Name: Becton, Dickinson & Co. (NYSE:BDX) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Becton, Dickinson & Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Short-term debt	500)	707)	1,309)	2,601)	203)	1,001)
Accounts payable	1,793)	1,355)	1,092)	1,106)	797)	665)
Accrued expenses	2,943)	2,638)	2,127)	2,255)	1,393)	1,575)
Salaries, wages and related items	1,214)	993)	987)	910)	773)	696)
Income taxes	176)	143)	140)	344)	176)	274)
Liabilities held for sale	—)	—)	—)	—)	—)	189)
Current liabilities	6,626)	5,836)	5,655)	7,216)	3,342)	4,400)
Long-term debt, excluding current portion	17,110)	17,224)	18,081)	18,894)	18,667)	10,550)
Long-term employee benefit obligations	1,228)	1,435)	1,272)	1,056)	1,168)	1,319)
Deferred income taxes and other liabilities	5,225)	5,753)	5,676)	5,744)	1,609)	1,684)
Noncurrent liabilities	23,563)	24,412)	25,029)	25,694)	21,444)	13,553)
Total liabilities	30,189)	30,248)	30,684)	32,910)	24,786)	17,953)
Preferred stock	2)	2)	2)	2)	2)	—)
Common stock, $1 par value	365)	365)	347)	347)	347)	333)
Capital in excess of par value	19,272)	19,270)	16,270)	16,179)	9,619)	4,693)
Retained earnings	13,826)	12,791)	12,913)	12,596)	13,111)	12,727)
Deferred compensation	23)	23)	23)	22)	19)	21)
Common stock in treasury, at cost	(7,723)	(6,138)	(6,190)	(6,243)	(8,427)	(8,212)
Accumulated other comprehensive loss	(2,088)	(2,548)	(2,284)	(1,909)	(1,723)	(1,929)
Shareholders’ equity	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Total liabilities and shareholders’ equity	53,866)	54,013)	51,765)	53,904)	37,734)	25,586)

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 overall financial structure reflects a significant expansion of the balance sheet between 2016 and 2021, with total liabilities and shareholders' equity increasing from 25,586 million USD to 53,866 million USD. While total liabilities peaked in 2018, the subsequent years show a stabilization in debt levels coupled with a substantial strengthening of the equity base.

Liability Composition and Debt Trends: A substantial increase in long-term debt is observed between 2016 and 2017, rising from 10,550 million USD to 18,667 million USD, remaining relatively plateaued through 2021 at 17,110 million USD. Current liabilities exhibited volatility, peaking in 2018 at 7,216 million USD before moderating to 6,626 million USD by 2021. Within the current liability framework, a consistent upward trend is evident in accounts payable and accrued expenses, which grew from 665 million USD and 1,575 million USD in 2016 to 1,793 million USD and 2,943 million USD in 2021, respectively, suggesting an increase in operational scale.
Shareholders' Equity and Capital Structure: Shareholders' equity demonstrated aggressive growth, increasing from 7,633 million USD in 2016 to 23,677 million USD in 2021. This growth was primarily driven by a surge in capital in excess of par value, which rose from 4,693 million USD to 19,272 million USD over the period. Retained earnings remained relatively stable, fluctuating between 12,596 million USD and 13,826 million USD, indicating that the equity expansion was driven more by capital contributions or adjustments than by accumulated earnings. Treasury stock activity remained significant, with a cost of 7,723 million USD reported in 2021, reflecting ongoing share buyback activities.
Solvency and Financial Risk Profile: The relationship between total liabilities and shareholders' equity shifted toward a more equity-heavy structure. In 2016, liabilities outweighed equity by a ratio of approximately 2.35 to 1. By 2021, this ratio improved to approximately 1.27 to 1. The reduction in total liabilities from their 2018 peak of 32,910 million USD to 30,189 million USD in 2021, combined with the tripling of shareholders' equity, indicates a strengthened solvency position and a reduction in financial leverage over the analyzed period.

In summary, the financial trajectory is characterized by a strategic increase in long-term borrowing in 2017, followed by a concerted effort to bolster the equity base and stabilize total liabilities. The consistent growth in operational liabilities suggests expanding business activity, while the overall shift in the capital structure points toward a more conservative leverage profile by the end of the period.

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