Becton Dickinson and Company (BDX)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	57,286,000	55,582,000	54,157,000	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
Total stockholders’ equity	US$ in thousands	25,890,000	25,868,000	25,647,000	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
Financial leverage ratio		2.21	2.15	2.11	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

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 fluctuations over the past years, ranging from 2.04 to 2.55. The financial leverage ratio measures the proportion of a company's debt to its equity and indicates the level of financial risk the company carries.

From the data provided, it is evident that the company's financial leverage ratio has generally remained above 2, indicating that Becton Dickinson relies more on debt financing than equity financing. A higher financial leverage ratio suggests a higher level of financial risk due to the higher proportion of debt in the company's capital structure.

The fluctuations in the financial leverage ratio over time could be attributed to various factors such as changes in the company's capital structure, debt repayment or issuance, profitability, and strategic decisions regarding financing activities. It is essential for investors and analysts to monitor the trend of the financial leverage ratio to assess the company's risk profile and financial stability.