Becton Dickinson and Company (BDX)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,286,000 | 52,780,000 | 52,934,000 | 53,866,000 | 54,012,000 |
| Total stockholders’ equity | US$ in thousands | 25,890,000 | 25,796,000 | 25,282,000 | 23,677,000 | 23,765,000 |
| Financial leverage ratio | 2.21 | 2.05 | 2.09 | 2.28 | 2.27 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $57,286,000K ÷ $25,890,000K
= 2.21
The financial leverage ratio of Becton Dickinson and Company has shown some fluctuation over the past five years. The ratio increased from 2.09 in 2022 to 2.28 in 2021, before slightly decreasing to 2.27 in 2020. However, there was a notable decrease in the financial leverage ratio to 2.05 in 2023, followed by an increase to 2.21 in 2024.
A financial leverage ratio of 2.21 in 2024 indicates that Becton Dickinson and Company relies on debt financing to support its operations, with a higher proportion of debt in comparison to equity. This level of financial leverage suggests that the company may have a higher risk due to its significant reliance on debt to fund its activities. It also implies that the company may face challenges in generating sufficient profits to cover its debt obligations.
Overall, the trend in Becton Dickinson and Company's financial leverage ratio suggests some volatility in its capital structure over the past five years, with a mix of increased and decreased reliance on debt. Further analysis of the company's debt management and overall financial health would be necessary to understand the implications of these fluctuations in the financial leverage ratio.
Peer comparison
Sep 30, 2024