Becton Dickinson and Company (BDX)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.65% | 11.74% | 16.50% | 47.14% | 47.94% |
| Operating profit margin | 10.90% | 12.09% | 11.76% | 5.67% | 10.18% |
| Pretax margin | 8.34% | 10.21% | 11.40% | 5.82% | 6.80% |
| Net profit margin | 7.66% | 9.43% | 10.94% | 5.44% | 7.13% |
Based on the data provided, we can observe a declining trend in Becton Dickinson & Co.'s profitability ratios over the past five years. The gross profit margin has decreased from 47.94% in 2019 to 42.17% in 2023, indicating a reduction in the company's ability to generate profits from its revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also exhibited a downward trajectory, declining from 12.96% in 2019 to 11.34% in 2023. This suggests that the company's ability to control its operating expenses and generate profits from its core business operations has diminished over the years.
The pretax margin, which reflects the company's profitability before accounting for taxes, has followed a similar pattern, declining from 6.80% in 2019 to 8.58% in 2023. This indicates a decrease in the company's profitability at the pre-tax level.
The net profit margin, which measures the company's bottom-line profitability after accounting for all expenses including taxes, has also shown a decreasing trend, falling from 6.25% in 2019 to 7.35% in 2023.
In conclusion, the downward trajectory of Becton Dickinson & Co.'s profitability ratios suggests a potential erosion in the company's overall profitability and efficiency in generating earnings in recent years. This may raise concerns regarding the company's ability to effectively manage its costs and maintain profitability in a competitive market environment.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.00% | 4.31% | 4.18% | 1.69% | 3.40% |
| Return on assets (ROA) | 2.81% | 3.36% | 3.88% | 1.62% | 2.38% |
| Return on total capital | 5.10% | 5.94% | 6.49% | 3.57% | 4.63% |
| Return on equity (ROE) | 5.75% | 7.04% | 8.84% | 3.68% | 5.85% |
Based on the data provided for Becton Dickinson & Co., the profitability ratios show the following trends:
1. Operating return on assets (Operating ROA) has gradually declined from 5.54% in September 2021 to 4.16% in September 2023. This ratio signifies the company's ability to generate profits from its assets before interest and taxes.
2. Return on assets (ROA) has followed a similar downward trend, decreasing from 3.71% in September 2021 to 2.70% in September 2023. This ratio measures the company's ability to generate profits from its total assets.
3. Return on total capital has also seen a decline, dropping from 7.23% in September 2021 to 5.27% in September 2023. This ratio reflects the company's ability to generate profits from the total capital employed in the business.
4. Return on equity (ROE) has exhibited a consistent decrease, falling from 8.45% in September 2021 to 5.52% in September 2023. ROE measures the company's ability to generate profits from shareholders' equity.
Overall, the declining trends in profitability ratios indicate a reduction in the company's ability to generate profits relative to its assets, capital, and equity. This may raise concerns about the company's operational efficiency and financial performance over the years covered in the data.