Becton Dickinson and Company (BDX)

Return on equity (ROE)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	1,705,000	1,484,000	1,779,000	2,092,000	874,000
Total stockholders’ equity	US$ in thousands	25,890,000	25,796,000	25,282,000	23,677,000	23,765,000
ROE		6.59%	5.75%	7.04%	8.84%	3.68%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,705,000K ÷ $25,890,000K
= 6.59%

The Return on Equity (ROE) of Becton Dickinson and Company has shown variability over the past five years. In the most recent fiscal year ending on September 30, 2024, the ROE was 6.59%, representing a slight increase from the prior year's 5.75%. However, compared to two years ago, where the ROE was 7.04%, the current ROE is lower.

The trend of ROE over the five-year period indicates fluctuations, with a significant increase from 3.68% in 2020 to 8.84% in 2021, followed by a downward trend in the subsequent years. This fluctuation may reflect changes in the company's profitability and efficiency in generating returns for its shareholders through its equity.

A lower ROE in the most recent year may indicate potential challenges in generating profits from the shareholders' equity. It is essential to analyze the company's financial statements, operations, and market conditions to better understand the factors influencing its ROE performance.

Overall, Becton Dickinson and Company's ROE trend suggests varying performance in utilizing equity to generate returns for shareholders, warranting further investigation into the underlying drivers of its financial performance.