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Becton, Dickinson & Co. (NYSE:BDX)

This company has been moved to the archive! The financial data has not been updated since May 5, 2022.

Common-Size Income Statement

Becton, Dickinson & Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Revenues 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -53.44 -55.73 -52.06 -54.56 -50.86 -52.01
Gross profit 46.56% 44.27% 47.94% 45.44% 49.14% 47.99%
Selling and administrative expense -24.04 -25.27 -25.05 -25.12 -24.19 -24.07
Research and development expense -6.61 -6.40 -6.14 -6.29 -6.40 -6.63
Acquisitions and other restructurings -0.91 -1.81 -2.78 -4.65 -2.93 -5.83
Other operating expense, net -1.17 -2.12 -3.78 0.00 -3.40 0.00
Operating income 13.82% 8.67% 10.18% 9.37% 12.22% 11.46%
Interest expense -2.32 -3.08 -3.70 -4.42 -4.31 -3.11
Interest income 0.04 0.04 0.07 0.41 0.63 0.17
Other investment gains, net 0.28 0.08 0.10 0.05 0.02 0.06
Deferred compensation 0.21 0.14 0.03 0.02 0.00 0.00
Net pension and postretirement benefit cost 0.00 0.04 -0.01 0.00 0.00 0.00
Losses on undesignated foreign exchange derivatives, net -0.06 -0.10 -0.13 -0.09 -0.09 -0.02
Losses on debt extinguishment -0.88 -0.05 -0.34 -0.10 -0.60 0.00
Product related matters -0.01 -0.05 0.00 0.00 0.00 0.00
Royalty and licensing income 0.00 0.10 0.37 0.32 0.00 0.00
Hurricane-related insurance proceeds 0.00 0.00 0.20 0.00 0.00 0.00
Vyaire Medical-related amounts and other income from divestitures 0.00 0.00 0.03 1.80 -0.02 0.00
Gains on previously held investments 0.00 0.00 0.00 0.00 0.20 0.00
Other -0.01 -0.03 -0.01 -0.02 0.02 0.05
Other income (expense), net -0.48% 0.13% 0.25% 1.98% -0.47% 0.09%
Income before income taxes 11.07% 5.75% 6.80% 7.34% 8.07% 8.60%
Income tax (provision) benefit -0.74 -0.65 0.33 -5.39 1.03 -0.79
Net income 10.33% 5.11% 7.13% 1.95% 9.10% 7.82%
Preferred stock dividends -0.44 -0.63 -0.87 -0.95 -0.58 0.00
Net income applicable to common shareholders 9.89% 4.48% 6.26% 0.99% 8.52% 7.82%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The common-size income statement analysis reveals a period of operational volatility with a distinct trend toward improved profitability and cost discipline by the end of the analyzed period. While gross margins experienced fluctuations, the overall operating profile was strengthened by a significant reduction in non-recurring expenses and a recovery in net margins.

Gross Profitability Trends
Gross profit margins exhibited variability, peaking at 49.14% in 2017 and reaching a low of 44.27% in 2020. This fluctuation is directly attributable to the cost of products sold, which ranged from 50.86% to 55.73% of revenues. A recovery was observed in 2021, with the gross margin returning to 46.56%.
Operating Expense Analysis
Core operational spending remained relatively stable over the six-year period. Selling and administrative expenses consistently accounted for approximately 24% to 25% of revenues. Similarly, research and development expenses remained steady, fluctuating minimally between 6.14% and 6.63%. A significant efficiency gain is observed in acquisitions and restructuring costs, which declined sharply from 5.83% of revenues in 2016 to 0.91% in 2021, indicating a transition away from heavy restructuring activity.
Operating Income Performance
Operating income as a percentage of revenues showed a cyclical pattern, dipping to a low of 8.67% in 2020 before surging to 13.82% in 2021. This late-period expansion suggests a successful alignment of cost structures with revenue generation, overcoming the pressures observed in 2018 and 2020.
Financial and Non-Operating Items
Interest expenses fluctuated between 2.32% and 4.42% of revenues, with the lowest burden occurring in 2021. Other income and expenses were characterized by inconsistency, influenced by one-time events such as Vyaire Medical-related divestitures and insurance proceeds, which created temporary variances in the pre-tax income margins.
Net Profitability and Tax Impact
Net income applicable to common shareholders displayed extreme volatility, most notably in 2018 when it fell to 0.99% of revenues. This sharp decline was primarily driven by a substantial income tax provision of 5.39% of revenues in that year. Following this trough, the net margin recovered progressively, ending at 9.89% in 2021, marking the highest level of bottom-line efficiency in the reported timeframe.

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