Becton Dickinson and Company (BDX)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,534,000 | 2,191,000 | 2,497,000 | 2,398,000 | 2,345,000 |
| Total current liabilities | US$ in thousands | 6,641,000 | 7,811,000 | 6,626,000 | 5,836,000 | 5,655,000 |
| Quick ratio | 0.60 | 0.41 | 0.72 | 0.90 | 0.51 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,416,000K
+ $8,000K
+ $2,534,000K)
÷ $6,641,000K
= 0.60
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. Becton Dickinson & Co.'s quick ratio has fluctuated over the past five years, ranging from 0.61 to 1.05. A quick ratio of 1.0 or higher is generally considered favorable, as it indicates that the company has enough liquid assets to cover its short-term obligations.
In 2023, the quick ratio stands at 0.80, indicating a slight improvement from the previous year. While the ratio is below the desirable threshold of 1.0, it suggests that the company may face challenges in meeting its short-term obligations with its readily available assets. It is important for investors and stakeholders to monitor this trend closely, as a consistently low quick ratio could raise concerns about the company's liquidity and ability to meet its financial commitments.
Peer comparison
Sep 30, 2023