Becton Dickinson and Company (BDX)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,533,000 | 2,068,000 | 2,325,000 | 2,649,000 | 1,464,000 |
| Long-term debt | US$ in thousands | 17,940,000 | 14,738,000 | 13,886,000 | 17,110,000 | 17,224,000 |
| Total stockholders’ equity | US$ in thousands | 25,890,000 | 25,796,000 | 25,282,000 | 23,677,000 | 23,765,000 |
| Return on total capital | 5.78% | 5.10% | 5.94% | 6.49% | 3.57% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,533,000K ÷ ($17,940,000K + $25,890,000K)
= 5.78%
The return on total capital for Becton Dickinson and Company has varied over the past five years. In 2024, the return on total capital was 5.78%, showing a slight increase from the previous year's 5.10%. However, it was lower compared to the rates in 2022 and 2021, which were 5.94% and 6.49%, respectively. The return on total capital in 2020 was the lowest at 3.57%.
Overall, the return on total capital indicates the efficiency with which the company is utilizing its capital to generate profits. The fluctuation in this ratio over the years may suggest changes in the company's profitability, asset utilization, or capital structure. Further analysis of the company's financial statements and business operations would be needed to understand the factors contributing to these fluctuations and to assess the sustainability of the company's profitability in the future.
Peer comparison
Sep 30, 2024