Return on Equity (ROE)
since 2005
Calculation
Becton, Dickinson & Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2021 | 8.84% | = | 100 | × | 2,092) | ÷ | 23,677) |
| Sep 30, 2020 | 3.68% | = | 100 | × | 874) | ÷ | 23,765) |
| Sep 30, 2019 | 5.85% | = | 100 | × | 1,233) | ÷ | 21,081) |
| Sep 30, 2018 | 1.48% | = | 100 | × | 311) | ÷ | 20,994) |
| Sep 30, 2017 | 8.50% | = | 100 | × | 1,100) | ÷ | 12,948) |
| Sep 30, 2016 | 12.79% | = | 100 | × | 976) | ÷ | 7,633) |
| Sep 30, 2015 | 9.70% | = | 100 | × | 695) | ÷ | 7,164) |
| Sep 30, 2014 | 23.45% | = | 100 | × | 1,185) | ÷ | 5,053) |
| Sep 30, 2013 | 25.64% | = | 100 | × | 1,293) | ÷ | 5,043) |
| Sep 30, 2012 | 28.29% | = | 100 | × | 1,170) | ÷ | 4,136) |
| Sep 30, 2011 | 26.32% | = | 100 | × | 1,271) | ÷ | 4,828) |
| Sep 30, 2010 | 24.24% | = | 100 | × | 1,318) | ÷ | 5,435) |
| Sep 30, 2009 | 23.95% | = | 100 | × | 1,232) | ÷ | 5,143) |
| Sep 30, 2008 | 22.83% | = | 100 | × | 1,127) | ÷ | 4,936) |
| Sep 30, 2007 | 20.40% | = | 100 | × | 890) | ÷ | 4,362) |
| Sep 30, 2006 | 19.61% | = | 100 | × | 752) | ÷ | 3,836) |
| Sep 30, 2005 | 21.99% | = | 100 | × | 722) | ÷ | 3,284) |
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 stark bifurcation in the return on equity (ROE) trajectory. The period is characterized by an initial decade of high, stable returns followed by a significant contraction driven primarily by a substantial increase in the shareholders' equity base.
- High Efficiency Period (2005–2014)
- Between 2005 and 2014, ROE remained consistently strong, oscillating between 19.61% and 28.29%. During this interval, net income generally trended upward from 722 million to 1,185 million, while shareholders' equity grew at a measured pace from 3,284 million to 5,053 million. The peak ROE of 28.29% achieved in 2012 reflects a period of optimal capital efficiency relative to the equity invested.
- Equity Expansion and ROE Compression (2015–2018)
- A significant structural shift occurred starting in 2015, marked by a sharp decline in ROE to 9.70%, which eventually reached a nadir of 1.48% in 2018. While net income experienced volatility—including a severe drop to 311 million in 2018—the primary driver of the ROE compression was the rapid expansion of shareholders' equity. Equity grew from 5,053 million in 2014 to 20,994 million in 2018, a nearly fourfold increase that substantially diluted the return ratio.
- Profitability Recovery and New Baseline (2019–2021)
- From 2019 to 2021, a strong recovery in net income is observed, culminating in a period high of 2,092 million in 2021. Despite this surge in earnings, the ROE only recovered to 8.84%. This indicates that the significantly larger equity base, which stabilized around 23,677 million, has established a new, lower baseline for ROE, preventing the ratio from returning to the levels seen in the first decade of the analysis.
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Comparison to Competitors
Becton, Dickinson & Co., ROE, 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 | 8.84% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Sep 30, 2020 | 3.68% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Sep 30, 2019 | 5.85% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Sep 30, 2018 | 1.48% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Sep 30, 2017 | 8.50% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Sep 30, 2016 | 12.79% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Sep 30, 2015 | 9.70% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Sep 30, 2014 | 23.45% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Sep 30, 2013 | 25.64% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Sep 30, 2012 | 28.29% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Sep 30, 2011 | 26.32% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Sep 30, 2010 | 24.24% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Sep 30, 2009 | 23.95% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Sep 30, 2008 | 22.83% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Sep 30, 2007 | 20.40% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Sep 30, 2006 | 19.61% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Sep 30, 2005 | 21.99% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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., ROE, long-term trends, comparison to sector (health care equipment & services)
| Becton, Dickinson & Co. | Health Care Equipment & Services | |
|---|---|---|
| Sep 30, 2021 | 8.84% | 17.28% |
| Sep 30, 2020 | 3.68% | 15.80% |
| Sep 30, 2019 | 5.85% | 15.85% |
| Sep 30, 2018 | 1.48% | 13.28% |
| Sep 30, 2017 | 8.50% | 12.21% |
| Sep 30, 2016 | 12.79% | 10.70% |
| Sep 30, 2015 | 9.70% | 11.84% |
| Sep 30, 2014 | 23.45% | 13.81% |
| Sep 30, 2013 | 25.64% | 14.22% |
| Sep 30, 2012 | 28.29% | 17.99% |
| Sep 30, 2011 | 26.32% | 17.02% |
| Sep 30, 2010 | 24.24% | 17.62% |
| Sep 30, 2009 | 23.95% | 19.50% |
| Sep 30, 2008 | 22.83% | 17.63% |
| Sep 30, 2007 | 20.40% | 20.02% |
| Sep 30, 2006 | 19.61% | 16.70% |
| Sep 30, 2005 | 21.99% | 16.22% |
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., ROE, long-term trends, comparison to industry (health care)
| Becton, Dickinson & Co. | Health Care | |
|---|---|---|
| Sep 30, 2021 | 8.84% | 25.44% |
| Sep 30, 2020 | 3.68% | 16.70% |
| Sep 30, 2019 | 5.85% | 23.30% |
| Sep 30, 2018 | 1.48% | 21.27% |
| Sep 30, 2017 | 8.50% | 13.77% |
| Sep 30, 2016 | 12.79% | 18.53% |
| Sep 30, 2015 | 9.70% | 18.52% |
| Sep 30, 2014 | 23.45% | 19.17% |
| Sep 30, 2013 | 25.64% | 18.81% |
| Sep 30, 2012 | 28.29% | 18.20% |
| Sep 30, 2011 | 26.32% | 15.90% |
| Sep 30, 2010 | 24.24% | 14.85% |
| Sep 30, 2009 | 23.95% | 20.14% |
| Sep 30, 2008 | 22.83% | 20.29% |
| Sep 30, 2007 | 20.40% | 17.87% |
| Sep 30, 2006 | 19.61% | 20.49% |
| Sep 30, 2005 | 21.99% | 18.28% |
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).