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.


Peer comparison

Dec 31, 2023


See also:

Becton Dickinson and Company Financial Leverage (Quarterly Data)