Becton Dickinson and Company (BDX)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.77% | 5.65% | 11.74% | 16.50% | 47.14% |
| Operating profit margin | 11.88% | 10.90% | 12.09% | 11.76% | 5.67% |
| Pretax margin | 9.94% | 8.34% | 10.21% | 11.40% | 5.82% |
| Net profit margin | 8.45% | 7.66% | 9.43% | 10.94% | 5.44% |
The profitability ratios of Becton Dickinson and Company have fluctuated over the past five years.
The gross profit margin has shown significant variation, with a notable decline from 47.14% in 2020 to 5.65% in 2023, before rebounding to 11.77% in 2024. This metric indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
Similarly, the operating profit margin has also been inconsistent, ranging from 5.67% in 2020 to 12.09% in 2022. This ratio reflects the efficiency of the company in managing its operating expenses while generating revenue.
The pretax margin, which represents the company's profitability before taxes, has fluctuated as well, with a notable increase from 5.82% in 2020 to 10.21% in 2022, before decreasing to 9.94% in 2024.
The net profit margin, which indicates the percentage of revenue that translates to net income, has varied between 5.44% in 2020 and 10.94% in 2021, with the most recent figure standing at 8.45% in 2024.
Overall, the company's profitability ratios demonstrate a mixed performance over the five-year period, reflecting changes in revenue, expenses, and overall efficiency in generating profit.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.18% | 4.00% | 4.31% | 4.18% | 1.69% |
| Return on assets (ROA) | 2.98% | 2.81% | 3.36% | 3.88% | 1.62% |
| Return on total capital | 5.78% | 5.10% | 5.94% | 6.49% | 3.57% |
| Return on equity (ROE) | 6.59% | 5.75% | 7.04% | 8.84% | 3.68% |
Becton Dickinson and Company's profitability ratios indicate its ability to generate profits relative to its assets, capital, and equity.
- Operating return on assets (Operating ROA): Becton Dickinson's Operating ROA shows a consistent trend of improvement from 1.69% in 2020 to 4.18% in 2024. This ratio measures the company's operating income generated per dollar of total assets and reflects the company's operational efficiency.
- Return on assets (ROA): The ROA shows a fluctuating trend, with improvements in 2022 and a slight decrease in 2024. This ratio signifies the company's overall profitability in generating earnings from its total assets.
- Return on total capital: Becton Dickinson's Return on Total Capital has shown a steady increase over the years, indicating the company's ability to generate returns for all of its capital providers. This ratio reflects the efficiency of the company in utilizing both equity and debt to generate profits.
- Return on equity (ROE): The Return on Equity has also shown an increasing trend, with fluctuations. This ratio measures the company's ability to generate profits from the equity invested by shareholders.
Overall, Becton Dickinson and Company's profitability ratios reflect a mixed performance. While the company has shown improvements in certain ratios over the years, fluctuations in others indicate the need for continuous monitoring and evaluation to ensure sustained profitability and efficient utilization of resources.