Becton Dickinson and Company (BDX)

Solvency ratios

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
Debt-to-assets ratio 0.27 0.28 0.28 0.29 0.27 0.26 0.28 0.32 0.31 0.32 0.29 0.32 0.29 0.32 0.32 0.31 0.33 0.35 0.34 0.33
Debt-to-capital ratio 0.36 0.36 0.37 0.38 0.36 0.35 0.37 0.42 0.40 0.42 0.39 0.42 0.39 0.42 0.42 0.45 0.44 0.46 0.46 0.45
Debt-to-equity ratio 0.56 0.57 0.58 0.62 0.56 0.55 0.58 0.72 0.68 0.72 0.65 0.71 0.65 0.72 0.71 0.80 0.80 0.86 0.84 0.82
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

Solvency ratios are used to gauge a company's ability to meet its long-term obligations. The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Becton Dickinson & Co. maintained a relatively stable debt-to-assets ratio ranging from 0.30 to 0.34 over the past eight quarters, showcasing a conservative approach to debt utilization.

The debt-to-capital ratio compares a company's total debt to its total capital (debt and equity). Becton Dickinson & Co. exhibited a consistent debt-to-capital ratio in the range of 0.38 to 0.43 during the same period, reflecting a balanced capital structure.

The debt-to-equity ratio evaluates the level of debt relative to the shareholders' equity. Becton Dickinson & Co.'s debt-to-equity ratio fluctuated between 0.62 and 0.76 over the past two years, indicating some variability in the extent of reliance on debt to fund operations.

The financial leverage ratio calculates the proportion of a company's assets that are financed through debt. Becton Dickinson & Co. maintained a fairly consistent financial leverage ratio between 2.04 and 2.23, suggesting a moderate level of leverage in the capital structure.

Overall, Becton Dickinson & Co. appears to have managed its solvency ratios prudently, with no significant fluctuations or red flags observed in the debt-related metrics over the past eight quarters. It is essential to monitor these ratios continuously to ensure the company's long-term financial health and stability.

Coverage ratios

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
Interest coverage 4.24 4.58 5.07 5.07 5.23 5.84 5.61 5.69 4.96 5.74 5.28 4.61 4.33 2.77 2.54 2.86 2.42 2.84 3.34 3.52

To analyze Becton Dickinson & Co.'s interest coverage, we observe a consistent and healthy trend over the last eight quarters. The interest coverage ratio has been above 5 in all quarters, indicating the company's ability to comfortably meet its interest obligations. The highest interest coverage ratio was 6.69 in Q3 2022, while the lowest was 5.41 in Q1 2024, still remaining at a satisfactory level.

Overall, the consistently high interest coverage ratios suggest that Becton Dickinson & Co. has a strong ability to generate earnings relative to its interest expenses. This indicates the company's financial stability and capacity to manage its debt obligations effectively.

See also:

Becton Dickinson and Company Solvency Ratios (Quarterly Data)