Analysis of Geographic Areas
Becton, Dickinson & Co. operates in 4 regions: United States; Europe, the Middle East and Africa (EMEA); Greater Asia; and Other.
Area Asset Turnover
Becton, Dickinson & Co., asset turnover by geographic area
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| United States | 0.30 | 0.27 | 0.26 | 0.22 | 0.49 | 0.49 |
| Europe, the Middle East and Africa (EMEA) | 0.79 | 0.67 | 0.70 | 0.58 | 0.59 | 0.81 |
| Greater Asia | 1.97 | 1.69 | 2.05 | 2.89 | 3.02 | 2.89 |
| Other | 1.46 | 1.20 | 1.21 | 2.26 | 2.15 | 1.76 |
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).
An analysis of geographic area asset turnover reveals significant disparities in operational efficiency across different global markets between 2016 and 2021. While some regions maintain high turnover rates, others exhibit lower efficiency or substantial volatility over the period.
- United States
- The United States consistently reports the lowest asset turnover among all analyzed regions. After maintaining a ratio of 0.49 through 2017, a sharp decline to 0.22 occurred in 2018. A gradual recovery trend followed, with the ratio improving to 0.30 by September 30, 2021.
- Europe, the Middle East and Africa (EMEA)
- The EMEA region shows moderate volatility. An initial ratio of 0.81 in 2016 decreased to 0.58 by 2018, before recovering steadily to reach 0.79 in 2021, nearly returning to its 2016 efficiency level.
- Greater Asia
- Greater Asia demonstrates the highest levels of asset efficiency. Despite reaching a peak ratio of 3.02 in 2017, a downward trend was observed over subsequent years, reaching a low of 1.69 in 2020. A rebound occurred in 2021, bringing the ratio back to 1.97.
- Other Regions
- The "Other" category experienced an initial increase from 1.76 in 2016 to a peak of 2.26 in 2018. This was followed by a significant drop to 1.21 in 2019, with a subsequent modest improvement to 1.46 by 2021.
Overall, Greater Asia remains the most efficient region in terms of revenue generation per unit of asset, whereas the United States demonstrates the lowest relative efficiency. A general pattern of volatility is evident across all regions between 2018 and 2020, followed by a universal trend of recovery in the final year of the analysis.
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Area Asset Turnover: United States
Becton, Dickinson & Co.; United States; area asset turnover calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 10,969) | 9,716) | 9,730) | 8,768) | 6,504) | 6,893) |
| Long-lived assets | 36,037) | 36,468) | 37,053) | 38,982) | 13,151) | 14,075) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 0.30 | 0.27 | 0.26 | 0.22 | 0.49 | 0.49 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 10,969 ÷ 36,037 = 0.30
Between 2016 and 2021, the United States operations experienced a significant transformation in asset structure and revenue generation capacity. While revenues demonstrated a strong overall upward trajectory, a substantial expansion of the long-lived asset base in 2018 created a temporary decline in asset utilization efficiency, which has since been steadily recovering.
- Revenue Trends
- Revenues increased from 6,893 million US dollars in 2016 to 10,969 million US dollars by 2021. After a slight dip in 2017, there was a sharp increase in 2018, followed by sustained growth through 2021, indicating a strengthening market position in the region.
- Long-lived Asset Base
- A dramatic expansion of long-lived assets occurred in 2018, where the value surged from 13,151 million US dollars in 2017 to 38,982 million US dollars. This suggests a significant capital expenditure or acquisition event. Following this peak, the asset base experienced a gradual decline, reaching 36,037 million US dollars by 2021.
- Area Asset Turnover Performance
- The asset turnover ratio remained constant at 0.49 through 2017 but fell sharply to 0.22 in 2018, reflecting the fact that the increase in assets significantly outpaced revenue growth in that period. From 2019 to 2021, the ratio showed a consistent recovery trend, rising from 0.26 to 0.30, which indicates an improving ability to generate sales from the expanded asset base.
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Area Asset Turnover: Europe, the Middle East and Africa (EMEA)
Becton, Dickinson & Co.; Europe, the Middle East and Africa (EMEA); area asset turnover calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 4,751) | 3,928) | 3,837) | 3,298) | 2,588) | 3,049) |
| Long-lived assets | 6,004) | 5,890) | 5,519) | 5,640) | 4,421) | 3,747) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 0.79 | 0.67 | 0.70 | 0.58 | 0.59 | 0.81 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 4,751 ÷ 6,004 = 0.79
The financial performance of the Europe, Middle East, and Africa (EMEA) region is characterized by a period of initial volatility followed by a sustained recovery in both revenue generation and asset utilization efficiency. While long-lived assets expanded consistently throughout the period, the ability to generate revenue from these assets experienced a significant decline before trending upward toward historical levels.
- Revenue Trajectory
- Revenues in the EMEA region exhibited a non-linear growth pattern. Following a contraction in 2017, where revenues fell to 2,588 million USD, a consistent upward trend was established. This growth accelerated significantly by September 30, 2021, reaching 4,751 million USD, representing a substantial increase from the 2017 low.
- Long-Lived Asset Expansion
- There was a steady and aggressive increase in the long-lived asset base. Assets grew from 3,747 million USD in 2016 to 6,004 million USD by 2021. This indicates a strategic commitment to capital investment within the region, with the most significant jump occurring between 2017 and 2018.
- Area Asset Turnover Analysis
- The asset turnover ratio, which measures the efficiency of asset usage, underwent a U-shaped trajectory. The ratio dropped sharply from 0.81 in 2016 to a low of 0.58 in 2018, driven by the simultaneous decrease in revenue and rapid accumulation of long-lived assets. However, a recovery phase began in 2019, with the ratio improving to 0.79 by 2021. This recovery suggests that the revenue gains in the later years have begun to effectively offset the expanded asset base, nearly returning the region to its 2016 efficiency levels.
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Area Asset Turnover: Greater Asia
Becton, Dickinson & Co.; Greater Asia; area asset turnover calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 3,272) | 2,568) | 2,726) | 2,460) | 1,744) | 1,692) |
| Long-lived assets | 1,662) | 1,521) | 1,328) | 851) | 578) | 586) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 1.97 | 1.69 | 2.05 | 2.89 | 3.02 | 2.89 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 3,272 ÷ 1,662 = 1.97
The financial performance of the Greater Asia region is characterized by substantial growth in both top-line revenue and the long-lived asset base, though this expansion has occurred at different velocities, impacting overall operational efficiency.
- Revenue Performance
- Revenues in the Greater Asia region demonstrated a consistent upward trajectory over the analyzed period, increasing from 1,692 million US$ in 2016 to 3,272 million US$ by 2021. A notable acceleration occurred between 2017 and 2018, where revenues rose by approximately 41%. Despite a marginal contraction in 2020, the region achieved its highest revenue peak in 2021.
- Long-lived Asset Expansion
- There was a significant and sustained increase in long-lived assets, which grew from 586 million US$ in 2016 to 1,662 million US$ in 2021. The most aggressive growth phase began in 2018 and continued through 2019, coinciding with a period of heavy capital investment in the region. By the end of the period, the asset base had nearly tripled compared to 2016 levels.
- Area Asset Turnover Trends
- The area asset turnover ratio exhibited a downward trend for the majority of the period, falling from a peak of 3.02 in 2017 to a low of 1.69 in 2020. This decline indicates that the growth in long-lived assets outpaced the growth in revenues, suggesting a period of diminishing efficiency in asset utilization. However, a recovery began in 2021, with the ratio rising to 1.97, indicating that revenue growth started to catch up with the expanded asset base.
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Area Asset Turnover: Other
Becton, Dickinson & Co.; Other; area asset turnover calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 1,255) | 905) | 997) | 1,457) | 1,257) | 849) |
| Long-lived assets | 860) | 753) | 824) | 645) | 584) | 483) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 1.46 | 1.20 | 1.21 | 2.26 | 2.15 | 1.76 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 1,255 ÷ 860 = 1.46
The analysis of the "Other" geographic area reveals a period of fluctuating operational efficiency between 2016 and 2021, characterized by an initial surge in asset productivity followed by a significant decline and a subsequent partial recovery.
- Revenue Trends
- Revenues exhibited a strong upward trajectory from 2016 to 2018, peaking at 1,457 million US dollars. However, a sharp contraction occurred in 2019 and 2020, with revenues falling to a low of 905 million US dollars, before rebounding to 1,255 million US dollars by September 30, 2021.
- Long-lived Asset Investment
- Long-lived assets demonstrated a consistent general upward trend over the six-year period, increasing from 483 million US dollars in 2016 to 860 million US dollars in 2021. A notable divergence occurred in 2019, where assets increased to 824 million US dollars despite a simultaneous decline in revenues, indicating a period of capital expansion that did not immediately yield proportional sales growth.
- Area Asset Turnover Efficiency
- The asset turnover ratio reached a peak of 2.26 in 2018, reflecting a period of high efficiency in utilizing assets to generate revenue. A significant deterioration in this metric was observed in 2019 and 2020, with the ratio dropping to 1.21 and 1.20, respectively. This decline was the result of the inverse movement between falling revenues and a growing asset base. By 2021, the ratio recovered to 1.46, indicating an improvement in productivity, although the efficiency level remained substantially lower than the 2017-2018 peak.
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Revenues
Becton, Dickinson & Co., revenues by geographic area
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| United States | 10,969) | 9,716) | 9,730) | 8,768) | 6,504) | 6,893) |
| Europe, the Middle East and Africa (EMEA) | 4,751) | 3,928) | 3,837) | 3,298) | 2,588) | 3,049) |
| Greater Asia | 3,272) | 2,568) | 2,726) | 2,460) | 1,744) | 1,692) |
| Other | 1,255) | 905) | 997) | 1,457) | 1,257) | 849) |
| Total | 20,247) | 17,117) | 17,290) | 15,983) | 12,093) | 12,483) |
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).
Total revenue demonstrates a consistent upward trend over the analyzed period, growing from 12,483 million USD in 2016 to 20,247 million USD in 2021. This overall increase is characterized by a period of significant acceleration between 2017 and 2019, followed by a brief stabilization in 2020 and a strong recovery in 2021.
- United States Revenue Trends
- The United States remains the largest geographic contributor to total revenue. Despite a slight decrease from 6,893 million USD in 2016 to 6,504 million USD in 2017, the region experienced a sharp increase starting in 2018. Revenue climbed to 10,969 million USD by 2021, maintaining its position as the primary driver of total corporate growth.
- Expansion in EMEA and Greater Asia
- International markets showed substantial expansion. The Europe, Middle East, and Africa (EMEA) region grew from 3,049 million USD in 2016 to 4,751 million USD in 2021, overcoming a contraction in 2017. Greater Asia exhibited a particularly strong growth trajectory, increasing from 1,692 million USD in 2016 to 3,272 million USD in 2021, nearly doubling its revenue contribution over the six-year period.
- Performance of Other Geographic Regions
- Revenues from other regions displayed higher volatility compared to the primary markets. This segment increased from 849 million USD in 2016 to a peak of 1,457 million USD in 2018, subsequently declining for two consecutive years before rebounding to 1,255 million USD in 2021.
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Long-lived assets
Becton, Dickinson & Co., long-lived assets by geographic area
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| United States | 36,037) | 36,468) | 37,053) | 38,982) | 13,151) | 14,075) |
| Europe, the Middle East and Africa (EMEA) | 6,004) | 5,890) | 5,519) | 5,640) | 4,421) | 3,747) |
| Greater Asia | 1,662) | 1,521) | 1,328) | 851) | 578) | 586) |
| Other | 860) | 753) | 824) | 645) | 584) | 483) |
| Corporate | 466) | 411) | 377) | 376) | 367) | 329) |
| Total | 45,029) | 45,043) | 45,101) | 46,494) | 19,101) | 19,220) |
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).
Total long-lived assets experienced a substantial increase between September 30, 2017, and September 30, 2018, rising from US$ 19,101 million to US$ 46,494 million. Following this significant expansion, the total asset base entered a period of stabilization, exhibiting a slight downward trend to US$ 45,029 million by September 30, 2021.
- United States Asset Concentration
- The United States constitutes the primary concentration of long-lived assets. A sharp inflection point occurred in 2018, with assets increasing from US$ 13,151 million to US$ 38,982 million, serving as the primary driver for the overall growth of the company's asset base. From 2018 through 2021, a gradual contraction was observed, with the value declining to US$ 36,037 million.
- International Market Growth
- Consistent growth is evident across international geographic segments. Long-lived assets in Europe, the Middle East and Africa (EMEA) grew steadily from US$ 3,747 million in 2016 to US$ 6,004 million in 2021. Greater Asia demonstrated the most significant proportional increase, rising from US$ 586 million in 2016 to US$ 1,662 million in 2021, representing nearly a threefold increase in the asset footprint within that region.
- Corporate and Miscellaneous Assets
- Assets categorized as Other and Corporate showed marginal but consistent upward trends over the analyzed period. Other assets increased from US$ 483 million in 2016 to US$ 860 million in 2021, while Corporate assets grew from US$ 329 million to US$ 466 million over the same timeframe.
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