Becton Dickinson and Company (BDX)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,068,000 | 2,325,000 | 2,649,000 | 1,464,000 | 1,815,000 |
| Long-term debt | US$ in thousands | 14,738,000 | 13,886,000 | 17,110,000 | 17,224,000 | 18,081,000 |
| Total stockholders’ equity | US$ in thousands | 25,796,000 | 25,282,000 | 23,677,000 | 23,765,000 | 21,081,000 |
| Return on total capital | 5.10% | 5.94% | 6.49% | 3.57% | 4.63% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,068,000K ÷ ($14,738,000K + $25,796,000K)
= 5.10%
Based on the provided data, the return on total capital for Becton Dickinson & Co. has fluctuated over the past five years. In Sep 30, 2023, the return on total capital decreased to 5.27%, down from 6.09% in the previous year, indicating a decrease in the company's efficiency in generating returns from its total capital employed.
The return on total capital was highest in Sep 30, 2021, at 7.23%, before decreasing to 4.30% in Sep 30, 2020. The return then rebounded to 5.53% in Sep 30, 2019. This fluctuation suggests that the company's ability to generate profits relative to its total capital has been somewhat volatile in recent years.
Further analysis would be required to understand the factors contributing to these fluctuations and to assess the company's overall performance and capital utilization.
Peer comparison
Sep 30, 2023