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 | ||
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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)