluctuated over the past five years, with the ratio standing at 1.31 as of September 30, 2023. This represents an improvement compared to the previous year's ratio of 1.04. The current ratio indicates the company's ability to meet its short-term liabilities with its current assets. A ratio above 1.0 suggests that the company has more current assets than current liabilities, which is generally considered favorable.
The increase in the current ratio from 2022 to 2023 suggests an improvement in the company's liquidity position, as it indicates that Becton Dickinson & Co. has enhanced its ability to cover its short-term obligations using its current assets. However, it's important to note that while a higher current ratio is generally positive, an excessively high ratio could indicate inefficient use of resources, such as holding too much inventory or not effectively utilizing cash.
Overall, the improvement in the current ratio indicates a strengthened short-term liquidity position for Becton Dickinson & Co. as of September 30, 2023, which may help the company meet its financial obligations and seize opportunities for investment and growth.
Peer comparison
Sep 30, 2023