Operating Profit Margin
since 2005
Calculation
Becton, Dickinson & Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2021 | 13.82% | = | 100 | × | 2,799) | ÷ | 20,248) |
| Sep 30, 2020 | 8.67% | = | 100 | × | 1,484) | ÷ | 17,117) |
| Sep 30, 2019 | 10.18% | = | 100 | × | 1,760) | ÷ | 17,290) |
| Sep 30, 2018 | 9.37% | = | 100 | × | 1,497) | ÷ | 15,983) |
| Sep 30, 2017 | 12.22% | = | 100 | × | 1,478) | ÷ | 12,093) |
| Sep 30, 2016 | 11.46% | = | 100 | × | 1,430) | ÷ | 12,483) |
| Sep 30, 2015 | 10.45% | = | 100 | × | 1,074) | ÷ | 10,282) |
| Sep 30, 2014 | 19.01% | = | 100 | × | 1,606) | ÷ | 8,446) |
| Sep 30, 2013 | 15.57% | = | 100 | × | 1,254) | ÷ | 8,054) |
| Sep 30, 2012 | 20.21% | = | 100 | × | 1,558) | ÷ | 7,708) |
| Sep 30, 2011 | 22.52% | = | 100 | × | 1,763) | ÷ | 7,829) |
| Sep 30, 2010 | 22.74% | = | 100 | × | 1,677) | ÷ | 7,372) |
| Sep 30, 2009 | 23.05% | = | 100 | × | 1,650) | ÷ | 7,161) |
| Sep 30, 2008 | 21.69% | = | 100 | × | 1,552) | ÷ | 7,156) |
| Sep 30, 2007 | 18.92% | = | 100 | × | 1,203) | ÷ | 6,360) |
| Sep 30, 2006 | 18.00% | = | 100 | × | 1,050) | ÷ | 5,835) |
| Sep 30, 2005 | 19.04% | = | 100 | × | 1,031) | ÷ | 5,415) |
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), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in millions
An analysis of the financial performance from 2005 to 2021 reveals a period of significant revenue expansion accompanied by a long-term compression of operating profit margins, followed by a recent recovery. While top-line growth remained consistent, the ability to convert that revenue into operating income experienced substantial volatility and a general downward trend for over a decade.
- Revenue Trajectory
- A sustained upward trend in revenues is observed, growing from US$ 5,415 million in 2005 to US$ 20,248 million in 2021. This represents a nearly fourfold increase in total sales over the analyzed period, indicating aggressive market expansion or significant acquisitions.
- Operating Profit Margin Cycles
- The operating profit margin transitioned through three distinct phases. From 2005 to 2010, margins were strong and generally increasing, peaking at 23.05% in 2009. A period of contraction followed between 2011 and 2015, during which the margin dropped precipitously from 22.52% to 10.45%. Between 2016 and 2020, margins remained depressed, reaching a low of 8.67% in 2020.
- Operating Income and Recent Recovery
- Despite the long-term margin decline, operating income showed a remarkable surge in the final year of the period. After years of fluctuating between US$ 1,000 million and US$ 1,700 million, operating income rose to US$ 2,799 million in 2021. This drove the operating profit margin back up to 13.82%, marking the first significant recovery in profitability since 2014.
- Efficiency Analysis
- A divergence is noted between revenue growth and operating efficiency. While revenues grew consistently, the operating profit margin declined from its peak in 2009 to its trough in 2020. This suggests that the costs associated with scaling the business grew faster than the resulting operating income for much of the last 15 years, until the corrective shift observed in 2021.
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Comparison to Competitors
Becton, Dickinson & Co., operating profit margin, long-term trends, comparison to competitors
| Becton, Dickinson & Co. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Sep 30, 2021 | 13.82% | 19.56% | 31.89% | 14.89% | 8.40% |
| Sep 30, 2020 | 8.67% | 15.48% | 24.09% | 16.57% | 8.76% |
| Sep 30, 2019 | 10.18% | 14.21% | 30.69% | 20.51% | 8.19% |
| Sep 30, 2018 | 9.37% | 11.94% | 32.21% | 22.20% | 7.71% |
| Sep 30, 2017 | 12.22% | 6.30% | 33.71% | 17.94% | 7.60% |
| Sep 30, 2016 | 11.46% | 15.27% | 34.95% | 18.35% | 7.03% |
| Sep 30, 2015 | 10.45% | 14.05% | 31.04% | 18.59% | 7.05% |
| Sep 30, 2014 | 19.01% | 12.84% | 25.56% | 22.42% | 7.92% |
| Sep 30, 2013 | 15.57% | 12.03% | 37.64% | 26.53% | 7.90% |
| Sep 30, 2012 | 20.21% | 20.28% | 40.30% | 0.00% | 8.42% |
| Sep 30, 2011 | 22.52% | 14.81% | 39.54% | 0.00% | 8.36% |
| Sep 30, 2010 | 22.74% | 17.31% | 39.29% | 0.00% | 8.41% |
| Sep 30, 2009 | 23.05% | 20.27% | 35.87% | 0.00% | 7.35% |
| Sep 30, 2008 | 21.69% | 19.28% | 35.53% | 0.00% | 6.54% |
| Sep 30, 2007 | 18.92% | 17.67% | 34.41% | 0.00% | 10.57% |
| Sep 30, 2006 | 18.00% | 9.09% | 28.81% | 0.00% | 9.88% |
| Sep 30, 2005 | 19.04% | 19.53% | 30.25% | 0.00% | 11.98% |
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), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).