Becton Dickinson and Company (BDX)

Liquidity ratios

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
Current ratio 1.17 1.85 1.41 1.08 1.31 1.25 1.31 1.07 1.04 1.35 1.53 1.23 1.33 1.23 1.86 1.36 1.54 1.45 0.98 0.96
Quick ratio 0.58 1.20 0.78 0.46 0.60 0.49 0.60 0.38 0.41 0.68 0.82 0.61 0.72 0.68 1.09 0.80 0.90 0.81 0.52 0.39
Cash ratio 0.24 0.80 0.43 0.16 0.21 0.14 0.27 0.08 0.13 0.36 0.47 0.28 0.35 0.41 0.70 0.47 0.49 0.48 0.27 0.08

The liquidity ratios of Becton Dickinson and Company indicate the firm's ability to meet its short-term financial obligations. The current ratio has fluctuated over the past two years, ranging from a low of 1.04 to a high of 1.85, with the latest figure standing at 1.17 as of September 30, 2024. This suggests that the company may have slightly less liquidity in the most recent period compared to the prior quarter, but it still has sufficient current assets to cover its current liabilities.

The quick ratio has also shown variability, with values ranging from 0.38 to 1.20. As of September 30, 2024, the quick ratio stands at 0.58, indicating that the company has a lower ability to cover its short-term obligations using its most liquid assets. However, it is important to note that the quick ratio is generally lower than the current ratio due to excluding inventory from current assets.

The cash ratio, which provides the most stringent measure of liquidity, has shown a wide range of values over the past two years, from 0.08 to 0.80. As of September 30, 2024, the cash ratio is 0.24, indicating that the company may have limited cash and cash equivalents relative to its current liabilities.

Overall, while the current ratio suggests a reasonable level of liquidity, the quick and cash ratios paint a slightly less favorable picture. Continued monitoring of these ratios will be essential to assess the company's ongoing ability to meet its short-term financial obligations.

See also:

Becton Dickinson and Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle of Becton Dickinson and Company has shown fluctuations over the past several quarters. The cash conversion cycle represents the average number of days it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

In the most recent quarter, ending on September 30, 2024, Becton Dickinson and Company had a cash conversion cycle of 95.21 days. This indicates an improvement compared to the previous quarter, where the cycle was longer at 111.90 days. However, it is worth noting that the cycle has been volatile, with periods of longer and shorter cycles observed in recent quarters.

When comparing the current cycle to the same quarter in the previous year, there has been an overall improvement from 104.24 days to 95.21 days by September 30, 2024. This suggests the company has been managing its working capital more efficiently, potentially through better inventory management, accounts receivable collection, or accounts payable practices.

It is important for Becton Dickinson and Company to continue monitoring and optimizing its cash conversion cycle to ensure efficient use of its resources and timely cash flows. A shorter cycle generally indicates that the company is able to generate cash more quickly from its operations, which can improve liquidity and overall financial performance.