Return on Assets (ROA)
since 2005
Calculation
Becton, Dickinson & Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2021 | 3.88% | = | 100 | × | 2,092) | ÷ | 53,866) |
| Sep 30, 2020 | 1.62% | = | 100 | × | 874) | ÷ | 54,012) |
| Sep 30, 2019 | 2.38% | = | 100 | × | 1,233) | ÷ | 51,765) |
| Sep 30, 2018 | 0.58% | = | 100 | × | 311) | ÷ | 53,904) |
| Sep 30, 2017 | 2.92% | = | 100 | × | 1,100) | ÷ | 37,734) |
| Sep 30, 2016 | 3.81% | = | 100 | × | 976) | ÷ | 25,586) |
| Sep 30, 2015 | 2.59% | = | 100 | × | 695) | ÷ | 26,820) |
| Sep 30, 2014 | 9.52% | = | 100 | × | 1,185) | ÷ | 12,447) |
| Sep 30, 2013 | 10.64% | = | 100 | × | 1,293) | ÷ | 12,149) |
| Sep 30, 2012 | 10.30% | = | 100 | × | 1,170) | ÷ | 11,361) |
| Sep 30, 2011 | 12.19% | = | 100 | × | 1,271) | ÷ | 10,430) |
| Sep 30, 2010 | 13.65% | = | 100 | × | 1,318) | ÷ | 9,651) |
| Sep 30, 2009 | 13.24% | = | 100 | × | 1,232) | ÷ | 9,305) |
| Sep 30, 2008 | 14.24% | = | 100 | × | 1,127) | ÷ | 7,913) |
| Sep 30, 2007 | 12.14% | = | 100 | × | 890) | ÷ | 7,329) |
| Sep 30, 2006 | 11.02% | = | 100 | × | 752) | ÷ | 6,825) |
| Sep 30, 2005 | 11.90% | = | 100 | × | 722) | ÷ | 6,072) |
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
The financial performance from 2005 to 2021 is characterized by a significant divergence between asset accumulation and operational efficiency. While the asset base expanded substantially over the sixteen-year period, the Return on Assets (ROA) experienced a structural decline, transitioning from a period of high efficiency to a period of lower, more volatile returns.
- Asset Growth and Capital Expansion
- A massive expansion of the balance sheet is observed, with total assets increasing from 6,072 million USD in 2005 to 53,866 million USD by 2021. This growth occurred in two primary phases: a steady increase between 2005 and 2014, followed by an abrupt surge in 2015 where assets more than doubled from 12,447 million USD to 26,820 million USD. A second significant expansion occurred between 2016 and 2018, with assets peaking at 53,904 million USD.
- Net Income Trajectory
- Net income demonstrated moderate growth through 2010, peaking at 1,318 million USD. However, the subsequent decade was marked by increased volatility. Notable contractions occurred in 2015 (695 million USD) and reached a period low in 2018 (311 million USD). A strong recovery is evident in the final years of the sequence, culminating in a period high of 2,092 million USD in 2021.
- Return on Assets (ROA) Analysis
- The ROA reflects a clear downward shift in asset productivity. Between 2005 and 2011, the company maintained a strong ROA, consistently exceeding 10% and peaking at 14.24% in 2008. Beginning in 2012, a steady decline began, which accelerated sharply in 2015 as the asset base expanded. The efficiency ratio reached a critical low of 0.58% in 2018, coinciding with the lowest net income and near-peak asset levels. While ROA improved to 3.88% by 2021, it remains significantly below the historical levels observed prior to 2014.
- Correlation of Financial Metrics
- The data indicates that the rapid expansion of total assets was not matched by a proportional increase in net income, leading to the dilution of ROA. The sharp drop in ROA starting in 2015 suggests that the capital investments or acquisitions that drove asset growth did not immediately translate into commensurate earnings growth, resulting in a long-term reduction in the efficiency of asset utilization.
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Comparison to Competitors
Becton, Dickinson & Co., ROA, long-term trends, comparison to competitors
| Becton, Dickinson & Co. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Sep 30, 2021 | 3.88% | 9.40% | 6.26% | 12.58% | 3.87% | 8.15% |
| Sep 30, 2020 | 1.62% | 6.20% | 5.28% | 9.50% | 5.28% | 7.81% |
| Sep 30, 2019 | 2.38% | 5.43% | 6.21% | 14.17% | 5.16% | 7.96% |
| Sep 30, 2018 | 0.58% | 3.53% | 5.24% | 14.37% | 3.40% | 7.87% |
| Sep 30, 2017 | 2.92% | 0.63% | 5.45% | 11.46% | 4.04% | 7.59% |
| Sep 30, 2016 | 3.81% | 2.66% | 3.79% | 11.34% | 3.55% | 5.71% |
| Sep 30, 2015 | 2.59% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Sep 30, 2014 | 9.52% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Sep 30, 2013 | 10.64% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Sep 30, 2012 | 10.30% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Sep 30, 2011 | 12.19% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Sep 30, 2010 | 13.65% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Sep 30, 2009 | 13.24% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Sep 30, 2008 | 14.24% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Sep 30, 2007 | 12.14% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Sep 30, 2006 | 11.02% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Sep 30, 2005 | 11.90% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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).
Comparison to Sector (Health Care Equipment & Services)
Becton, Dickinson & Co., ROA, long-term trends, comparison to sector (health care equipment & services)
| Becton, Dickinson & Co. | Health Care Equipment & Services | |
|---|---|---|
| Sep 30, 2021 | 3.88% | 7.28% |
| Sep 30, 2020 | 1.62% | 6.62% |
| Sep 30, 2019 | 2.38% | 6.77% |
| Sep 30, 2018 | 0.58% | 5.72% |
| Sep 30, 2017 | 2.92% | 5.00% |
| Sep 30, 2016 | 3.81% | 4.37% |
| Sep 30, 2015 | 2.59% | 4.93% |
| Sep 30, 2014 | 9.52% | 6.03% |
| Sep 30, 2013 | 10.64% | 6.64% |
| Sep 30, 2012 | 10.30% | 7.54% |
| Sep 30, 2011 | 12.19% | 7.54% |
| Sep 30, 2010 | 13.65% | 7.69% |
| Sep 30, 2009 | 13.24% | 8.84% |
| Sep 30, 2008 | 14.24% | 7.51% |
| Sep 30, 2007 | 12.14% | 8.92% |
| Sep 30, 2006 | 11.02% | 7.40% |
| Sep 30, 2005 | 11.90% | 7.94% |
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).
Comparison to Industry (Health Care)
Becton, Dickinson & Co., ROA, long-term trends, comparison to industry (health care)
| Becton, Dickinson & Co. | Health Care | |
|---|---|---|
| Sep 30, 2021 | 3.88% | 9.46% |
| Sep 30, 2020 | 1.62% | 5.81% |
| Sep 30, 2019 | 2.38% | 8.32% |
| Sep 30, 2018 | 0.58% | 7.90% |
| Sep 30, 2017 | 2.92% | 5.19% |
| Sep 30, 2016 | 3.81% | 7.31% |
| Sep 30, 2015 | 2.59% | 7.71% |
| Sep 30, 2014 | 9.52% | 8.59% |
| Sep 30, 2013 | 10.64% | 8.76% |
| Sep 30, 2012 | 10.30% | 8.09% |
| Sep 30, 2011 | 12.19% | 7.36% |
| Sep 30, 2010 | 13.65% | 7.24% |
| Sep 30, 2009 | 13.24% | 9.73% |
| Sep 30, 2008 | 14.24% | 9.50% |
| Sep 30, 2007 | 12.14% | 8.88% |
| Sep 30, 2006 | 11.02% | 10.52% |
| Sep 30, 2005 | 11.90% | 9.67% |
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).