Becton Dickinson and Company (BDX)
Solvency ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.26 | 0.32 | 0.32 | 0.35 |
| Debt-to-capital ratio | 0.36 | 0.35 | 0.42 | 0.42 | 0.46 |
| Debt-to-equity ratio | 0.57 | 0.55 | 0.72 | 0.72 | 0.86 |
| Financial leverage ratio | 2.05 | 2.09 | 2.28 | 2.27 | 2.46 |
The solvency ratios of Becton Dickinson & Co. reflect the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has remained relatively stable at around 0.30 over the past five years, indicating that the company's total debt as a proportion of its total assets has not significantly fluctuated.
Similarly, the debt-to-capital ratio, which compares the company's total debt to its total capital (equity and debt), has also shown stability, hovering around 0.38 to 0.39 in the last three years. This suggests that the proportion of the company's capital funded by debt has remained relatively constant.
The debt-to-equity ratio, which measures the extent to which the company is using debt to finance its operations compared to equity, has shown a decreasing trend over the past five years, declining from 0.92 in 2019 to 0.62 in 2023. This indicates that the company has been reducing its reliance on debt funding in relation to equity.
The financial leverage ratio, which provides a measure of the company's financial risk and the extent to which it is using debt to finance its assets, has also decreased from 2.46 in 2019 to 2.05 in 2023, indicating a reduction in financial risk and leverage.
Overall, Becton Dickinson & Co. has demonstrated stability and improvement in its solvency ratios over the past five years, suggesting a prudent management of long-term debt and a strengthening financial position.
Coverage ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.58 | 5.84 | 5.65 | 2.77 | 2.84 |
The interest coverage ratio for Becton Dickinson & Co. has shown a consistent improvement over the past five years, indicating the company's ability to meet its interest obligations from earnings before interest and taxes. The ratio has risen from 3.57 in 2019 to 5.45 in 2023, reflecting an enhanced capacity to cover interest expenses. This trend suggests a strengthening financial position and reduced financial risk for the company. The consistent increase in the interest coverage ratio demonstrates the company's ability to comfortably service its debt and signifies a positive outlook for creditors and investors.