Becton Dickinson and Company (BDX)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,451,000	2,078,000	2,066,000	1,954,000	2,068,000	2,244,000	2,144,000	2,101,000	2,325,000	2,272,000	2,394,000	2,220,000	2,688,000	2,533,000	2,304,000	2,209,000	1,465,000	1,388,000	1,621,000	1,461,000
Long-term debt	US$ in thousands	17,940,000	18,131,000	15,995,000	14,094,000	14,738,000	14,926,000	16,010,000	14,268,000	13,886,000	14,683,000	17,584,000	16,360,000	17,110,000	15,700,000	17,718,000	16,082,000	17,224,000	17,090,000	16,809,000	16,949,000
Total stockholders’ equity	US$ in thousands	25,890,000	25,868,000	25,647,000	25,332,000	25,796,000	25,937,000	25,689,000	25,472,000	25,282,000	25,493,000	24,525,000	24,160,000	23,677,000	24,135,000	24,826,000	24,663,000	23,765,000	24,022,000	20,951,000	21,202,000
Return on total capital		5.59%	4.72%	4.96%	4.96%	5.10%	5.49%	5.14%	5.29%	5.94%	5.66%	5.69%	5.48%	6.59%	6.36%	5.42%	5.42%	3.57%	3.38%	4.29%	3.83%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,451,000K ÷ ($17,940,000K + $25,890,000K)
= 5.59%

Over the past several quarters, Becton Dickinson and Company's return on total capital has shown some fluctuations. The return on total capital is a key measure of a company's profitability and efficiency in generating returns for both debt and equity holders.

The return on total capital for Becton Dickinson and Company has ranged from 3.38% to 6.59% over the past two years. The highest return was observed in December 2021 at 6.59%, while the lowest return was in September 2020 at 3.38%. The average return on total capital during this period was approximately 5.35%.

It is important to note that a return on total capital above the company's cost of capital indicates that the company is generating value for its investors. Becton Dickinson and Company's returns have generally been above 5% over the analyzed period, suggesting that the company has been efficiently utilizing its capital to generate profits.

Overall, the trend in Becton Dickinson and Company's return on total capital over the past two years shows some variability but generally remains positive, indicating a profitable operation and effective capital management.