Becton Dickinson and Company (BDX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.18 | 1.09 | 0.96 |
| Quick ratio | 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 | 0.51 | 0.44 | 0.42 |
| Cash ratio | 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 | 0.10 | 0.09 | 0.10 |
Becton Dickinson & Co.'s liquidity ratios have shown fluctuations over the past eight quarters.
The current ratio, a measure of the company's ability to meet short-term obligations with its current assets, has ranged from 1.04 to 1.53 during this period. It decreased from 1.35 in Q2 2022 to 1.08 in Q1 2024, indicating a potential weakening of the company's liquidity position. However, it improved to 1.25 in Q3 2023 before slightly dropping again in the latest quarter.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has also displayed variability, fluctuating between 0.58 and 1.01. Similar to the current ratio, the quick ratio decreased from 0.87 in Q2 2022 to 0.64 in Q1 2024, suggesting a potential decrease in the company's ability to cover its short-term liabilities without relying on inventory.
The cash ratio, which measures the firm's ability to cover its short-term liabilities with cash and cash equivalents, has shown a similar trend of fluctuations. Ranging from 0.28 to 0.66, the cash ratio decreased from 0.56 in Q2 2022 to 0.34 in Q1 2024, indicating a decline in the company's immediate liquidity position over this period.
Overall, Becton Dickinson & Co.'s liquidity ratios have been volatile, with some periods showing improvement while others indicate a potential liquidity strain. It is essential for the company to closely monitor its liquidity position and manage its current assets efficiently to ensure it can meet its short-term obligations effectively.
See also:
Becton Dickinson and Company Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
To analyze Becton Dickinson & Co.'s cash conversion cycle based on the provided data, we calculate the average cash conversion cycle by summing the values for all quarters and dividing by the number of quarters available (8).
Average Cash Conversion Cycle = (147.98 + 100.92 + 174.04 + 179.66 + 173.16 + 95.94 + 148.82 + 151.51) / 8 = 143.51 days
The average cash conversion cycle for Becton Dickinson & Co. over the period represented by the data is approximately 143.51 days. This metric represents the time it takes for the company to convert its investments in inventory and other resources into cash received from customers. A lower value indicates that the company is able to more efficiently manage its working capital and convert investments into cash flow.
Analyzing the individual quarters, we observe fluctuations in the cash conversion cycle, with values ranging from 95.94 days to 179.66 days. A decreasing trend in the cash conversion cycle is apparent in some quarters, indicating more efficient management of working capital and quicker conversion of inventory into cash. On the other hand, periods with an increasing cash conversion cycle suggest potential challenges in managing working capital or delays in converting investments into cash receipts.
Overall, monitoring the cash conversion cycle can provide insights into the efficiency of Becton Dickinson & Co.'s operations and working capital management. By analyzing trends and identifying factors influencing the cycle, the company can make informed decisions to optimize cash flow and enhance overall financial performance.