Becton Dickinson and Company (BDX)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,094,000 | 2,215,000 | 3,157,000 | 7,577,000 | 8,288,000 |
| Revenue | US$ in thousands | 19,372,000 | 18,870,000 | 19,131,000 | 16,074,000 | 17,290,000 |
| Gross profit margin | 5.65% | 11.74% | 16.50% | 47.14% | 47.94% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,094,000K ÷ $19,372,000K
= 5.65%
The gross profit margin is a critical financial metric that provides an indication of a company's efficiency in generating profits from its direct production costs. Analyzing the gross profit margin of Becton Dickinson & Co. over the past five years, we observe a declining trend.
In 2019, the gross profit margin stood at 47.94%, signifying that for every dollar of revenue, the company retained approximately 47.94 cents after deducting the cost of goods sold. However, this margin started to decrease in subsequent years, reaching 44.27% by the end of 2020 and 46.56% by the close of 2021.
The most recent data for the fiscal year ending September 30, 2023, indicates that the gross profit margin further declined to 42.17%. This downtrend may raise concerns about the company's ability to effectively manage its production costs and maintain profitability.
A decline in gross profit margin could be influenced by various factors such as increased production costs, pricing pressures, or changes in product mix. This trend warrants further investigation to understand the underlying reasons and assess the potential impact on the company's overall financial performance.
Investors, analysts, and stakeholders should closely monitor Becton Dickinson & Co.'s efforts to address the declining gross profit margin and evaluate its impact on the company's competitiveness and long-term profitability.
Peer comparison
Sep 30, 2023