Becton, Dickinson & Co. (NYSE:BDX)

Total Asset Turnover

The reported total asset turnover shows a declining trend from 0.49 in 2016 to a low of 0.30 in 2018, followed by slight improvement to 0.38 by 2021. The adjusted total asset turnover mirrors this pattern closely, indicating consistent lower asset efficiency in the intermediate years with some recovery towards the end of the period.

Current Ratio

The reported current ratio exhibits an unusual spike in 2017 to 5.58, significantly higher than the surrounding years where it fluctuates between roughly 1.0 and 1.5. This indicates an abnormal increase in short-term liquidity in 2017, which normalizes thereafter. The adjusted current ratio shows the same pattern, confirming this anomaly and subsequent stabilization.

Debt to Equity

Both reported and adjusted debt to equity ratios consistently decline from 2016 to 2021, falling from around 1.5 to approximately 0.74. This suggests a gradual reduction in leverage over the period, pointing to a more conservative capital structure and potentially lower financial risk by 2021.

Debt to Capital

The reported and adjusted debt to capital ratios also show a decreasing trend, dropping from about 0.6 in 2016 to 0.42-0.43 by 2021. This further supports the observation of reduced reliance on debt financing over the years.

Financial Leverage

Financial leverage measures similarly decline from 3.35 reported (3.03 adjusted) in 2016 to about 2.28 (2.15 adjusted) in 2021. This steady reduction aligns with the decrease in debt ratios, indicating overall deleveraging and possibly reduced risk exposure.

Net Profit Margin

The reported net profit margin sees fluctuations, with a peak at 9.1% in 2017, a sharp decline to 1.95% in 2018, moderate recovery from 2019 to 2020, and a notable increase to 10.33% in 2021. Adjusted net profit margin reflects more volatility, including a negative margin in 2018 (-0.69%), before recovering to an 11.08% gain in 2021. These figures indicate variability in profitability with a strong rebound in the latest period.

Return on Equity (ROE)

Reported ROE declines sharply from 12.79% in 2016 to 1.48% in 2018, before recovering to 8.84% in 2021. Adjusted ROE follows a similar pattern but includes a negative value in 2018 (-0.47%) and generally lower returns in the middle years. The trend suggests fluctuating equity profitability with recovery in recent years.

Return on Assets (ROA)

The reported ROA decreases from 3.81% in 2016 to 0.58% in 2018, with a subsequent rise to 3.88% in 2021. The adjusted ROA is more erratic, showing negative performance in 2018 (-0.2%) but improving to 4.16% by 2021. This highlights variability in asset profitability, aligning with the profit margin and ROE trends.

Over the analyzed period, revenues experienced fluctuations with an initial decrease from 12,483 million US dollars in 2016 to 12,093 million US dollars in 2017, followed by a notable increase peaking at 20,248 million US dollars in 2021. This suggests a recovery and growth phase especially pronounced after 2017.

Total assets increased markedly from 25,586 million US dollars in 2016 to a peak near 53,904 million US dollars in 2018, then slightly declined and stabilized around the 53,800 - 54,000 million US dollars range in subsequent years. This trend indicates rapid asset accumulation in the early years followed by a plateau.

The reported total asset turnover ratio, which measures efficiency in generating revenues from assets, declined sharply from 0.49 in 2016 to 0.30 in 2018, reflecting less efficient use of assets during that rise in asset base. However, from 2018 onward, the turnover ratio improved moderately reaching 0.38 in 2021, indicating enhanced asset utilization in recent years.

Adjusted total assets closely follow the trend of reported total assets, with values congruent in magnitude and pattern. The adjusted total asset turnover ratio aligns closely with the reported turnover ratio, declining between 2016 and 2018 and subsequently improving to 0.38 by 2021. This congruence confirms the robustness of the turnover trends considering asset adjustments.

In summary, the data reflects a pattern where the company expanded its asset base significantly up to 2018, leading initially to decreased asset turnover ratios, implying less efficient asset use. Post-2018, while the asset base remained stable, improved turnover ratios alongside increasing revenues suggest a positive shift towards better asset utilization and revenue generation capability.

Revenues

Decreased slightly from 2016 to 2017, then increased steadily, peaking in 2021.

Total Assets

Nearly doubled from 2016 to 2018, then stabilized through 2021.

Reported Total Asset Turnover

Declined initially with asset growth, then improved moderately after 2018.

Adjusted Total Assets

Followed the pattern of reported total assets closely.

Adjusted Total Asset Turnover

Mirrored the reported turnover trend, confirming improved asset efficiency post-2018.

The financial data reveals fluctuations in both current assets and current liabilities over the six-year period analyzed.

Current Assets

Current assets displayed significant volatility, with a notable peak in the year ending September 30, 2017, reaching US$18,633 million. Subsequently, the value sharply decreased to US$7,411 million in 2018 and remained relatively stable with minor variations through 2019 to 2021, closing at US$8,838 million.

Current Liabilities

Current liabilities demonstrated a less volatile trend. Starting at US$4,400 million in 2016, they decreased to US$3,342 million in 2017, before increasing significantly to US$7,216 million in 2018. The liabilities then slightly declined in 2019 and increased moderately in the following years, ending at US$6,626 million in 2021.

Reported Current Ratio

The reported current ratio peaked sharply at 5.58 in 2017, reflecting the pronounced increase in current assets and decrease in liabilities. This ratio declined drastically to near parity levels around 1.03 in 2018, with a moderate upward trend resurfacing through to 2020, reaching 1.54 before lightly dropping to 1.33 in 2021. These changes indicate variability in liquidity, with a peak in working capital sufficiency in 2017, followed by stabilization in subsequent years.

Adjusted Current Assets and Adjusted Current Ratio

The adjusted current assets closely follow the trend of reported current assets, showing a similar peak in 2017 and subsequent decline and stabilization. Correspondingly, the adjusted current ratio mirrors the pattern of the reported current ratio, peaking in 2017 at 5.59 and settling to near 1.35 by 2021. This indicates that adjustments had minimal impact on the overall liquidity trend.

Overall, the data suggests a period of extraordinary liquidity in 2017, characterized by a substantial increase in current assets and decline in liabilities, followed by a return to more normalized levels in subsequent years. This pattern may reflect one-time events or changes in operational or financial strategy impacting working capital components during the observed timeline.

The financial data reveals several underlying trends in the company's capital structure from 2016 to 2021. The total debt exhibited a marked increase from 2016 to 2018, rising from approximately 11.6 billion USD to nearly 21.5 billion USD, followed by a consistent decline over the subsequent three years, reaching around 17.6 billion USD by 2021. In contrast, shareholders' equity demonstrated a steady upward progression throughout the period, beginning at 7.6 billion USD in 2016 and climbing to approximately 23.7 billion USD by 2021. This indicates a strengthening equity base over time.

Examining the reported debt to equity ratio, there is a clear downward trend from 1.51 in 2016 to 0.74 in 2021. This decrease suggests an improvement in the company's leverage position, reflecting a relative reduction in debt compared to equity. The adjusted figures, which likely account for additional liabilities or equity adjustments, mirror this pattern with the adjusted total debt peaking around 21.9 billion USD in 2018 before declining to 18.1 billion USD in 2021. Adjusted shareholders' equity also shows growth, increasing from 8.6 billion USD to 25.1 billion USD over the same period.

The adjusted debt to equity ratio similarly declines from 1.38 in 2016, stabilizing near 0.72 in 2021. The consistency between reported and adjusted leverage ratios implies that adjustments have a proportional effect on both debt and equity, maintaining similar leverage dynamics. Overall, the trends indicate a deleveraging process, with the company reducing its relative debt burden while concurrently growing equity, suggesting a potentially stronger financial position and improved capacity to manage financial obligations.

Total Debt

Increased significantly from 2016 to 2018, then steadily decreased through 2021.

Shareholders’ Equity

Showed continuous growth across all periods, nearly tripling from 2016 to 2021.

Reported Debt to Equity Ratio

Exhibited a consistent decline, indicating reduced leverage and an improving capital structure.

Adjusted Total Debt and Equity

Followed similar trends as reported figures, with debt peaking around 2018 before declining and equity steadily increasing.

Adjusted Debt to Equity Ratio

Declined correspondingly, reinforcing the trend of deleveraging and improved equity strength.

The analysis of the financial data reveals several key trends regarding the company's debt and capital structure over the period from 2016 to 2021.

Total Debt

Total debt exhibited a significant increase from 2016 to 2018, rising from $11,551 million to a peak of $21,495 million. Following 2018, total debt showed a downward trend, decreasing steadily each year to $17,610 million by 2021.

Total Capital

Total capital grew considerably over the entire period, starting at $19,184 million in 2016 and reaching $41,287 million in 2021. The most substantial growth occurred between 2016 and 2018, after which total capital stabilized somewhat but remained relatively high.

Reported Debt to Capital Ratio

The reported debt to capital ratio demonstrated a consistent decline from 0.60 in 2016 to 0.43 in 2020 and 2021. This indicates a reduction in the proportion of debt relative to capital over the years, reflecting an improving leverage position.

Adjusted Total Debt

Adjusted total debt figures closely follow the pattern of reported total debt, with an increase through 2018 to a plateau, then a decline through 2021. Starting at $11,801 million in 2016, adjusted total debt rose to a high of $21,951 million in 2018 and then fell to $18,080 million by 2021.

Adjusted Total Capital

Adjusted total capital mirrored the trend of reported total capital, growing significantly from $20,356 million in 2016 to a peak of $45,390 million in 2018, before a slight reduction and stabilization around $43,202 million in 2021.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased steadily from 0.58 in 2016 to 0.42 in 2021, indicating improved financial leverage when considering adjustments. This trend is consistent with that of the reported ratio and underscores the company's lowered reliance on debt financing over time.

Overall, the data indicates that the company experienced notable growth in capital assets, especially up to 2018, while simultaneously managing to reduce its relative debt load in subsequent years. The declining debt to capital ratios, both reported and adjusted, suggest an enhanced capital structure with diminishing leverage risks during this period.

Total Assets

The total assets of the company showed a marked increase from 2016 to 2018, rising from $25,586 million to $53,904 million. This was followed by a slight decline in 2019 to $51,765 million, before increasing again to $54,012 million in 2020 and slightly decreasing to $53,866 million in 2021. Overall, the asset base more than doubled over the six-year period, reflecting significant growth and investment.

Shareholders’ Equity

Shareholders’ equity experienced substantial growth from $7,633 million in 2016 to $23,677 million in 2021. The increase was particularly pronounced between 2016 and 2018, where equity nearly tripled. After 2018, growth moderated but remained positive, suggesting consistent reinvestment of earnings or equity financing. The equity values stabilized around the $23,600–$23,700 million range in the last two years.

Reported Financial Leverage

The reported financial leverage ratio decreased steadily from 3.35 in 2016 to 2.27 in 2020, reflecting a reduction in reliance on debt or an improvement in equity funding relative to assets. In 2021, the ratio slightly increased to 2.28, but overall the trend indicates a consistent strengthening of the balance sheet through lowered leverage.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to the reported total assets, increasing from $25,897 million in 2016 to $54,435 million in 2018, with a slight decline in 2019 to $52,330 million. The adjusted assets then increased modestly in 2020 to $54,092 million and remained relatively stable at $53,942 million in 2021. The adjusted figures confirm the overall expansion trend observed in total assets.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity rose sharply from $8,555 million in 2016 to $23,439 million in 2018. There was a slight decrease in 2019 to $23,047 million, followed by continued growth reaching $25,411 million in 2020 before a minor reduction to $25,122 million in 2021. This suggests a general strengthening of equity on an adjusted basis, with minor fluctuations indicating possible changes in fair value or accounting adjustments.

Adjusted Financial Leverage

The adjusted financial leverage ratio declined consistently from 3.03 in 2016 to 2.13 in 2020, indicating improved capital structure and decreased financial risk. A slight uptick to 2.15 in 2021 did not significantly alter this downward trend. The adjustment slightly alters reported leverage figures but confirms the company’s gradual deleveraging strategy over the period.

The financial data over the six-year period reveal notable fluctuations in profitability and revenue figures. Revenues exhibit an overall growth trend, increasing from approximately 12.5 billion USD in 2016 to over 20 billion USD in 2021, with a dip observed in 2017. Net income figures demonstrate considerable variability, ranging from a low point of 311 million USD in 2018 to a peak of 2,092 million USD in 2021. This volatility is mirrored in the reported net profit margin, which fluctuates between 1.95% in 2018 and 10.33% in 2021.

Adjusted net income shows even more pronounced variability, with a negative value recorded in 2018 (-111 million USD) and a substantial increase to 2,243 million USD in 2021. The corresponding adjusted net profit margin aligns with these movements, dipping into negative territory in 2018 (-0.69%) and reaching the highest adjusted margin of 11.08% by 2021. The disparity between reported and adjusted net income figures suggests the presence of non-recurring items or adjustments influencing the reported results in certain years.

Revenues

There is a clear upward trajectory over the timeframe, rising steadily except for a slight decrease in 2017. The company's ability to generate higher revenues is evident, with a significant jump in 2018 followed by continued growth through 2021.

Net Income and Reported Net Profit Margin

Net income presents substantial fluctuation, with a notable low in 2018 followed by recovery and growth. The reported net profit margin similarly varies, reflecting inconsistent profitability with a marked improvement by 2021.

Adjusted Net Income and Adjusted Net Profit Margin

The adjusted figures highlight considerable volatility, including losses in 2018 and robust gains in 2021. The wide range indicates that adjustments significantly impact profitability analysis, underscoring the influence of extraordinary items or accounting adjustments on reported earnings.

Overall Insights

The data depict a company experiencing growth in revenue but facing challenges in maintaining consistent profitability. The improvements in both reported and adjusted profit margins in the most recent year indicate enhanced operational efficiency or favorable one-time factors. The volatility in adjusted income suggests periodic restructuring or non-operational costs affecting net results.

The financial data reveal notable fluctuations and trends over the observed periods. Net income exhibited volatility, initially rising from 976 million US dollars in 2016 to 1,100 million US dollars in 2017, followed by a significant decline to 311 million US dollars in 2018. Subsequently, there was a recovery to 1,233 million US dollars in 2019, a decrease in 2020 to 874 million US dollars, and a substantial increase to 2,092 million US dollars by 2021.

Shareholders’ equity showed a consistent upward trend over the years, increasing from 7,633 million US dollars in 2016 to 23,677 million US dollars by 2021. This steady growth suggests strengthening of the company’s capital base despite the fluctuations in net income.

The reported return on equity (ROE) declined sharply from 12.79% in 2016 to 8.5% in 2017 and further to 1.48% in 2018. There was a moderate recovery in 2019 to 5.85%, followed by a drop to 3.68% in 2020, and an improvement to 8.84% in 2021. The ROE pattern mirrors the variability in net income, indicating sensitivity of profitability relative to equity.

Adjusted net income displayed considerable instability, with an increase from 282 million US dollars in 2016 to a peak of 1,211 million US dollars in 2017. This was followed by a negative figure of -111 million US dollars in 2018, signaling a loss. Partial recoveries occurred in 2019 and 2020, with figures of 223 million and 307 million US dollars respectively, culminating in a substantial rise to 2,243 million US dollars in 2021. This volatility points to significant adjustments affecting income, possibly due to non-recurring items or accounting changes.

Adjusted shareholders’ equity also rose steadily, climbing from 8,555 million US dollars in 2016 to 25,122 million US dollars in 2021. The rate of increase is consistent and slightly higher than that of the reported shareholders’ equity, indicating that adjustments may have increased the equity base.

Adjusted ROE followed a similar pattern to adjusted net income, moving from 3.3% in 2016 up to 8.75% in 2017, then turning negative at -0.47% in 2018. It recovered modestly to 0.97% in 2019 and 1.21% in 2020, before rising sharply to 8.93% in 2021. These fluctuations highlight the impact of adjustments on profitability measures and underscore periods of operational challenges and recoveries.

Summary of Key Trends

Net income and adjusted net income exhibited significant volatility with a marked downturn in 2018, followed by recovery and peak values in 2021.

Shareholders’ equity and adjusted shareholders’ equity consistently increased, reflecting capital strengthening over the period examined.

Reported and adjusted ROE mirrored the income variations, generally declining during 2017-2018, with recovery phases thereafter.

The discrepancies between reported and adjusted metrics suggest that adjustments materially affected profitability and equity, indicating the presence of significant non-operational or irregular items during certain periods.

The analyzed financial data reveals several notable trends and fluctuations over the six-year period ending in 2021.

Net Income

The net income shows a generally positive trend with variability. It started at 976 million US dollars in 2016, increased to 1,100 million in 2017, then sharply declined to 311 million in 2018. Subsequently, it rebounded to 1,233 million in 2019 before decreasing to 874 million in 2020, and then significantly increased to reach the highest value of 2,092 million in 2021.

Total Assets

Total assets experienced steady growth over the period. Starting at 25,586 million US dollars in 2016, there was a substantial increase to 37,734 million in 2017 and further to 53,904 million in 2018. This was followed by a slight decrease to 51,765 million in 2019, before resuming an upward trend to 54,012 million in 2020 and stabilizing around 53,866 million in 2021.

Reported Return on Assets (ROA)

The reported ROA fluctuated along with net income changes. It began at 3.81% in 2016, dipped to 2.92% in 2017, and dropped sharply to 0.58% in 2018. Recovery was observed in 2019 with 2.38%, though ROA decreased again to 1.62% in 2020. By 2021, the ROA returned to a robust level of 3.88%, the highest in the series.

Adjusted Net Income

The adjusted net income figures present more volatility and some divergence from reported net income. It was relatively low at 282 million in 2016 but rose strongly to 1,211 million in 2017. A negative figure of -111 million appeared in 2018, indicating an unusual loss or adjustment. The adjusted net income then resumed positive values with 223 million in 2019, 307 million in 2020, and a significant increase to 2,243 million in 2021, surpassing the reported net income for that year.

Adjusted Total Assets

Adjusted total assets closely follow the pattern of reported total assets with slight variations. From 25,897 million in 2016, adjusted assets increased steadily each year, reaching 54,042 million in 2020, and remained relatively stable at 53,942 million in 2021.

Adjusted ROA

The adjusted ROA exhibits greater variability and lower overall levels compared to the reported ROA. It started at a low 1.09% in 2016, increased to 3.18% in 2017, and turned negative at -0.2% in 2018. The figure recovered slightly to 0.43% in 2019 and increased modestly to 0.57% in 2020. The most pronounced improvement occurred in 2021, when adjusted ROA surged to 4.16%, exceeding the reported ROA for that year.

In summary, the data points to significant fluctuations in profitability metrics, particularly in 2018, which showed declines and losses in both reported and adjusted results. Despite volatility, both net income and ROA demonstrated strong recovery in 2021, indicating improved performance. Asset values steadily increased overall, suggesting growth in the company’s asset base. The divergence between reported and adjusted figures, especially in 2018, merits further investigation to understand the adjustments made and their impact on financial assessments.