Becton, Dickinson & Co. (NYSE:BDX)

Return on Assets (ROA)

The ROA experienced a decline starting from 3.81% in 2016 to a low of 0.58% in 2018, indicating a reduction in the company's efficiency in generating profit from its assets during this period. Subsequently, there was a recovery, with ROA rising to 3.88% by 2021, suggesting an improvement in asset utilization and profitability.

Financial Leverage

Financial leverage showed a consistent downward trend from 3.35 in 2016 to 2.28 in 2021. This decline indicates a reduction in the use of debt relative to equity, signifying a strengthening of the company’s equity base relative to its debt obligations over the six-year span.

Return on Equity (ROE)

The ROE followed a trajectory similar to ROA, starting at 12.79% in 2016 before dropping sharply to 1.48% in 2018. This drop reflects diminished profitability for shareholders during these years. Following this, the ROE showed a gradual recovery, reaching 8.84% in 2021, indicating enhanced returns to equity investors, though still below the initial 2016 level.

Net Profit Margin

The net profit margin exhibited notable fluctuations over the analyzed period. Starting at 7.82% in 2016, it increased to 9.1% in 2017, followed by a sharp decline to 1.95% in 2018. The margin rebounded to 7.13% in 2019 but declined again to 5.11% in 2020 before reaching a peak of 10.33% in 2021. This pattern suggests periods of volatility in profitability with an overall improving trend toward the end of the period.

Asset Turnover

Asset turnover ratios remained relatively low and stable, beginning at 0.49 in 2016 and decreasing to 0.3 by 2018. The ratio then fluctuated slightly around the low 0.3 range through 2020, before rising modestly to 0.38 in 2021. This indicates a low but somewhat consistent efficiency in generating revenue from assets, with a slight improvement in the last year.

Financial Leverage

Financial leverage demonstrated a declining trend throughout the period, starting at 3.35 in 2016 and gradually decreasing each year to 2.28 by 2021. This steady reduction implies a strategy towards reduced reliance on debt or financial obligations, potentially lowering risk associated with leverage.

Return on Equity (ROE)

ROE showed a generally downward trend from 12.79% in 2016 to a low of 1.48% in 2018, mirroring the dip seen in net profit margin. Partial recovery occurred thereafter, with ROE rising to 5.85% in 2019, then falling to 3.68% in 2020, and finally improving to 8.84% in 2021. The movements in ROE correspond with changes in profitability and leverage, suggesting the company's equity returns were influenced by fluctuating profit margins and efforts to manage leverage.

The financial data for the analyzed periods reveals several notable trends and fluctuations across key performance indicators.

Tax Burden

The tax burden ratio demonstrated significant variability, beginning at 0.91 in 2016, peaking sharply at 1.13 in 2017, and plunging to a low of 0.27 in 2018. This was followed by a rebound to levels slightly above 0.9 in 2019 through 2021, indicating fluctuating effective tax rates or tax-related adjustments during these years.

Interest Burden

The interest burden ratio showed a general decline from 0.73 in 2016 to a trough of 0.62 in 2018 and 2019, suggesting improved control over interest expenses or reduced debt costs. However, there was an increase to 0.83 by 2021, which may indicate higher interest expenses or increased leverage.

EBIT Margin

The EBIT margin experienced a downward trend from 11.71% in 2016 to its lowest point at 8.84% in 2020, reflecting decreased operating profitability over this period. A notable recovery occurred in 2021, rising sharply to 13.39%, which could suggest improved operational efficiency or favorable market conditions in that year.

Asset Turnover

Asset turnover ratios declined from 0.49 in 2016 to a low of approximately 0.30 in 2018, maintaining relatively stable levels near 0.32-0.33 until 2020. In 2021, a modest increase to 0.38 was observed, indicating slightly more effective utilization of asset base in generating revenue at the end of the period.

Financial Leverage

The financial leverage ratio consistently decreased from 3.35 in 2016 to 2.27 in 2020, stabilizing near 2.28 in 2021. This declining trend suggests reduced reliance on debt financing or a shrinking equity multiplier, which could reflect a strategy to lower financial risk or deleverage the balance sheet.

Return on Equity (ROE)

ROE experienced substantial volatility, starting at 12.79% in 2016 and dropping sharply to 1.48% in 2018. It partially recovered to 5.85% in 2019, dipped again to 3.68% in 2020, and climbed to 8.84% in 2021. This trend mirrors profitability challenges and fluctuating financial structure impacts over the period, with some signs of stabilization towards the end.

Net Profit Margin

The net profit margin exhibited considerable fluctuations over the six-year period. Starting at 7.82% in 2016, it increased to 9.1% in 2017, indicating improved profitability. However, a sharp decline occurred in 2018, dropping to 1.95%. Subsequently, the margin recovered somewhat to 7.13% in 2019, fell again to 5.11% in 2020, and finally increased significantly to reach 10.33% in 2021. This pattern suggests volatility in profit efficiency, with the most recent year showing the strongest performance in this metric.

Asset Turnover

Asset turnover ratios remained relatively stable but low throughout the period. Beginning at 0.49 in 2016, there was a steady decline to 0.3 in 2018, followed by minor fluctuations between 0.32 and 0.33 during 2017-2020. In 2021, asset turnover improved slightly to 0.38. Overall, the lower turnover ratios imply modest efficiency in utilizing assets to generate sales, with a slight upward trend in the latest year.

Return on Assets (ROA)

ROA closely mirrored the fluctuations seen in net profit margin, reflecting changes in overall asset efficiency in generating profit. ROA started at 3.81% in 2016 and declined to 2.92% in 2017, sharply decreasing further to 0.58% in 2018. Recovery was observed in 2019 with 2.38%, but the figure dipped again to 1.62% in 2020 before rising significantly to 3.88% in 2021. The trends indicate variability in how effectively assets contributed to net income, aligning with profit margin trends over the years.

The financial data reveals several notable trends over the analyzed periods, reflecting variations in profitability, efficiency, and financial burden indicators.

Tax Burden

The tax burden ratio exhibited significant volatility, starting at 0.91 in 2016, peaking sharply at 1.13 in 2017, dropping markedly to 0.27 in 2018, and then stabilizing in a range between 0.89 and 1.05 from 2019 to 2021. The sharp decline in 2018 suggests an exceptional tax event or adjustment, followed by normalization in subsequent years.

Interest Burden

This ratio demonstrated a declining trend from 0.73 in 2016 to a low of 0.62 in 2018, indicating improving ability to cover interest expenses. However, from 2019 onward, the interest burden ratio increased again, reaching 0.83 in 2021, suggesting increased interest expense pressure in recent periods.

EBIT Margin

The EBIT margin showed an overall fluctuating pattern. It rose from 11.71% in 2016 to 12.38% in 2017, then declined consistently until 2020, hitting a low of 8.84%. A substantial recovery was observed in 2021, with the margin increasing to 13.39%, the highest in the given timeframe, indicating improved operational profitability.

Asset Turnover

Asset turnover ratio shows a decline from 0.49 in 2016 to 0.30 in 2018, reflecting reduced efficiency in generating sales from assets. This ratio remained relatively stable around 0.32 to 0.33 in the following years, with a slight improvement to 0.38 in 2021, pointing towards a modest recovery in asset utilization.

Return on Assets (ROA)

ROA declined sharply from 3.81% in 2016 to 0.58% in 2018, mirroring the trends seen in EBIT margin and asset turnover. It experienced some recovery afterwards but remained volatile, ending at 3.88% in 2021, slightly surpassing the initial level. This suggests a turnaround and better overall efficiency in asset use and profitability by the end of the period.

Overall, the data indicates a challenging period between 2017 and 2020 marked by declining profit margins, decreased asset efficiency, and increased tax and interest burdens, followed by a period of recovery and improvement in 2021. The elevated EBIT margin and improved return on assets in 2021 highlight a positive shift in the company’s financial performance.

Tax Burden

The Tax Burden ratio shows notable fluctuations over the observed periods. Starting at 0.91 in 2016, it peaked sharply at 1.13 in 2017, which is an unusual value exceeding 1.0, then considerably declined to 0.27 in 2018. Subsequently, it recovered to just above 1.0 in 2019 before decreasing slightly to 0.89 in 2020 and modestly increasing again to 0.93 in 2021. This variability suggests inconsistent tax expense relative to earnings before tax.

Interest Burden

The Interest Burden ratio experienced a gradual decline from 0.73 in 2016 to its lowest point of 0.62 in 2018, indicating a reduction in the proportion of EBIT retained after interest expenses during that period. It stabilized at 0.65 during 2019 and 2020, before rising significantly to 0.83 in 2021, which implies improved earnings retention after interest costs in the most recent year.

EBIT Margin

EBIT Margin displayed a general decreasing trend from 11.71% in 2016 to 8.84% in 2020, indicating a contraction in operating profitability over these years. However, in 2021, there was a significant rebound to 13.39%, the highest margin within the observed timeframe, suggesting a strong recovery or operational improvement.

Net Profit Margin

Net Profit Margin exhibited significant volatility. Beginning at 7.82% in 2016, it rose to 9.1% in 2017 but then dropped sharply to 1.95% in 2018. This adverse decline was followed by a recovery to 7.13% in 2019 and a moderate dip to 5.11% in 2020. The margin surged again to 10.33% in 2021, reflecting enhanced net profitability in the latest period.