Stock Analysis on Net
Stock Analysis on Net

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 financial data reveals several notable trends and fluctuations across the periods analyzed.

Revenues and Cost of Products Sold
Revenues are steady at 100% for all reported years, serving as the base for all other percentage-of-revenue calculations. The cost of products sold varies between 50.86% and 55.73%, with a peak in 2020, indicating some volatility in production or procurement costs relative to sales. This impacts gross profit margins accordingly.
Gross Profit
Gross profit as a percentage of revenues experiences a decline from 49.14% in 2017 to a low of 44.27% in 2020, recovering somewhat to 46.56% in 2021. This trend is consistent with the fluctuations in cost of products sold and suggests challenges in maintaining margin stability.
Operating Expenses
Selling and administrative expenses remain relatively stable, fluctuating narrowly around 24–25% of revenues. Research and development expenses show minor variation, generally between 6.14% and 6.63%. Acquisitions and other restructuring expenses decrease significantly from -5.83% in 2016 to -0.91% in 2021, indicating less spending or integration costs related to acquisitions over time. Other operating expenses, net, which are negative and sometimes missing, tend to decline in magnitude, from -3.4% in 2017 to -1.17% in 2021.
Operating Income
Operating income as a percentage of revenues shows variability, declining from 12.22% in 2017 to 8.67% in 2020, before rebounding sharply to 13.82% in 2021. This suggests improved operational performance or cost management in the most recent year, reversing earlier declines.
Interest and Investment Income/Expenses
Interest expense peaks at -4.42% in 2018, then steadily reduces to -2.32% in 2021, potentially reflecting effective debt management or lower interest rates. Interest income is generally minimal, hovering close to zero. Other investment gains, net, while small in magnitude, increase to 0.28% by 2021, indicating some positive investment outcomes.
Other Income/Expenses
Several smaller items such as deferred compensation, net pension costs, losses on foreign exchange derivatives, and losses on debt extinguishment show varying impacts. Notably, losses on debt extinguishment appear inconsistent but reach -0.88% in 2021, suggesting a one-time or irregular expense. Product-related matters and insurance proceeds have minimal but occasionally positive or negative effects.
Income Before Taxes and Net Income
Income before income taxes declines steadily from 8.6% in 2016 to 5.75% in 2020, followed by a marked increase to 11.07% in 2021. Income tax provisions fluctuate significantly with some years showing benefits (positive values) and others provisions (negative values), affecting net income trends. Net income exhibits a wide range, falling sharply to 1.95% in 2018, then recovering back above 10% in 2021, demonstrating volatility in profitability.
Net Income Applicable to Common Shareholders
This metric follows a pattern similar to net income, declining to a low of 0.99% in 2018 and increasing to 9.89% in 2021. Preferred stock dividends steadily decrease as a percentage of revenues, lowering the charge on common shareholders’ earnings.

In summary, the analyzed periods indicate a generally stable revenue base with fluctuating underlying cost structures impacting gross profit margins. Operating income and net income show volatility, with notable declines around 2018 and 2020 followed by a strong recovery in 2021. The decreasing acquisition and restructuring expenses and interest expenses by the end of the period likely contributed to improved profitability. Various other income and expense items introduce irregular effects, but the overall trend points to improved financial performance in the most recent year after periods of pressure on margins and earnings.