Analysis of Reportable Segments
Becton, Dickinson & Co. operates in 3 segments: BD Medical; BD Life Sciences; and BD Interventional.
Segment Profit Margin
Becton, Dickinson & Co., profit margin by reportable segment
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 27.25% | 26.20% | 31.16% | 30.45% | 25.70% | 22.69% |
| BD Life Sciences | 36.62% | 30.05% | 29.02% | 27.88% | 19.36% | 20.71% |
| BD Interventional | 22.01% | 19.25% | 23.00% | 10.08% | 36.20% | 35.56% |
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).
The analysis of the annual reportable segment profit margin data indicates distinct trends across the three main business segments over the period from September 30, 2016, to September 30, 2021.
- BD Medical
- The profit margin for BD Medical shows a generally positive trend with some fluctuations. Starting at 22.69% in 2016, the margin increased consistently over the next three years, reaching a peak of 31.16% in 2019. However, it subsequently declined to 26.2% in 2020 before partially recovering to 27.25% in 2021. This pattern suggests initial strong growth, followed by a decrease likely due to external or internal pressures, with a modest rebound in the most recent year.
- BD Life Sciences
- This segment displays a significant upward trend in profit margins over the period. Beginning at 20.71% in 2016, the margin dipped slightly in 2017 to 19.36%. From 2018 onwards, there is a steady and notable increase, culminating in a substantial margin of 36.62% in 2021. This sharp rise indicates improving profitability and potentially stronger operational efficiency or favorable market conditions over time.
- BD Interventional
- BD Interventional's profit margin exhibits high volatility. The margin was relatively high at 35.56% in 2016, marginally increasing to 36.2% in 2017. However, there was a dramatic drop to 10.08% in 2018. Following this, the margin partially recovered to 23% in 2019 but declined slightly to 19.25% in 2020 before increasing again to 22.01% in 2021. These fluctuations suggest instability in profitability, possibly due to market challenges, operational issues, or restructuring efforts.
Overall, BD Life Sciences shows the most consistent and strong upward profitability trend. BD Medical maintains a positive, though somewhat fluctuating, trajectory. BD Interventional demonstrates significant variability, which may warrant further investigation to understand the underlying factors impacting profitability in this segment.
Segment Profit Margin: BD Medical
Becton, Dickinson & Co.; BD Medical; segment profit margin 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) | ||||||
| Segment operating income | 2,583) | 2,274) | 2,824) | 2,624) | 1,907) | 1,807) |
| Revenues | 9,479) | 8,680) | 9,064) | 8,616) | 7,419) | 7,965) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 27.25% | 26.20% | 31.16% | 30.45% | 25.70% | 22.69% |
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
Segment profit margin = 100 × Segment operating income ÷ Revenues
= 100 × 2,583 ÷ 9,479 = 27.25%
- Revenue Trends
- Revenues showed fluctuations over the analyzed periods. Initially, there was a decline from 7,965 million USD in 2016 to 7,419 million USD in 2017. Subsequently, revenues increased steadily, reaching a peak of 9,064 million USD in 2019. There was a slight decrease in 2020 to 8,680 million USD, followed by a recovery in 2021 with revenues climbing to 9,479 million USD, the highest in the period.
- Segment Operating Income
- Segment operating income exhibited an overall upward trend with some variations. It rose from 1,807 million USD in 2016 to 1,907 million USD in 2017, then experienced significant growth to 2,624 million USD in 2018 and further to 2,824 million USD in 2019. However, in 2020, operating income declined notably to 2,274 million USD before recovering again to 2,583 million USD in 2021. The data indicates susceptibility to external or internal factors impacting profitability in 2020.
- Profit Margin Analysis
- The segment profit margin improved substantially from 22.69% in 2016 to a peak of 31.16% in 2019, reflecting enhanced operational efficiency or pricing power. This was followed by a marked decline to 26.20% in 2020, coinciding with the drop in revenues and operating income. In 2021, the margin recovered slightly to 27.25%, suggesting partial restoration of profitability.
- Overall Observations
- The data reveals a general pattern of growth in both revenues and operating income prior to 2020, along with improving profit margins. The year 2020 appears as an inflection point where declines occurred, potentially due to market disruptions or other adverse conditions. The partial rebounds in 2021 suggest resilience and a capacity to regain profitability and revenue growth. Continuous monitoring is recommended to assess whether the recovery trend persists.
Segment Profit Margin: BD Life Sciences
Becton, Dickinson & Co.; BD Life Sciences; segment profit margin 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) | ||||||
| Segment operating income | 2,391) | 1,405) | 1,248) | 1,207) | 772) | 793) |
| Revenues | 6,530) | 4,675) | 4,300) | 4,330) | 3,988) | 3,829) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 36.62% | 30.05% | 29.02% | 27.88% | 19.36% | 20.71% |
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
Segment profit margin = 100 × Segment operating income ÷ Revenues
= 100 × 2,391 ÷ 6,530 = 36.62%
The segment operating income demonstrates a generally upward trajectory over the six-year period. Starting at 793 million USD in 2016, it experienced a slight decline in 2017 to 772 million USD, followed by substantial growth in subsequent years, reaching 2391 million USD by 2021. This represents a significant increase, more than tripling over the period.
Revenues also exhibit a steady increase from 3829 million USD in 2016 to 6530 million USD in 2021. Growth is consistent annually except for a minor dip between 2018 and 2019, where revenues decreased slightly from 4330 million USD to 4300 million USD. Post-2019, revenue growth resumes at a notable pace.
The segment profit margin reflects the efficiency and profitability trend within the segment. It started at 20.71% in 2016 and dipped to 19.36% in 2017, mirroring the slight decline in operating income observed in that year. From 2018 onward, the segment profit margin increased progressively, improving from 27.88% to 36.62% by 2021. This upward trend indicates enhanced profitability, suggesting improved cost management or higher-margin products contributing to overall segment performance.
Overall, the data indicates strong financial performance in the segment with increasing revenues and a pronounced rise in operating income and profit margins, particularly notable in the later years. The improvements in profit margin imply that the segment has not only grown in size but also enhanced its operational efficiency and profitability over the analyzed period.
Segment Profit Margin: BD Interventional
Becton, Dickinson & Co.; BD Interventional; segment profit margin 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) | ||||||
| Segment operating income | 933) | 724) | 903) | 306) | 248) | 245) |
| Revenues | 4,239) | 3,762) | 3,926) | 3,037) | 685) | 689) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 22.01% | 19.25% | 23.00% | 10.08% | 36.20% | 35.56% |
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
Segment profit margin = 100 × Segment operating income ÷ Revenues
= 100 × 933 ÷ 4,239 = 22.01%
- Revenues
- The revenues displayed a substantial increase from 689 million USD in 2016 to a peak of 3926 million USD in 2019. After reaching this high point, revenues experienced a slight decline to 3762 million USD in 2020, followed by a recovery to 4239 million USD in 2021. This overall trend indicates strong growth in the segment with a minor setback in 2020.
- Segment operating income
- Operating income exhibited notable growth between 2016 and 2019, rising from 245 million USD to 903 million USD. However, there was a reduction in 2020 to 724 million USD, which then increased again to 933 million USD in 2021. This pattern suggests that despite fluctuations, operating income maintained an overall upward trajectory over the period.
- Segment profit margin
- Profit margin experienced significant variation during the years analyzed. Initially, it was high, around 35.56% in 2016 and slightly increased to 36.2% in 2017. A sharp decline occurred in 2018, dropping to 10.08%, followed by a recovery to 23% in 2019. Margins then decreased to 19.25% in 2020 before improving modestly to 22.01% in 2021. This volatility may indicate varying cost structures, pricing pressures, or changes in operational efficiency across the years.
- Overall insights
- The segment showed strong revenue growth with some fluctuations, particularly a dip in 2020 likely influenced by external factors affecting the broader market environment. Operating income trends generally followed revenues but with less pronounced fluctuations, suggesting some cost control or efficiency mechanisms. The profit margin's volatility indicates that profitability was impacted unevenly, possibly by changing expense levels or competitive conditions. The recovery in revenues and operating income in 2021 alongside margin improvement suggests a positive turnaround after the dip in 2020.
Segment Capital Expenditures to Depreciation
Becton, Dickinson & Co., capital expenditures to depreciation by reportable segment
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 0.68 | 0.43 | 0.54 | 0.54 | 0.63 | 0.58 |
| BD Life Sciences | 0.84 | 0.67 | 0.81 | 0.93 | 0.83 | 0.79 |
| BD Interventional | 0.16 | 0.16 | 0.14 | 0.10 | 0.31 | 0.32 |
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).
The analysis of segment capital expenditures to depreciation ratios over the period from September 30, 2016, to September 30, 2021, reveals varying trends across the three reportable segments.
- BD Medical
- The ratio for BD Medical began at 0.58 in 2016 and demonstrated a slight increase to 0.63 in 2017. However, it then declined to 0.54 in both 2018 and 2019, followed by a more pronounced reduction to 0.43 in 2020. In 2021, the ratio recovered significantly to 0.68. This pattern indicates a generally fluctuating capital expenditure relative to depreciation, with a notable dip in 2020 and a rebound in the subsequent year.
- BD Life Sciences
- BD Life Sciences exhibited relatively high and somewhat stable ratios, beginning at 0.79 in 2016 and rising to a peak of 0.93 in 2018. Subsequently, the ratio decreased to 0.81 in 2019 and further to 0.67 in 2020, before increasing again to 0.84 in 2021. This suggests that capital expenditures remained generally strong relative to depreciation, with a temporary decrease around 2019 and 2020, possibly reflecting changes in investment priorities or asset base adjustments during this period.
- BD Interventional
- The BD Interventional segment consistently displayed the lowest capital expenditures to depreciation ratios among the three segments. It started at 0.32 in 2016 and slightly decreased to 0.31 in 2017. From 2018 onwards, the ratio dropped markedly to 0.10 and showed minor increases to 0.14 in 2019 and 0.16 in both 2020 and 2021. This trend indicates relatively low levels of capital investment compared to the depreciation expense, suggesting limited reinvestment or possibly an aging asset base within this segment.
Segment Capital Expenditures to Depreciation: BD Medical
Becton, Dickinson & Co.; BD Medical; segment capital expenditures to depreciation 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) | ||||||
| Capital expenditures | 777) | 477) | 577) | 560) | 486) | 464) |
| Depreciation and amortization | 1,140) | 1,104) | 1,073) | 1,028) | 773) | 801) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.68 | 0.43 | 0.54 | 0.54 | 0.63 | 0.58 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 777 ÷ 1,140 = 0.68
- Capital Expenditures
- The capital expenditures demonstrated a generally increasing trend over the observed period, starting at $464 million in 2016 and rising to $777 million in 2021. After a steady increase from 2016 through 2019, reaching $577 million, there was a decline in 2020 to $477 million, which was followed by a significant increase in 2021.
- Depreciation and Amortization
- Depreciation and amortization expenses exhibited a consistent upward trend from $801 million in 2016 to $1,140 million in 2021. There was a noticeable increase between 2017 and 2018, with the figures moving from $773 million to $1,028 million, followed by smaller incremental increases each subsequent year.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation showed some variability over the years. Initially, it increased slightly from 0.58 in 2016 to 0.63 in 2017, then declined steadily to 0.43 by 2020. In 2021, the ratio sharply increased to 0.68, the highest value observed during the period.
- Overall Insights
- The data indicates a general expansion in investment activity, evidenced by the rising capital expenditures and depreciation costs, reflecting ongoing asset additions and aging of capital assets. The pronounced drop in the capital expenditures to depreciation ratio during 2019 and 2020 suggests a relative slowdown in new asset acquisition compared to asset consumption or aging during that time, with a rebound in 2021 indicating renewed investment vigor. The sharp rise in capital expenditures in 2021 coupled with the highest ratio level points to an intensified focus on capital renewal or expansion.
Segment Capital Expenditures to Depreciation: BD Life Sciences
Becton, Dickinson & Co.; BD Life Sciences; segment capital expenditures to depreciation calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 297) | 192) | 230) | 255) | 212) | 200) |
| Depreciation and amortization | 352) | 286) | 284) | 275) | 254) | 254) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.84 | 0.67 | 0.81 | 0.93 | 0.83 | 0.79 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 297 ÷ 352 = 0.84
- Capital Expenditures
- Capital expenditures showed a variable trend over the observed periods, starting at $200 million in 2016 and generally increasing with fluctuations. There was a notable rise in 2018 to $255 million, followed by a decline in 2020 to $192 million. However, in 2021, capital expenditures significantly increased again, reaching $297 million, the highest figure in the period analyzed.
- Depreciation and Amortization
- This financial metric demonstrated a gradual upward trend from 2016 through 2021. Beginning at $254 million in 2016, depreciation and amortization expenses remained steady through 2017 but rose steadily thereafter, peaking at $352 million in 2021. The increase in 2021 is particularly pronounced relative to previous years.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation fluctuated across the years. It began at 0.79 in 2016, gradually increasing to a high of 0.93 in 2018. Afterward, the ratio dropped to a low of 0.67 in 2020, indicating a period where capital expenditures were comparatively lower relative to depreciation. In 2021, the ratio increased again to 0.84, suggesting a recovery in capital investment relative to depreciation.
- Overall Analysis
- Overall, the data indicates that capital expenditures, while somewhat volatile, increased significantly by the end of the period, which may reflect strategic investment decisions or expansion. Depreciation and amortization consistently rose, potentially reflecting increased asset bases or higher amortization policies. The fluctuating ratio of capital expenditures to depreciation reveals periods of both restrained and heightened capital investment activity relative to asset depreciation.
Segment Capital Expenditures to Depreciation: BD Interventional
Becton, Dickinson & Co.; BD Interventional; segment capital expenditures to depreciation calculation
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 125) | 119) | 120) | 65) | 16) | 18) |
| Depreciation and amortization | 769) | 750) | 881) | 658) | 52) | 56) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.16 | 0.16 | 0.14 | 0.10 | 0.31 | 0.32 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 125 ÷ 769 = 0.16
- Capital Expenditures
- Capital expenditures for the segment initially decreased from 18 million USD in 2016 to 16 million USD in 2017. Subsequently, there was a substantial increase to 65 million USD in 2018, followed by a further rise to 120 million USD in 2019. The capital expenditures then stabilized at approximately 119 million USD in 2020 and increased slightly to 125 million USD in 2021.
- Depreciation and Amortization
- Depreciation and amortization expenses showed a decreasing trend from 56 million USD in 2016 to 52 million USD in 2017. However, there was a sharp increase to 658 million USD in 2018, peaking at 881 million USD in 2019. This was followed by a decline to 750 million USD in 2020 and a slight increase to 769 million USD in 2021.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio declined from 0.32 in 2016 to 0.31 in 2017 and further dropped to 0.10 in 2018, reflecting a large increase in depreciation relative to capital expenditures. The ratio then rose gradually to 0.14 in 2019 and stabilized around 0.16 in both 2020 and 2021, indicating a modest recovery and sustained moderate investment relative to asset depreciation levels.
Revenues
Becton, Dickinson & Co., revenues by reportable segment
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 9,479) | 8,680) | 9,064) | 8,616) | 7,419) | 7,965) |
| BD Life Sciences | 6,530) | 4,675) | 4,300) | 4,330) | 3,988) | 3,829) |
| BD Interventional | 4,239) | 3,762) | 3,926) | 3,037) | 685) | 689) |
| Total | 20,248) | 17,117) | 17,290) | 15,983) | 12,092) | 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).
- BD Medical Segment Revenue
- The BD Medical segment experienced fluctuating revenues over the reported periods. Starting at $7,965 million in 2016, there was a decrease to $7,419 million in 2017. Subsequently, the segment showed a recovery and growth trend, rising to $8,616 million in 2018 and peaking at $9,064 million in 2019. However, there was a slight decline during 2020 to $8,680 million, followed by a rebound to $9,479 million in 2021. Overall, from 2016 to 2021, the segment demonstrated moderate growth despite periodic declines, with a net increase of approximately 19% over the six-year span.
- BD Life Sciences Segment Revenue
- This segment displayed a consistent upward trajectory in revenues with some acceleration in later years. Beginning at $3,829 million in 2016, the revenues steadily rose to $3,988 million in 2017 and $4,330 million in 2018. Revenues slightly decreased to $4,300 million in 2019 but resumed growth to $4,675 million in 2020. The most significant growth was observed in 2021, with revenues reaching $6,530 million, marking a substantial increase compared to prior years. This indicates a strong positive momentum for the BD Life Sciences segment, particularly in the most recent year.
- BD Interventional Segment Revenue
- The BD Interventional segment presented a remarkable growth pattern during the periods analyzed. The revenue was relatively stable around the $685-$689 million range from 2016 to 2017, but a dramatic increase occurred in 2018, with revenues jumping to $3,037 million. This growth trend continued upwards to $3,926 million in 2019, followed by a minor decrease to $3,762 million in 2020, and then resumed growth in 2021 with revenues reaching $4,239 million. The segment's rapid expansion beginning in 2018 suggests either significant business development, acquisitions, or increased market penetration.
- Total Revenues
- Total company revenues reflected the movements in the reportable segments. The total revenue declined from $12,483 million in 2016 to $12,092 million in 2017, then surged significantly to $15,983 million in 2018 and continued growing to $17,290 million in 2019. A slight dip to $17,117 million was observed in 2020, followed by a strong recovery and new peak of $20,248 million in 2021. This overall trajectory is indicative of resilient growth within the company's core segments, driven largely by the substantial increases in the BD Interventional and BD Life Sciences segments.
- Summary
- The overall revenue trends indicate steady growth, particularly from 2018 onward. BD Medical, while somewhat volatile, maintained a generally increasing trend with small setbacks in 2017 and 2020. BD Life Sciences steadily advanced with marked acceleration in the latest year. BD Interventional demonstrated exceptional growth after 2017, substantially contributing to the rise in total revenues. The total revenue follows this pattern, showing strong expansion and recovery ability, peaking in 2021. These patterns suggest strategic developments and potentially successful integration efforts in the Interventional segment, as well as ongoing strengthening in Life Sciences, contributing to the company’s expanding revenue base.
Segment operating income
Becton, Dickinson & Co., segment operating income by reportable segment
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 2,583) | 2,274) | 2,824) | 2,624) | 1,907) | 1,807) |
| BD Life Sciences | 2,391) | 1,405) | 1,248) | 1,207) | 772) | 793) |
| BD Interventional | 933) | 724) | 903) | 306) | 248) | 245) |
| Total | 5,907) | 4,403) | 4,975) | 4,137) | 2,927) | 2,845) |
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).
The segment operating income data shows distinct trends across the three reportable segments over the years under review. Overall, the total operating income has increased from $2,845 million in 2016 to $5,907 million in 2021, indicating strong growth of more than double over the six-year period.
- BD Medical
- This segment experienced steady growth from 2016 to 2019, with operating income rising from $1,807 million to a peak of $2,824 million. However, in 2020, there was a noticeable decline to $2,274 million, followed by a recovery in 2021 with income reaching $2,583 million. The dip in 2020 may suggest operational challenges or market pressures during that year, but the subsequent rebound indicates a return towards prior growth levels.
- BD Life Sciences
- The BD Life Sciences segment demonstrated consistent upward momentum throughout the period, with operating income increasing from $793 million in 2016 to $2,391 million in 2021. The segment especially accelerated after 2019, nearly doubling income from $1,248 million to $2,391 million by 2021. This strong growth reflects a significant expansion in this area and appears to be a major contributor to the overall company growth.
- BD Interventional
- Starting from a relatively lower base of $245 million in 2016, the BD Interventional segment showed modest increases until 2018, when it reached $306 million. Notably, a substantial jump occurred in 2019, with income rising sharply to $903 million. After a slight decline to $724 million in 2020, the segment again rebounded to $933 million in 2021. This pattern indicates a transformative growth phase beginning in 2019, followed by some volatility but overall enhanced earnings capacity compared to earlier years.
In summary, the growth in total operating income is primarily driven by pronounced increases in the BD Life Sciences and BD Interventional segments, particularly after 2018. While BD Medical remains the largest contributor in absolute terms, its growth was interrupted in 2020 but partially recovered in 2021. The data suggest a shift in the revenue mix with increasing importance of Life Sciences and Interventional segments to the company's profitability.
Capital expenditures
Becton, Dickinson & Co., capital expenditures by reportable segment
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 777) | 477) | 577) | 560) | 486) | 464) |
| BD Life Sciences | 297) | 192) | 230) | 255) | 212) | 200) |
| BD Interventional | 125) | 119) | 120) | 65) | 16) | 18) |
| Corporate and All Other | 32) | 22) | 30) | 15) | 13) | 11) |
| Total | 1,231) | 810) | 957) | 895) | 727) | 693) |
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).
- Capital Expenditure Trends by Segment
- Over the six-year period analyzed, there has been a notable upward trend in total capital expenditures, increasing from US$693 million in 2016 to US$1,231 million in 2021. This represents an overall growth reflecting increased investment activities.
- BD Medical Segment
- The BD Medical segment consistently constitutes the largest portion of capital expenditures. Starting at US$464 million in 2016, the segment experienced a steady increase up to 2019, reaching US$577 million. A decline occurred in 2020 to US$477 million, which may relate to external factors impacting investment capabilities or strategic shifts. However, in 2021, expenditure surged significantly to US$777 million, marking the highest value in the period and suggesting renewed or expanded investment focus.
- BD Life Sciences Segment
- This segment shows moderate fluctuations. Capital expenditures rose from US$200 million in 2016 to a peak of US$255 million in 2018. Following this peak, there was a steady decline over the next two years, reaching US$192 million in 2020. A recovery is observed in 2021 with expenditures increasing to US$297 million, surpassing previous highs and indicating a possible strategic emphasis on this segment.
- BD Interventional Segment
- The BD Interventional segment demonstrates the most dynamic change, beginning with relatively low expenditures of US$18 million in 2016 and US$16 million in 2017. From 2018 onward, capital expenditures increased sharply, reaching US$120 million in 2019, remaining stable in 2020 at US$119 million, and slightly rising again to US$125 million in 2021. This pattern reflects a clear acceleration in investment, likely reflecting growth or expansion initiatives within this area.
- Corporate and All Other Segment
- Capital expenditures in the Corporate and All Other category are comparatively small but show growth over time. Starting at US$11 million in 2016, the figure increased modestly to US$15 million in 2018, with a notable jump to US$30 million in 2019. Despite a drop to US$22 million in 2020, the expenditure rebounded to US$32 million in 2021, indicating careful, though incremental, investment at the corporate level.
- Overall Insights
- The total capital expenditures reflect a growing investment trend, with a strong rebound after a dip in 2020, which is likely associated with the global economic environment during that year. The BD Medical and BD Interventional segments are the primary drivers of growth, while Life Sciences reveals a resurgence in the most recent year. The data suggests a strategic allocation of resources prioritizing segments with growth potential or innovation focus, alongside sustaining investments in existing core areas.
Depreciation and amortization
Becton, Dickinson & Co., depreciation and amortization by reportable segment
US$ in millions
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | |
|---|---|---|---|---|---|---|
| BD Medical | 1,140) | 1,104) | 1,073) | 1,028) | 773) | 801) |
| BD Life Sciences | 352) | 286) | 284) | 275) | 254) | 254) |
| BD Interventional | 769) | 750) | 881) | 658) | 52) | 56) |
| Corporate and All Other | 12) | 14) | 15) | 17) | 9) | 3) |
| Total | 2,273) | 2,154) | 2,253) | 1,978) | 1,088) | 1,114) |
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).
- Trend Analysis of Reportable Segment Depreciation and Amortization
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Over the period from 2016 to 2021, the total depreciation and amortization expenses exhibited a significant upward trajectory. The total amount increased from US$1,114 million in 2016 to US$2,273 million in 2021, indicating more than a doubling of these expenses over six years. This overall increase reflects changes within individual segments and possible shifts in asset base or capital expenditure strategies.
The BD Medical segment displayed mostly steady growth with a moderate increase in expenses. Starting at US$801 million in 2016, the segment saw some fluctuation in 2017 with a slight decline to US$773 million, followed by consistent growth through the remaining years, reaching US$1,140 million in 2021. This gradual rise suggests ongoing investment and asset utilization in this core segment.
The BD Life Sciences segment showed relatively stable depreciation and amortization expenses in the earlier years, maintaining figures around US$254 million for the first two reported years. From 2018 onwards, a slow but steady increase was observed, culminating in a significant jump to US$352 million in 2021. This increase may reflect recent capital investments or expansion efforts within this segment.
The BD Interventional segment experienced the most dramatic and volatile changes. From a low base of US$56 million in 2016 and US$52 million in 2017, the depreciation and amortization expenses surged sharply to US$658 million in 2018, further rising to US$881 million in 2019. In 2020, the expenses declined to US$750 million and remained relatively stable at US$769 million in 2021. This pattern indicates substantial asset additions or acquisitions around 2018 and 2019, followed by some reduction or stabilization in subsequent years.
Corporate and All Other expenses remained minimal and relatively stable throughout the period, fluctuating between US$3 million and US$17 million. Their minor scale compared to the main business segments implies a limited impact on the overall depreciation and amortization figures.
In summary, the total increase in depreciation and amortization is largely driven by the surge in the BD Interventional segment in the years 2018 and 2019, supplemented by steady growth in BD Medical and BD Life Sciences. The trends indicate significant capital investment and asset growth, particularly in BD Interventional, with some stabilization in later years. The data suggests a strategic emphasis on expanding asset-intensive operations, especially from 2018 forward.