Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Becton, Dickinson & Co., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Becton, Dickinson & Co.’s gross profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Becton, Dickinson & Co.’s operating profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Becton, Dickinson & Co.’s net profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Becton, Dickinson & Co.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
ROA	A profitability ratio calculated as net income divided by total assets.	Becton, Dickinson & Co.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

Becton, Dickinson & Co., gross profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Gross profit
	Revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Becton, Dickinson & Co.’s gross profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Becton, Dickinson & Co., operating profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Operating income
	Revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	Operating Profit Margin, Sector
	Health Care Equipment & Services
	Operating Profit Margin, Industry
	Health Care

2018 Calculations

¹ Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Becton, Dickinson & Co.’s operating profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Becton, Dickinson & Co., net profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Net income
	Revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	Net Profit Margin, Sector
	Health Care Equipment & Services
	Net Profit Margin, Industry
	Health Care

2018 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Becton, Dickinson & Co.’s net profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Becton, Dickinson & Co., ROE calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Net income
	Shareholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	ROE, Sector
	Health Care Equipment & Services
	ROE, Industry
	Health Care

2018 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Becton, Dickinson & Co.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

Becton, Dickinson & Co., ROA calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Net income
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	ROA, Sector
	Health Care Equipment & Services
	ROA, Industry
	Health Care

2018 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Becton, Dickinson & Co.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

	Becton, Dickinson & Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Becton, Dickinson & Co. (BDX)

Profitability Analysis