Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Becton, Dickinson & Co., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Becton, Dickinson & Co. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Becton, Dickinson & Co. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Becton, Dickinson & Co. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Becton, Dickinson & Co. working capital turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Becton, Dickinson & Co. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Becton, Dickinson & Co. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Becton, Dickinson & Co. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Becton, Dickinson & Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Becton, Dickinson & Co., inventory turnover calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold | 10,821) | 9,540) | 9,002) | 8,721) | 6,151) | 6,492) | |
| Inventories | 2,866) | 2,743) | 2,579) | 2,451) | 1,818) | 1,719) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 3.78 | 3.48 | 3.49 | 3.56 | 3.38 | 3.78 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Abbott Laboratories | 3.59 | 2.99 | 3.07 | — | — | — | |
| Cigna Group | 31.58 | 32.70 | 36.70 | — | — | — | |
| CVS Health Corp. | 13.52 | 11.88 | 12.06 | — | — | — | |
| Intuitive Surgical Inc. | 2.98 | 2.49 | 2.30 | — | — | — | |
| Medtronic PLC | 2.43 | 2.23 | 2.44 | 2.53 | — | — | |
| Shockwave Medical Inc. | 0.96 | 0.70 | 1.42 | — | — | — | |
| Inventory Turnover, Sector | |||||||
| Health Care Equipment & Services | 23.66 | 20.87 | 21.65 | — | — | — | |
| Inventory Turnover, Industry | |||||||
| Health Care | 10.84 | 9.79 | 9.91 | — | — | — | |
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
Inventory turnover = Cost of products sold ÷ Inventories
= 10,821 ÷ 2,866 = 3.78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Becton, Dickinson & Co. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Becton, Dickinson & Co., receivables turnover calculation, comparison to benchmarks
| 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 | 20,248) | 17,117) | 17,290) | 15,983) | 12,093) | 12,483) | |
| Trade receivables, net | 2,497) | 2,398) | 2,345) | 2,319) | 1,744) | 1,618) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 8.11 | 7.14 | 7.37 | 6.89 | 6.93 | 7.72 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 6.64 | 5.40 | 5.88 | — | — | — | |
| Cigna Group | 19.35 | 19.47 | 20.05 | — | — | — | |
| CVS Health Corp. | 11.91 | 12.32 | 13.04 | — | — | — | |
| Elevance Health Inc. | 20.66 | 19.72 | 18.20 | — | — | — | |
| Humana Inc. | 45.69 | 66.78 | 60.97 | — | — | — | |
| Intuitive Surgical Inc. | 7.30 | 6.75 | 6.94 | — | — | — | |
| Medtronic PLC | 5.51 | 6.22 | 4.91 | 5.00 | — | — | |
| Shockwave Medical Inc. | 6.33 | 5.80 | 5.82 | — | — | — | |
| UnitedHealth Group Inc. | 20.07 | 19.86 | 20.32 | — | — | — | |
| Receivables Turnover, Sector | |||||||
| Health Care Equipment & Services | 14.99 | 15.09 | 14.96 | — | — | — | |
| Receivables Turnover, Industry | |||||||
| Health Care | 9.51 | 9.57 | 9.86 | — | — | — | |
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
Receivables turnover = Revenues ÷ Trade receivables, net
= 20,248 ÷ 2,497 = 8.11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Becton, Dickinson & Co. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
Becton, Dickinson & Co., payables turnover calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold | 10,821) | 9,540) | 9,002) | 8,721) | 6,151) | 6,492) | |
| Accounts payable | 1,793) | 1,355) | 1,092) | 1,106) | 797) | 665) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 6.04 | 7.04 | 8.24 | 7.89 | 7.72 | 9.76 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 4.21 | 3.80 | 4.07 | — | — | — | |
| Cigna Group | 7.68 | 7.75 | 9.34 | — | — | — | |
| CVS Health Corp. | 19.14 | 19.72 | 20.13 | — | — | — | |
| Elevance Health Inc. | 7.59 | 7.75 | 9.25 | — | — | — | |
| Humana Inc. | 8.35 | 7.57 | 8.97 | — | — | — | |
| Intuitive Surgical Inc. | 14.45 | 18.35 | 11.08 | — | — | — | |
| Medtronic PLC | 4.98 | 4.72 | 4.69 | 5.56 | — | — | |
| Shockwave Medical Inc. | 11.77 | 14.32 | 6.15 | — | — | — | |
| UnitedHealth Group Inc. | 7.63 | 7.29 | 7.21 | — | — | — | |
| Payables Turnover, Sector | |||||||
| Health Care Equipment & Services | 9.25 | 9.16 | 9.95 | — | — | — | |
| Payables Turnover, Industry | |||||||
| Health Care | 7.67 | 7.51 | 8.04 | — | — | — | |
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
Payables turnover = Cost of products sold ÷ Accounts payable
= 10,821 ÷ 1,793 = 6.04
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Becton, Dickinson & Co. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Becton, Dickinson & Co., working capital turnover calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 8,838) | 8,969) | 6,664) | 7,411) | 18,633) | 6,367) | |
| Less: Current liabilities | 6,626) | 5,836) | 5,655) | 7,216) | 3,342) | 4,400) | |
| Working capital | 2,212) | 3,133) | 1,009) | 195) | 15,291) | 1,967) | |
| Revenues | 20,248) | 17,117) | 17,290) | 15,983) | 12,093) | 12,483) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 9.15 | 5.46 | 17.14 | 81.96 | 0.79 | 6.35 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Abbott Laboratories | 3.87 | 4.06 | 6.64 | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | 7.23 | 6.39 | 6.11 | — | — | — | |
| Humana Inc. | 8.67 | 7.42 | 7.19 | — | — | — | |
| Intuitive Surgical Inc. | 1.22 | 0.77 | 1.23 | — | — | — | |
| Medtronic PLC | 2.15 | 2.48 | 2.26 | 2.32 | — | — | |
| Shockwave Medical Inc. | 1.01 | 0.31 | 0.22 | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Health Care Equipment & Services | 40.49 | 43.85 | 58.67 | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Health Care | 13.83 | 13.69 | 8.99 | — | — | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 20,248 ÷ 2,212 = 9.15
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Becton, Dickinson & Co. working capital turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Average Inventory Processing Period
Becton, Dickinson & Co., average inventory processing period calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 3.78 | 3.48 | 3.49 | 3.56 | 3.38 | 3.78 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 97 | 105 | 105 | 103 | 108 | 97 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Abbott Laboratories | 102 | 122 | 119 | — | — | — | |
| Cigna Group | 12 | 11 | 10 | — | — | — | |
| CVS Health Corp. | 27 | 31 | 30 | — | — | — | |
| Intuitive Surgical Inc. | 122 | 147 | 159 | — | — | — | |
| Medtronic PLC | 150 | 164 | 150 | 144 | — | — | |
| Shockwave Medical Inc. | 379 | 519 | 257 | — | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Health Care Equipment & Services | 15 | 17 | 17 | — | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Health Care | 34 | 37 | 37 | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.78 = 97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Becton, Dickinson & Co., average receivable collection period calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 8.11 | 7.14 | 7.37 | 6.89 | 6.93 | 7.72 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 45 | 51 | 50 | 53 | 53 | 47 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Abbott Laboratories | 55 | 68 | 62 | — | — | — | |
| Cigna Group | 19 | 19 | 18 | — | — | — | |
| CVS Health Corp. | 31 | 30 | 28 | — | — | — | |
| Elevance Health Inc. | 18 | 19 | 20 | — | — | — | |
| Humana Inc. | 8 | 5 | 6 | — | — | — | |
| Intuitive Surgical Inc. | 50 | 54 | 53 | — | — | — | |
| Medtronic PLC | 66 | 59 | 74 | 73 | — | — | |
| Shockwave Medical Inc. | 58 | 63 | 63 | — | — | — | |
| UnitedHealth Group Inc. | 18 | 18 | 18 | — | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Health Care Equipment & Services | 24 | 24 | 24 | — | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Health Care | 38 | 38 | 37 | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.11 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Becton, Dickinson & Co. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Cycle
Becton, Dickinson & Co., operating cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 97 | 105 | 105 | 103 | 108 | 97 | |
| Average receivable collection period | 45 | 51 | 50 | 53 | 53 | 47 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 142 | 156 | 155 | 156 | 161 | 144 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Abbott Laboratories | 157 | 190 | 181 | — | — | — | |
| Cigna Group | 31 | 30 | 28 | — | — | — | |
| CVS Health Corp. | 58 | 61 | 58 | — | — | — | |
| Intuitive Surgical Inc. | 172 | 201 | 212 | — | — | — | |
| Medtronic PLC | 216 | 223 | 224 | 217 | — | — | |
| Shockwave Medical Inc. | 437 | 582 | 320 | — | — | — | |
| Operating Cycle, Sector | |||||||
| Health Care Equipment & Services | 39 | 41 | 41 | — | — | — | |
| Operating Cycle, Industry | |||||||
| Health Care | 72 | 75 | 74 | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 97 + 45 = 142
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Becton, Dickinson & Co. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
Becton, Dickinson & Co., average payables payment period calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 6.04 | 7.04 | 8.24 | 7.89 | 7.72 | 9.76 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 60 | 52 | 44 | 46 | 47 | 37 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Abbott Laboratories | 87 | 96 | 90 | — | — | — | |
| Cigna Group | 48 | 47 | 39 | — | — | — | |
| CVS Health Corp. | 19 | 19 | 18 | — | — | — | |
| Elevance Health Inc. | 48 | 47 | 39 | — | — | — | |
| Humana Inc. | 44 | 48 | 41 | — | — | — | |
| Intuitive Surgical Inc. | 25 | 20 | 33 | — | — | — | |
| Medtronic PLC | 73 | 77 | 78 | 66 | — | — | |
| Shockwave Medical Inc. | 31 | 25 | 59 | — | — | — | |
| UnitedHealth Group Inc. | 48 | 50 | 51 | — | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Health Care Equipment & Services | 39 | 40 | 37 | — | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Health Care | 48 | 49 | 45 | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.04 = 60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Becton, Dickinson & Co. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Becton, Dickinson & Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 97 | 105 | 105 | 103 | 108 | 97 | |
| Average receivable collection period | 45 | 51 | 50 | 53 | 53 | 47 | |
| Average payables payment period | 60 | 52 | 44 | 46 | 47 | 37 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 82 | 104 | 111 | 110 | 114 | 107 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Abbott Laboratories | 70 | 94 | 91 | — | — | — | |
| Cigna Group | -17 | -17 | -11 | — | — | — | |
| CVS Health Corp. | 39 | 42 | 40 | — | — | — | |
| Intuitive Surgical Inc. | 147 | 181 | 179 | — | — | — | |
| Medtronic PLC | 143 | 146 | 146 | 151 | — | — | |
| Shockwave Medical Inc. | 406 | 557 | 261 | — | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Health Care Equipment & Services | 0 | 1 | 4 | — | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Health Care | 24 | 26 | 29 | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 97 + 45 – 60 = 82
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Becton, Dickinson & Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |