Becton, Dickinson & Co. (NYSE:BDX)

Gross Profit Margin

The gross profit margin demonstrated relative stability from the end of 2015 through the first quarter of 2022. Beginning in December 2015 with figures around 48%, it experienced a slight decline through 2017, reaching a low approximately 45% in mid-2018. Subsequently, there was a modest uptrend in 2019, peaking just below 48%, followed by a gradual decrease into early 2021. The margin stabilized near 46% towards the first quarter of 2022. Overall, the margin fluctuated within a narrow band around mid-40%, indicating a consistent gross profit relative to sales during this period.

Operating Profit Margin

The operating profit margin exhibited notable variability throughout the period. Starting with around 11.5% at the end of 2015, the margin surged to above 15% in early 2016, followed by a sharp drop to below 10% by the end of 2016. After stabilizing around 7-9% in the 2017-2018 timeframe, it showed a recovery trend peaking close to 13% in late 2018 and again in 2021. Despite fluctuations, the margin remained generally between 7% and 13%, indicating intermittent changes in operating efficiency or cost management, with evidence of cyclical improvements.

Net Profit Margin

The net profit margin displayed a pattern of volatility with several peaks and troughs. Starting around 7.8% in late 2015, it increased above 10% in early 2016, but subsequently declined sharply to near zero or even negative territory around 2017. Following this, it fluctuated between roughly 2% and 7% up until 2020. From 2020 to early 2022, there was an observable upward trend, with the margin reaching above 10% at points in 2021 and stabilizing near 9.5% by the first quarter of 2022. This suggests periods of reduced profitability were followed by recovery phases, possibly impacted by operational challenges or external factors.

Return on Equity (ROE)

ROE showed significant fluctuations during the observed timeframe. It started at approximately 12.8% at the end of 2015, peaked above 17% in early 2016, and then sharply declined to below 7% in late 2016 and through 2017. ROE remained subdued near or below 5% through much of 2018 and 2019, followed by a slight recovery in 2020, rising towards 8% by the end of 2021. This trend indicates varying efficiency in generating shareholder returns, with recoveries following periods of lower performance.

Return on Assets (ROA)

ROA mirrored the general trend of ROE but at lower absolute values, indicating consistent asset utilization levels. Beginning near 3.8% in late 2015, ROA rose to 5.4% in early 2016, then dropped sharply to near or below 2% through 2017. The ratio remained relatively low, fluctuating between 1.5% and 3.5% from 2018 to early 2022, with a gradual upward trend after 2020. This suggests variable efficiency in asset utilization over the period, with some improvement in recent quarters.

The financial data displays notable variations and trends in gross profit, revenues, and gross profit margin over the analyzed periods.

Gross Profit

Gross profit figures generally show an increasing trend between 2015 and 2017, peaking multiple times, such as in March 2018 and September 2019. There is a marked peak in March 2021 at 2,732 million US dollars, followed by fluctuations but maintaining a relatively high level through March 2022. However, some periods, notably from late 2019 to mid-2020, reflect declines or volatility, which could indicate challenges faced during that interval.

Revenues

Revenues exhibit growth overall, with a clear rise from under 3,000 million US dollars at the end of 2015 to above 5,000 million by early 2021. There is a significant jump in revenue starting around March 2018, indicating a substantial increase that is sustained with minor fluctuations. Post-2020, revenues stabilize at elevated levels around 5,000 million US dollars, suggesting strengthened income generation capacity.

Gross Profit Margin

The gross profit margin percentages indicate considerable stability in profitability relative to revenues. Initially, margins hovered just below 50% around late 2016 but experienced a gradual decline to about mid-40% levels by late 2020. A slight recovery is seen thereafter with margins approaching 46% by early 2022. This suggests some pressures on cost control or pricing strategies, yet overall margins remain robust.

In summary, the data reveals a firm with growing revenues and gross profit over the years, albeit with some periodical setbacks and margin contractions. The resilience in gross profit margins despite revenue growth suggests effective management of production or operational costs, although ongoing attention may be required to sustain profitability ratios amid competitive or market pressures.

Revenues

Revenues generally exhibited an upward trend over the analyzed periods, starting at approximately 2,986 million USD in late 2015 and reaching around 5,011 million USD by the first quarter of 2022. Notably, there were significant jumps in revenues during the period from late 2017 to early 2018, where values rose from about 3,080 million USD to over 4,222 million USD, representing a marked increase. While fluctuations were observed in some quarters, especially mild decreases in the mid-2020 period, the overall trajectory remained positive, with the highest revenue recorded at approximately 5,315 million USD in the second quarter of 2021.

Operating Income (Loss)

Operating income showed considerable volatility throughout the period. Initial quarters indicated moderate profitability with operating income ranging between roughly 230 million and 811 million USD. However, the third quarter of 2016 experienced a sharp downturn, recording a loss of 223 million USD. Subsequent quarters saw a recovery and stabilization with positive income values, though with variations. A pronounced peak appeared in the first quarter of 2021, with operating income surpassing 1,200 million USD, the highest recorded in this span. Post-peak, the operating income experienced declines but remained positive toward early 2022.

Operating Profit Margin

The operating profit margin data, available from mid-2016 onwards, indicates fluctuating profitability efficiency as a percentage of revenues. The margin was generally in the range of 7% to 15%, with some lows around 4.69% and highs near 15.21%. Early margins (mid-2016) showed values above 11%, with occasional dips, such as in late 2017 where margins dropped to around 4.69%. From 2018 forward, the margin trend stabilized somewhat within a band of approximately 8% to 13%, suggesting maintained operational efficiency despite revenue variations. The final recorded margin in early 2022 was about 12.93%, indicating a relatively strong operating profit level relative to sales.

Overall Insights

The financial data reveals a company that experienced growth in sales over the analyzed periods, supported by fluctuating but generally positive operating income and stable operating margins. The sharp loss in the third quarter of 2016 represents an exceptional event that was subsequently mitigated. Later years show increased revenue and operating income peaks, particularly in early 2021, suggesting periods of enhanced profitability or operational improvements. Margins remained within a moderate range, supporting the inference of steady operational control despite inherent variability in income and revenue peaks and troughs.

The analysis of the quarterly financial data reveals several trends in the key financial metrics over the observed periods.

Net Income (Loss)

Net income exhibits considerable volatility throughout the quarters. Initial values in late 2015 and early 2016 show positive net income ranging from 229 to 390 million USD. However, a sharp decline occurs in the third quarter of 2016 with a dip to 19 million USD, followed by a recovery to 562 million USD at year-end. In 2017, net income fluctuates, including a notable negative figure of -132 million USD in the second quarter and other negative quarters such as the fourth quarter. The pattern of volatility continues into 2018, with several quarters reflected as negative or near zero. Starting from early 2019, net income progressively recovers, becoming consistently positive with increasing values reaching a peak of 1003 million USD in the first quarter of 2021. The latter quarters show slightly lower but still robust net income figures, maintaining generally positive trends into early 2022.

Revenues

Revenue demonstrates a gradually increasing trend over the period, with some fluctuations. Starting near 2986 million USD at the end of 2015, revenues slowly rise through 2016 and 2017, with figures mostly hovering between 2900 and 3200 million USD initially, later increasing to over 4200 million USD by early 2018. Throughout 2019 and 2020, revenues generally increase further, with some quarters surpassing the 5000 million USD mark, indicating expanding sales or operations. There are minor dips observed, such as the third quarter of 2020 falling to 3855 million USD, but revenues quickly rebound afterward, remaining above 4900 million USD towards early 2022. This overall upward trend suggests growth in the company’s sales volume or price levels.

Net Profit Margin

The net profit margin shows notable fluctuations but an overall upward trend in recent periods after initial variability. Data begins mid-2016, with margins ranging between 3.28% and 10.67%, indicating varying profitability efficiency per unit of revenue. Despite intermittent decreases, there is a clear recovery and improvement through 2019 and beyond, with margins rising to above 8% and reaching a peak of 10.33% in late 2021. Margins remain strong into early 2022, predominantly sustaining levels near or above 8%. This suggests enhanced cost management, improved pricing, or favorable operational performance contributing to stronger profitability relative to revenue.

Overall, the company demonstrates resilience in net income despite volatility, consistent revenue growth, and improving profitability margins over the observed quarters. The volatility in net income in earlier periods contrasts with more stable and growing profitability in the later years, indicating potentially successful strategic or operational adjustments. Revenue expansion coupled with rising net profit margins points to effective scaling and profitability enhancement.

The analysis of the quarterly financial data reveals notable fluctuations in net income alongside a relatively stable shareholder equity base over the observed periods. The return on equity (ROE) metric exhibits varied performance trends, reflecting the interplay between net income volatility and equity levels.

Net Income Trends

Net income demonstrates significant volatility throughout the timeframe with multiple periods reporting substantial losses interspersed with gains. Early quarters show increasing net income peaking at $562 million in December 2015, followed by a marked decline and multiple quarters in which net income turns negative, including values such as -$132 million in June 2017 and -$136 million in December 2017. From 2018 onwards, net income shows periodic recovery and decline but generally moves towards positive territory, culminating in a strong surge to over $1 billion in March 2021. This suggests variability in operational outcomes possibly due to market conditions or extraordinary items affecting profitability.

Shareholders' Equity

Shareholders’ equity presents a generally upward trend over the period, starting at approximately $7.2 billion at the end of 2015 and increasing to around $24.5 billion by March 2022. Despite minor fluctuations, equity demonstrates overall growth, which could be attributed to retained earnings, capital raises, or asset revaluation. The rise in equity appears gradual and steady without abrupt changes, indicating stable capitalization practices.

Return on Equity (ROE)

The ROE percentages fluctuate significantly over the quarters, with early data points missing but available values showing a peak of 17.26% in March 2016. Subsequent quarters reflect a decline, with values falling below 2% at times, such as 1.89% in December 2016 and 0.22% in March 2017. The metric rebounds modestly in later periods, maintaining a range generally between 3% and 8%, with some improvement noted in the latest reported quarters. These ROE variations correspond to the changes in net income against a relatively stable equity base, indicating periods of high profitability interspersed with modest returns and challenges.

In summary, the financial data portrays a scenario where net income experiences substantial fluctuations impacting overall profitability ratios, while shareholders' equity steadily grows, suggesting solid capitalization. The ROE reflects these dynamics, showing considerable variation indicative of the underlying earnings volatility. Continued monitoring of income stability and equity management will be important for evaluating ongoing financial health.

The financial data over the periods analyzed reveals fluctuations and general trends in net income, total assets, and return on assets (ROA).

Net Income (Loss)

Net income experienced significant volatility throughout the periods. Initial figures showed positive income, peaking at 562 million in December 2015, followed by intermittent negative figures such as -132 million in June 2017 and -136 million in December 2017. After this period of variability, net income demonstrated a positive and generally upward trajectory, reaching a notable high of 1,003 million in March 2021, before stabilizing at slightly lower but still elevated levels through March 2022.

Total Assets

Total assets showed a pattern of growth with some fluctuations. Starting from 26,046 million in December 2015, assets remained relatively steady initially but surged significantly to 55,363 million by December 2017. Following this peak, asset values slightly declined but maintained a range around 53,000 to 55,000 million through the subsequent periods. This indicates a phase of expansion in asset base primarily occurring between 2016 and 2017, followed by consolidation.

Return on Assets (ROA)

ROA, reported from June 2016 onward, reflects profitability relative to asset size and shows a range from 0.08% to 5.45%. After a peak of 5.45% in June 2016, ROA declined sharply to a low of 0.08% in December 2017. From 2018 onward, ROA demonstrates a recovery trend, generally rising and stabilizing between approximately 2.0% and 3.9%. This recovery aligns with the improved net income figures observed in later periods, suggesting better utilization of assets to generate earnings.

Overall, the financial data indicates a period of instability and volatility in earnings up to late 2017, followed by improved profitability and more consistent asset levels. The notable increase in total assets around 2017 might have contributed to the recovery in profitability metrics in subsequent years. The steady ROA improvement reflects effective management of assets to enhance returns after earlier challenges.