Becton Dickinson and Company (BDX)
Quick ratio
| 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 | US$ in thousands | 1,717,000 | 4,459,000 | 2,348,000 | 1,180,000 | 1,416,000 | 923,000 | 1,981,000 | 612,000 | 1,006,000 | 2,558,000 | 3,147,000 | 1,903,000 | 2,283,000 | 3,153,000 | 3,734,000 | 3,248,000 | 2,825,000 | 2,882,000 | 2,351,000 | 560,000 |
| Short-term investments | US$ in thousands | 445,000 | 851,000 | 827,000 | 2,000 | 8,000 | 8,000 | 6,000 | 0 | 8,000 | 14,000 | 15,000 | 8,000 | 12,000 | 24,000 | 24,000 | 17,000 | 20,000 | 22,000 | 6,000 | 8,000 |
| Receivables | US$ in thousands | 3,033,000 | 2,596,000 | 2,559,000 | 2,267,000 | 2,534,000 | 2,414,000 | 2,413,000 | 2,282,000 | 2,191,000 | 2,218,000 | 2,303,000 | 2,177,000 | 2,497,000 | 2,078,000 | 2,118,000 | 2,370,000 | 2,398,000 | 1,993,000 | 2,160,000 | 2,074,000 |
| Total current liabilities | US$ in thousands | 8,956,000 | 6,605,000 | 7,327,000 | 7,540,000 | 6,641,000 | 6,878,000 | 7,304,000 | 7,625,000 | 7,811,000 | 7,080,000 | 6,657,000 | 6,735,000 | 6,626,000 | 7,749,000 | 5,376,000 | 7,021,000 | 5,836,000 | 6,067,000 | 8,755,000 | 6,726,000 |
| 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 |
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 exhibited fluctuations over the past few years, with values ranging from as low as 0.38 to as high as 1.20. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1.0 indicates potential liquidity issues as the company may struggle to cover its current liabilities without relying on inventory sales.
Looking at the trend, the quick ratio was volatile in recent quarters, indicating inconsistent short-term liquidity management. The significant drop in the ratio in December 2023 to 0.46 suggests a potential liquidity strain during that period. However, it improved in the subsequent quarter, reaching 0.78 in March 2024. Despite some fluctuations, the quick ratio generally hovered around the 0.60 to 0.80 range in the past few years.
The quick ratio exceeding 1.0 in some quarters, such as in June 2024 and March 2021, indicates a relatively healthier liquidity position during those periods. In contrast, the quick ratio falling below 0.50, as seen in September 2022 and June 2021, hints at possible difficulties in meeting short-term obligations without resorting to inventory liquidation.
Overall, sustained monitoring of Becton Dickinson and Company's quick ratio is crucial to assess its short-term liquidity health and ensure the company can meet its immediate financial obligations efficiently.
Peer comparison
Sep 30, 2024