Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Becton, Dickinson & Co., consolidated statement of comprehensive income
US$ in millions
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 performance from 2016 to 2021 is characterized by significant volatility in both net income and other comprehensive income, culminating in a substantial peak in the final fiscal year. While the general trajectory of net income shows an upward trend over the six-year period, the total comprehensive income was frequently tempered by fluctuations in non-operational adjustments.
- Net Income Trends
- Net income exhibited considerable instability, starting at 976 million in 2016 and reaching a peak of 2,092 million in 2021. A notable contraction occurred in 2018, where net income dropped to 311 million, representing the lowest point in the observed period. This was followed by a recovery to 1,233 million in 2019 and a subsequent dip to 874 million in 2020, before the sharp increase in 2021.
- Analysis of Other Comprehensive Income (OCI)
- OCI acted as a recurring volatility driver, remaining negative in four of the six years analyzed. The most significant negative impact occurred in 2019, with a loss of 374 million. This trend reversed sharply in 2021, with OCI contributing a positive 460 million to the overall result.
- Currency and Pension Adjustments
- Foreign currency translation adjustments were predominantly negative, with significant losses in 2018 and 2020, though they shifted to a gain of 124 million in 2021. Similarly, defined benefit pension and postretirement plans showed extreme variance, oscillating between a loss of 275 million in 2019 and a gain of 255 million in 2021.
- Cash Flow Hedges
- The impact of cash flow hedges remained relatively minor compared to other OCI components until 2020, when a loss of 67 million was recorded. This was followed by a reversal to a gain of 81 million in 2021.
- Comprehensive Income Correlation
- Comprehensive income closely mirrored the movements of net income but was consistently modified by OCI. In 2018, OCI losses exacerbated the decline in net income, reducing comprehensive income to 125 million. Conversely, in 2021, the alignment of record net income and positive OCI resulted in a comprehensive income of 2,552 million, the highest value in the series.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?