Becton Dickinson and Company (BDX)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	1,815,000	2,270,000	2,483,000
Long-term debt	US$ in thousands	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	18,081,000	18,016,000	17,556,000
Total stockholders’ equity	US$ in thousands	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	21,081,000	21,497,000	21,309,000
Return on total capital		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%	4.63%	5.74%	6.39%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,954,000K ÷ ($14,094,000K + $25,332,000K)
= 4.96%

Analyzing the return on total capital for Becton Dickinson & Co. over the past eight quarters reveals a relatively stable performance. The return on total capital ranged from 5.02% to 6.40% during this period. Despite some fluctuations, the company has generally maintained a consistent level of efficiency in generating profits relative to the total capital invested.
The highest return on total capital was observed in Q3 2022 at 6.40%, while the lowest was in Q1 2024 at 5.02%. This indicates that the company was most effective in utilizing its total capital in Q3 2022 compared to other quarters.
Overall, Becton Dickinson & Co. has demonstrated a reasonable return on total capital performance, which suggests efficient capital allocation and management.