Name: Becton, Dickinson & Co. (NYSE:BDX) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Becton, Dickinson & Co., consolidated cash flow statement

US$ in millions

12 months ended:	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Depreciation and amortization	2,273)	2,154)	2,253)	1,978)	1,088)	1,114)
Share-based compensation	237)	244)	261)	322)	174)	196)
Deferred income taxes	(304)	(302)	(381)	(240)	(236)	(426)
Trade receivables, net	(95)	(48)	(51)	(170)	(93)	(128)
Inventories	(104)	(125)	(149)	246)	(46)	69)
Prepaid expenses and other	(186)	81)	299)	(46)	(366)	90)
Accounts payable, income taxes and other liabilities	687)	205)	(470)	867)	134)	368)
Change in operating assets and liabilities	302)	113)	(371)	897)	(371)	399)
Pension obligation	71)	95)	(123)	(263)	84)	(32)
Excess tax benefits from payments under share-based compensation plans	15)	52)	55)	78)	77)	—)
Lease contract modification-related charge	—)	—)	—)	—)	748)	—)
Gain on sale of Vyaire interest	—)	—)	—)	(303)	—)	—)
Gain on sale of business	—)	—)	(336)	—)	—)	—)
Product liability-related charges	361)	378)	914)	—)	—)	—)
Other, net	(400)	(69)	(175)	85)	(114)	332)
Adjustments to net income to derive net cash provided by operating activities	2,555)	2,665)	2,097)	2,554)	1,450)	1,583)
Net cash provided by operating activities	4,647)	3,539)	3,330)	2,865)	2,550)	2,559)
Capital expenditures	(1,231)	(810)	(957)	(895)	(727)	(693)
Acquisitions, net of cash acquired	(508)	(164)	—)	(15,281)	(174)	—)
Proceeds from divestitures, net	—)	—)	477)	534)	165)	158)
Other, net	(141)	(258)	(261)	(187)	(147)	(134)
Net cash used for investing activities	(1,880)	(1,232)	(741)	(15,829)	(883)	(669)
Change in credit facility borrowings	—)	(485)	485)	—)	(200)	(500)
Proceeds from long-term debt and term loans	4,869)	3,389)	2,224)	5,086)	11,462)	—)
Payments of debt and term loans	(5,112)	(4,664)	(4,744)	(3,996)	(3,980)	(752)
Proceeds from issuance of equity securities	—)	2,917)	—)	—)	4,827)	—)
Repurchase of common stock	(1,750)	—)	—)	—)	(220)	—)
Excess tax benefit from payments under share-based compensation plans	—)	—)	—)	—)	—)	86)
Dividends paid	(1,048)	(1,026)	(984)	(927)	(677)	(562)
Other, net	(265)	(109)	(204)	(221)	(235)	(33)
Net cash provided by (used for) financing activities	(3,306)	22)	(3,223)	(58)	10,977)	(1,761)
Effect of exchange rate changes on cash and equivalents and restricted cash	14)	(3)	(12)	(17)	(6)	(12)
Net increase (decrease) in cash and equivalents and restricted cash	(525)	2,326)	(646)	(13,039)	12,638)	117)
Opening cash and equivalents and restricted cash	2,917)	590)	1,236)	14,179)	1,541)	1,424)
Closing cash and equivalents and restricted cash	2,392)	2,916)	590)	1,140)	14,179)	1,541)

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).

Operating cash flow exhibits a strong and consistent upward trajectory, increasing from 2.56 billion in 2016 to 4.65 billion in 2021. This growth is supported by significant non-cash adjustments, most notably depreciation and amortization, which increased from 1.11 billion in 2016 to 2.27 billion in 2021, indicating a substantial asset base and consistent non-cash expense recognition.

Operating Performance and Cash Conversion: While net income experienced significant volatility—dropping to 311 million in 2018 before peaking at 2.09 billion in 2021—the net cash provided by operating activities remained resilient and grew steadily. The divergence between net income and operating cash flow is primarily driven by high depreciation and amortization expenses and periodic non-recurring items, such as product liability-related charges which became a recurring factor from 2019 through 2021.
Strategic Investment and Acquisition Activity: A major capital allocation event occurred in 2018, marked by net acquisitions totaling 15.28 billion. This event was financed through a combination of debt and equity; specifically, the company secured 11.46 billion in long-term debt and 4.83 billion in equity issuance in 2017. This financing strategy led to a peak closing cash balance of 14.18 billion in 2017, which was subsequently utilized for the 2018 acquisition, reducing closing cash to 1.14 billion by September 2018.
Capital Expenditure and Asset Management: Capital expenditures demonstrate a general upward trend, rising from 693 million in 2016 to 1.23 billion in 2021. This suggests a sustained commitment to upgrading infrastructure and expanding capacity. Proceeds from divestitures provided moderate inflows between 2016 and 2019, peaking at 534 million in 2018, but these inflows ceased in the subsequent two years.
Financing and Shareholder Returns: Shareholder returns have expanded consistently, with dividend payments increasing every year from 562 million in 2016 to 1.05 billion in 2021. The company has managed its debt obligations through steady repayments, averaging between 4 billion and 5 billion annually from 2018 to 2021. Additionally, a significant shift in capital return strategy is observed in 2021, with common stock repurchases increasing to 1.75 billion.

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