Becton Dickinson and Company (BDX)

Debt-to-equity ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
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
Debt-to-equity ratio		0.57	0.55	0.72	0.72	0.86

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,738,000K ÷ $25,796,000K
= 0.57

Becton Dickinson & Co.'s debt-to-equity ratio has been on a declining trend over the past five years, indicating a relatively improving financial leverage and risk profile. The ratio decreased from 0.92 in 2019 to 0.62 in 2023. This indicates that the company has been effectively managing its debt levels in relation to its equity.

A debt-to-equity ratio of 0.62 as of September 30, 2023, means that for every dollar of equity, the company has $0.62 in debt. This suggests that the company relies more on equity financing rather than debt, implying a lower financial risk. The gradual decrease in the ratio from 2021 to 2023 further reinforces the company's efforts to strengthen its financial flexibility and potentially enhance its creditworthiness in the eyes of creditors and investors.

Overall, the declining trend in the debt-to-equity ratio demonstrates an improved financial position and risk management by Becton Dickinson & Co. It suggests that the company has been successful in reducing its reliance on debt financing and strengthening its financial structure, which may bode well for its long-term stability and growth prospects.