Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Becton, Dickinson & Co. (NYSE:BDX)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Becton, Dickinson & Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Turnover Ratios
Inventory turnover 3.48 3.49 3.56 3.38 3.78 2.85
Receivables turnover 7.14 7.37 6.89 6.93 7.72 6.35
Payables turnover 7.04 8.24 7.89 7.72 9.76 8.85
Working capital turnover 5.46 17.14 81.96 0.79 6.35 6.20
Average No. Days
Average inventory processing period 105 105 103 108 97 128
Add: Average receivable collection period 51 50 53 53 47 57
Operating cycle 156 155 156 161 144 185
Less: Average payables payment period 52 44 46 47 37 41
Cash conversion cycle 104 111 110 114 107 144

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Becton, Dickinson & Co.’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Becton, Dickinson & Co.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Becton, Dickinson & Co.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Becton, Dickinson & Co.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
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.’s cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 9,540  9,002  8,721  6,151  6,492  5,587 
Inventories 2,743  2,579  2,451  1,818  1,719  1,959 
Short-term Activity Ratio
Inventory turnover1 3.48 3.49 3.56 3.38 3.78 2.85
Benchmarks
Inventory Turnover, Competitors2
Boston Scientific Corp. 2.56 1.97 2.41 2.41 2.54
Danaher Corp. 4.28 4.87 4.60 4.42 4.42
Edwards Lifesciences Corp. 1.35 1.74 1.55 1.58 2.01
Intuitive Surgical Inc. 2.49 2.30 2.74 3.88 4.47
Medtronic PLC 2.23 2.44 2.53 2.78 2.63 1.82
Stryker Corp. 1.52 1.58 1.58 1.73 1.89
Thermo Fisher Scientific Inc. 4.02 4.22 4.49 3.86 4.48
Inventory Turnover, Sector
Health Care Equipment & Services 12.61 13.52 13.80 13.83 14.39
Inventory Turnover, Industry
Health Care 5.37 5.37 5.80 5.50 5.59

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Inventory turnover = Cost of products sold ÷ Inventories
= 9,540 ÷ 2,743 = 3.48

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.’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in millions)
Revenues 17,117  17,290  15,983  12,093  12,483  10,282 
Trade receivables, net 2,398  2,345  2,319  1,744  1,618  1,618 
Short-term Activity Ratio
Receivables turnover1 7.14 7.37 6.89 6.93 7.72 6.35
Benchmarks
Receivables Turnover, Competitors2
Boston Scientific Corp. 6.47 5.87 6.11 5.84 5.70
Danaher Corp. 5.51 5.61 5.70 5.20 5.30
Edwards Lifesciences Corp. 8.52 8.00 8.15 8.15 8.11
Intuitive Surgical Inc. 6.75 6.94 5.46 6.11 6.29
Medtronic PLC 6.22 4.91 5.00 5.31 5.18 3.96
Stryker Corp. 5.31 5.14 5.83 5.66 5.76
Thermo Fisher Scientific Inc. 5.61 5.87 5.89 5.39 5.99
UnitedHealth Group Inc. 19.86 20.32 19.75 20.92 22.57
Receivables Turnover, Sector
Health Care Equipment & Services 11.09 10.82 10.68 10.67 11.08
Receivables Turnover, Industry
Health Care 7.23 7.39 7.49 7.32 7.59

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Receivables turnover = Revenues ÷ Trade receivables, net
= 17,117 ÷ 2,398 = 7.14

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.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 9,540  9,002  8,721  6,151  6,492  5,587 
Accounts payable 1,355  1,092  1,106  797  665  631 
Short-term Activity Ratio
Payables turnover1 7.04 8.24 7.89 7.72 9.76 8.85
Benchmarks
Payables Turnover, Competitors2
Boston Scientific Corp. 6.75 5.75 8.06 4.89 5.42
Danaher Corp. 4.79 5.23 5.13 5.39 5.08
Edwards Lifesciences Corp. 5.50 6.18 7.01 7.51 8.21
Intuitive Surgical Inc. 18.35 11.08 11.12 11.33 11.89
Medtronic PLC 4.72 4.69 5.56 5.37 5.35 3.92
Stryker Corp. 6.54 7.69 7.22 8.77 8.76
Thermo Fisher Scientific Inc. 7.45 7.40 8.36 8.03 10.69
UnitedHealth Group Inc. 8.69 8.51 8.67 8.63 8.63
Payables Turnover, Sector
Health Care Equipment & Services 7.94 7.94 8.17 8.06 8.21
Payables Turnover, Industry
Health Care 5.69 5.78 5.99 5.81 5.96

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Payables turnover = Cost of products sold ÷ Accounts payable
= 9,540 ÷ 1,355 = 7.04

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.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Working Capital Turnover

Becton, Dickinson & Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in millions)
Current assets 8,969  6,664  7,411  18,633  6,367  6,045 
Less: Current liabilities 5,836  5,655  7,216  3,342  4,400  4,386 
Working capital 3,133  1,009  195  15,291  1,967  1,659 
 
Revenues 17,117  17,290  15,983  12,093  12,483  10,282 
Short-term Activity Ratio
Working capital turnover1 5.46 17.14 81.96 0.79 6.35 6.20
Benchmarks
Working Capital Turnover, Competitors2
Boston Scientific Corp. 3.29
Danaher Corp. 3.48 0.87 8.83 8.91
Edwards Lifesciences Corp. 2.00 2.09 2.64 3.04 1.74
Intuitive Surgical Inc. 0.77 1.23 1.06 1.49 1.02
Medtronic PLC 2.48 2.26 2.32 2.79 1.75 0.93
Stryker Corp. 3.08 2.14 2.76 2.76 2.40
Thermo Fisher Scientific Inc. 2.76 4.48 5.44 8.82 8.48
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 13.11 10.69 24.89 13.50 20.86
Working Capital Turnover, Industry
Health Care 7.54 5.24 5.18 4.28 3.70

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Working capital turnover = Revenues ÷ Working capital
= 17,117 ÷ 3,133 = 5.46

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.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Inventory Processing Period

Becton, Dickinson & Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Inventory turnover 3.48 3.49 3.56 3.38 3.78 2.85
Short-term Activity Ratio (no. days)
Average inventory processing period1 105 105 103 108 97 128
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boston Scientific Corp. 142 185 151 152 144
Danaher Corp. 85 75 79 83 83
Edwards Lifesciences Corp. 271 210 236 231 182
Intuitive Surgical Inc. 147 159 133 94 82
Medtronic PLC 164 150 144 131 139 200
Stryker Corp. 241 231 231 211 193
Thermo Fisher Scientific Inc. 91 87 81 95 82
Average Inventory Processing Period, Sector
Health Care Equipment & Services 29 27 26 26 25
Average Inventory Processing Period, Industry
Health Care 68 68 63 66 65

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.48 = 105

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Receivables turnover 7.14 7.37 6.89 6.93 7.72 6.35
Short-term Activity Ratio (no. days)
Average receivable collection period1 51 50 53 53 47 57
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boston Scientific Corp. 56 62 60 62 64
Danaher Corp. 66 65 64 70 69
Edwards Lifesciences Corp. 43 46 45 45 45
Intuitive Surgical Inc. 54 53 67 60 58
Medtronic PLC 59 74 73 69 70 92
Stryker Corp. 69 71 63 64 63
Thermo Fisher Scientific Inc. 65 62 62 68 61
UnitedHealth Group Inc. 18 18 18 17 16
Average Receivable Collection Period, Sector
Health Care Equipment & Services 33 34 34 34 33
Average Receivable Collection Period, Industry
Health Care 51 49 49 50 48

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.14 = 51

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.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Operating Cycle

Becton, Dickinson & Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Average inventory processing period 105 105 103 108 97 128
Average receivable collection period 51 50 53 53 47 57
Short-term Activity Ratio
Operating cycle1 156 155 156 161 144 185
Benchmarks
Operating Cycle, Competitors2
Boston Scientific Corp. 198 247 211 214 208
Danaher Corp. 151 140 143 153 152
Edwards Lifesciences Corp. 314 256 281 276 227
Intuitive Surgical Inc. 201 212 200 154 140
Medtronic PLC 223 224 217 200 209 292
Stryker Corp. 310 302 294 275 256
Thermo Fisher Scientific Inc. 156 149 143 163 143
Operating Cycle, Sector
Health Care Equipment & Services 62 61 60 60 58
Operating Cycle, Industry
Health Care 119 117 112 116 113

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 105 + 51 = 156

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.

Average Payables Payment Period

Becton, Dickinson & Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Payables turnover 7.04 8.24 7.89 7.72 9.76 8.85
Short-term Activity Ratio (no. days)
Average payables payment period1 52 44 46 47 37 41
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boston Scientific Corp. 54 64 45 75 67
Danaher Corp. 76 70 71 68 72
Edwards Lifesciences Corp. 66 59 52 49 44
Intuitive Surgical Inc. 20 33 33 32 31
Medtronic PLC 77 78 66 68 68 93
Stryker Corp. 56 47 51 42 42
Thermo Fisher Scientific Inc. 49 49 44 45 34
UnitedHealth Group Inc. 42 43 42 42 42
Average Payables Payment Period, Sector
Health Care Equipment & Services 46 46 45 45 44
Average Payables Payment Period, Industry
Health Care 64 63 61 63 61

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.04 = 52

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.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Cash Conversion Cycle

Becton, Dickinson & Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Average inventory processing period 105 105 103 108 97 128
Average receivable collection period 51 50 53 53 47 57
Average payables payment period 52 44 46 47 37 41
Short-term Activity Ratio
Cash conversion cycle1 104 111 110 114 107 144
Benchmarks
Cash Conversion Cycle, Competitors2
Boston Scientific Corp. 144 183 166 139 141
Danaher Corp. 75 70 72 85 80
Edwards Lifesciences Corp. 248 197 229 227 183
Intuitive Surgical Inc. 181 179 167 122 109
Medtronic PLC 146 146 151 132 141 199
Stryker Corp. 254 255 243 233 214
Thermo Fisher Scientific Inc. 107 100 99 118 109
Cash Conversion Cycle, Sector
Health Care Equipment & Services 16 15 15 15 14
Cash Conversion Cycle, Industry
Health Care 55 54 51 53 52

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 105 + 5152 = 104

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.’s cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.