Becton Dickinson and Company (BDX)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,717,000 | 1,416,000 | 1,006,000 | 2,283,000 | 2,825,000 |
| Short-term investments | US$ in thousands | 445,000 | 8,000 | 8,000 | 12,000 | 20,000 |
| Receivables | US$ in thousands | 3,033,000 | 2,534,000 | 2,191,000 | 2,497,000 | 2,398,000 |
| Total current liabilities | US$ in thousands | 8,956,000 | 6,641,000 | 7,811,000 | 6,626,000 | 5,836,000 |
| Quick ratio | 0.58 | 0.60 | 0.41 | 0.72 | 0.90 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,717,000K
+ $445,000K
+ $3,033,000K)
÷ $8,956,000K
= 0.58
The Quick Ratio of Becton Dickinson and Company has shown a declining trend over the past five years. In 2020, the quick ratio was at its highest point of 0.90, indicating a strong ability to meet its short-term obligations with its most liquid assets. However, the quick ratio has been decreasing since then, reaching its lowest point in 2022 at 0.41.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term financial obligations using only its quick assets, such as cash and accounts receivable. The downward trend in the quick ratio indicates a potentially worsening liquidity position for Becton Dickinson and Company over the years.
It is important for investors and stakeholders to monitor the company's quick ratio closely to assess its ability to handle short-term financial obligations and manage liquidity risk effectively. The decreasing trend in the quick ratio highlights the importance of identifying and addressing factors that may be impacting the company's liquidity position.
Peer comparison
Sep 30, 2024