Stock Analysis on Net
Stock Analysis on Net

Becton, Dickinson & Co. (NYSE:BDX)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 5, 2022.

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Becton, Dickinson & Co., long-term (investment) activity ratios

Microsoft Excel
Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Net fixed asset turnover
Net fixed asset turnover (including operating lease, right-of-use asset)
Total asset turnover
Equity turnover

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).

Net fixed asset turnover
The ratio exhibited a decline from 3.2 in 2016 to 2.61 in 2017, followed by a gradual recovery over the subsequent years, reaching 3.17 in 2021. This pattern suggests an initial decrease in efficiency in generating sales from fixed assets, with improvement resuming after 2017.
Net fixed asset turnover (including operating lease, right-of-use asset)
The adjusted ratio mirrored the same initial decline from 3.2 in 2016 to 2.61 in 2017, yet showed a less pronounced recovery, peaking at 2.96 in 2021. The inclusion of operating lease assets indicates a slightly lower turnover in recent years compared to the traditional measure, reflecting the impact of lease accounting changes on asset base and turnover calculations.
Total asset turnover
This ratio declined sharply from 0.49 in 2016 to 0.3 in 2018 and then stabilized around the 0.32-0.33 range through 2020, before improving modestly to 0.38 in 2021. The initial drop signifies reduced efficiency in utilizing total assets to generate sales, with some recovery in the most recent period.
Equity turnover
The equity turnover ratio shows a downward trend from 1.64 in 2016 to 0.72 in 2020, indicating a decreasing ability to generate revenue from shareholders' equity during this period. A slight improvement to 0.86 in 2021 suggests a tentative enhancement in equity utilization efficiency.
Overall analysis
The data reveals that while asset utilization ratios declined notably in the earlier years, there are signs of gradual recovery in the later years, especially in net fixed asset turnover and total asset turnover. The equity turnover ratio, although significantly decreased over the period, also shows a mild rebound in the final year. The impact of operating lease capitalization is evident in the adjusted net fixed asset turnover, reflecting evolving accounting standards and their effect on asset efficiency metrics.

Net Fixed Asset Turnover

Becton, Dickinson & Co., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Property, plant and equipment, net
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Net Fixed Asset Turnover, Sector
Health Care Equipment & Services
Net Fixed Asset Turnover, Industry
Health Care

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
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =

2 Click competitor name to see calculations.

Revenues
The revenues exhibited an overall upward trend over the analyzed period, increasing from $12,483 million in 2016 to $20,248 million in 2021. Notably, revenues experienced a decline in 2017, dropping to $12,093 million from the previous year, but then rebounded significantly with substantial growth in 2018 and 2019. After a slight decrease in 2020, likely impacted by external factors, revenues recovered and reached the highest level in 2021.
Property, plant and equipment, net
Net property, plant, and equipment demonstrated consistent growth throughout the period, rising steadily from $3,901 million in 2016 to $6,393 million in 2021. This trend indicates ongoing investment in fixed assets, with annual increases reflecting a commitment to expanding or upgrading operational capacity.
Net fixed asset turnover
The net fixed asset turnover ratio fluctuated over the years. Starting at 3.2 in 2016, it declined to 2.61 in 2017, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue. Subsequently, the ratio showed a recovery trend, increasing to 2.97 in 2018 and reaching 3.06 in 2019. Although it dropped slightly to 2.89 in 2020, it ultimately improved to 3.17 in 2021, surpassing the initial value. This indicates enhanced efficiency in generating revenue from fixed assets by the end of the period despite some intermediate volatility.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Becton, Dickinson & Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
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
 
Property, plant and equipment, net
Operating lease right-of-use assets (recorded in Other assets)
Property, plant and equipment, net (including operating lease, right-of-use asset)
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Health Care Equipment & Services
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Health Care

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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =

2 Click competitor name to see calculations.

Revenue Trends
Revenues demonstrated a fluctuating upward trend over the analyzed period. Initially, there was a slight decline from 12,483 million US dollars in 2016 to 12,093 million US dollars in 2017. Subsequently, revenues increased substantially to 15,983 million US dollars in 2018 and continued to rise to 17,290 million US dollars in 2019. A modest dip occurred in 2020, with revenues decreasing to 17,117 million US dollars, likely reflecting external challenges. The recovery was strong in 2021, with revenues reaching the highest level in the series at 20,248 million US dollars.
Property, Plant, and Equipment (PP&E) Trends
The net book value of property, plant, and equipment, inclusive of operating lease right-of-use assets, showed consistent growth throughout the period. Starting at 3,901 million US dollars in 2016, this figure rose steadily to 4,638 million US dollars in 2017, 5,375 million US dollars in 2018, and further to 5,659 million US dollars in 2019. The upward trend intensified in the last two years, with PP&E values reaching 6,341 million US dollars in 2020 and 6,839 million US dollars in 2021. This progression indicates ongoing investment in fixed assets and capital expansion.
Net Fixed Asset Turnover Ratio Analysis
The net fixed asset turnover ratio, which measures how efficiently the company generates revenue from its fixed assets, exhibited variability over the six-year span. The ratio started at 3.2 in 2016, indicating strong efficiency, but declined considerably to 2.61 in 2017. It then improved to 2.97 in 2018 and 3.06 in 2019, reflecting enhanced asset utilization. A subsequent decrease to 2.7 in 2020 corresponded with the drop in revenues, potentially signaling reduced operational efficiency or underutilization of assets. In 2021, the ratio increased again to 2.96, suggesting a rebound in asset efficiency alongside revenue growth.
Summary of Observations
The data indicate that while revenue growth has generally been positive with some fluctuations, the company has consistently increased its investment in property, plant, and equipment. The net fixed asset turnover ratio mirrors revenue fluctuations, illustrating a close relationship between asset utilization and sales performance. The temporary decline in 2020 is notable and aligns with broader economic disruptions. The recovery in both revenue and asset efficiency in 2021 signals resumed operational effectiveness and growth momentum.

Total Asset Turnover

Becton, Dickinson & Co., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Total Asset Turnover, Sector
Health Care Equipment & Services
Total Asset Turnover, Industry
Health Care

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
Total asset turnover = Revenues ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Revenues
Revenues exhibited variability over the six-year period. Initially, a slight decline was observed from 12,483 million in 2016 to 12,093 million in 2017. Following this, revenues increased significantly, reaching a peak of 20,248 million in 2021. Notably, the most substantial growth occurred between 2017 and 2018, and again from 2020 to 2021, indicating periods of strong revenue expansion.
Total assets
Total assets demonstrated a steady upward trend from 25,586 million in 2016 to 53,866 million in 2021. This more than doubling of asset base suggests considerable investment or acquisition activity over the period. While there was a slight dip between 2018 and 2019, the overall trend was positive, indicating asset growth consistent with the company’s expansion.
Total asset turnover
The total asset turnover ratio decreased from 0.49 in 2016 to a low of 0.30 in 2018, indicating less efficient use of assets to generate revenues during this period. From 2018 onwards, the ratio stabilized somewhat, fluctuating between 0.30 and 0.38, but remained below the initial 2016 level. This suggests that although assets grew significantly, the pace of revenue generation relative to asset base did not fully recover to earlier efficiency levels by 2021.
Overall Insights
The data reflects a company undergoing considerable expansion as evidenced by increasing revenues and sizable growth in total assets. However, the decline and subsequent stabilization in total asset turnover implies that asset utilization efficiency has diminished compared to earlier years. Expanding assets at a faster rate than revenues may be due to strategic investments or acquisition efforts that have not yet fully translated into proportional revenue increases.

Equity Turnover

Becton, Dickinson & Co., equity turnover calculation, comparison to benchmarks

Microsoft Excel
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
Shareholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Equity Turnover, Sector
Health Care Equipment & Services
Equity Turnover, Industry
Health Care

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
Equity turnover = Revenues ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Revenues
The revenues exhibited a fluctuating but generally upward trend over the analyzed period. Beginning at approximately $12.5 billion in 2016, revenues decreased slightly in 2017 to about $12.1 billion. However, from 2017 onwards, there was a consistent increase, peaking at over $20 billion by 2021. This represents a substantial growth of nearly 67% from 2017 to 2021, indicating robust sales expansion.
Shareholders' Equity
Shareholders' equity showed a strong positive trend, nearly tripling from approximately $7.6 billion in 2016 to around $23.7 billion by 2021. Notably, there was a significant jump between 2016 and 2017, more than doubling the equity from about $7.6 billion to nearly $13 billion. Subsequent years showed steady growth, though the increase slowed between 2020 and 2021 where the equity value slightly decreased by a small margin, suggesting a possible stabilization phase.
Equity Turnover
The equity turnover ratio, which measures the efficiency in generating revenue from shareholders' equity, declined markedly from 2016 to 2020. It started at 1.64 in 2016, dropping sharply to 0.93 in 2017 and further to a low of 0.72 in 2020. This decline suggests that while the company's equity base was expanding rapidly, its ability to generate revenues per unit of equity decreased. In 2021, the ratio increased slightly to 0.86, indicating a modest improvement in asset utilization relative to equity but still significantly below the 2016 level.
Summary Insights
Overall, the data reveal a company experiencing strong growth in both revenues and shareholders' equity over the six-year period. The significant increase in equity outpaced revenue growth, reflected in the declining equity turnover ratio until 2020, which may imply an increasingly capital-intensive business or accumulation of equity without proportionate revenue gains. The slight rebound in the equity turnover ratio in the final year suggests a potential improvement in capital efficiency. These trends highlight the importance of monitoring how effectively the company leverages its equity to support revenue generation going forward.