Becton Dickinson and Company (BDX)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,780,000 | 52,934,000 | 53,866,000 | 54,012,000 | 51,765,000 |
| Total stockholders’ equity | US$ in thousands | 25,796,000 | 25,282,000 | 23,677,000 | 23,765,000 | 21,081,000 |
| Financial leverage ratio | 2.05 | 2.09 | 2.28 | 2.27 | 2.46 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,780,000K ÷ $25,796,000K
= 2.05
The financial leverage ratio of Becton Dickinson & Co. has exhibited a declining trend over the past five years, decreasing from 2.46 in 2019 to 2.05 in 2023. This indicates that the company's reliance on debt financing in relation to equity has gradually decreased. A lower financial leverage ratio implies a lower level of financial risk for the company, as it indicates a reduced dependency on debt to finance its operations and investments. However, it is essential to consider the specific industry and company circumstances when assessing the implications of this trend, as different industries may have varying optimal levels of leverage. Overall, the decreasing trend in Becton Dickinson & Co.'s financial leverage ratio suggests a potential improvement in its financial stability and risk management.
Peer comparison
Sep 30, 2023