The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Becton Dickinson's Cash Ratio for the quarter that ended in Dec. 2023 was 0.16.
Becton Dickinson has a Cash Ratio of 0.16. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Becton Dickinson's Cash Ratio or its related term are showing as below:
FRA:BOX'
s Cash Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.35 Max: 4.25
Current: 0.16
During the past 13 years, Becton Dickinson's highest Cash Ratio was 4.25. The lowest was 0.08. And the median was 0.35.
FRA:BOX's Cash Ratio is ranked worse than 88.32% of 856
companies
in the Medical Devices & Instruments industry
Industry Median: 1.25
vs FRA:BOX: 0.16
Becton Dickinson Cash Ratio Historical Data
The historical data trend for Becton Dickinson's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Becton Dickinson's Cash Ratio
For the Medical Instruments & Supplies subindustry, Becton Dickinson's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Becton Dickinson's Cash Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Becton Dickinson's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Becton Dickinson's Cash Ratio falls into.
Becton Dickinson Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Becton Dickinson's Cash Ratio for the fiscal year that ended in Sep. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Becton Dickinson (FRA:BOX) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Becton Dickinson Cash Ratio Related Terms
Thank you for viewing the detailed overview of Becton Dickinson's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Becton, Dickinson is the world's largest manufacturer and distributor of medical surgical products, such as needles, syringes, and sharps-disposal units. The company also manufactures pre-filled devices, diagnostic instruments and reagents, as well as flow cytometry and cell-imaging systems. BD Medical is nearly half of the total business, while BD Life Sciences (26% of estimated 2023 revenue) and BD Interventional (25%) account for the remainder. International revenue accounts for 43% of the company's business.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:BOX has been successfully added to your 