Becton Dickinson and Company (BDX)

Financial leverage ratio

		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
Total assets	US$ in thousands	52,274,000	52,780,000	53,017,000	54,394,000	53,129,000	52,934,000	53,199,000	54,786,000	53,363,000	53,866,000	54,333,000	54,921,000	54,748,000	54,012,000	53,959,000	53,516,000	51,952,000	51,765,000	52,233,000	52,598,000
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
Financial leverage ratio		2.06	2.05	2.04	2.12	2.09	2.09	2.09	2.23	2.21	2.28	2.25	2.21	2.22	2.27	2.25	2.55	2.45	2.46	2.43	2.47

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,274,000K ÷ $25,332,000K
= 2.06

The financial leverage ratio of Becton Dickinson & Co. has been relatively stable over the past eight quarters, ranging between 2.04 and 2.23. This ratio indicates that the company relies more on debt financing compared to equity, with the data showing that every dollar of equity is being supported by approximately $2.04 to $2.23 of debt on average.

The slight fluctuation in the financial leverage ratio from quarter to quarter suggests that the company has been managing its capital structure effectively. However, the increase in the ratio from 2.04 in Q3 2023 to 2.23 in Q2 2022 could indicate a possible increase in debt levels relative to equity during that period. It would be essential for stakeholders to monitor this trend to ensure that the company's debt remains at manageable levels and does not pose a risk to its financial stability.

Overall, while Becton Dickinson & Co.'s financial leverage ratio indicates a moderate reliance on debt financing, the company's consistent performance within a relatively narrow range suggests a level of stability in its capital structure management.