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Becton, Dickinson and Co Quick Ratio

: 0.66 (As of Mar. 2020)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Becton, Dickinson and Co's quick ratio for the quarter that ended in Mar. 2020 was 0.66.

Becton, Dickinson and Co has a quick ratio of 0.66. It indicates that the company cannot currently fully pay back its current liabilities.

NYSE:BDX' s Quick Ratio Range Over the Past 10 Years
Min: 0.55   Med: 1.2   Max: 5.09
Current: 0.66

0.55
5.09

During the past 13 years, Becton, Dickinson and Co's highest Quick Ratio was 5.09. The lowest was 0.55. And the median was 1.20.

NYSE:BDX's Quick Ratio is ranked lower than
85% of the 659 Companies
in the Medical Devices & Instruments industry.

( Industry Median: 1.85 vs. NYSE:BDX: 0.66 )

Becton, Dickinson and Co Quick Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Becton, Dickinson and Co Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.84 1.06 5.03 0.69 0.72

Becton, Dickinson and Co Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.59 0.67 0.72 0.55 0.66

Competitive Comparison
* 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.


Becton, Dickinson and Co Quick Ratio Distribution

* The bar in red indicates where Becton, Dickinson and Co's Quick Ratio falls into.



Becton, Dickinson and Co Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Becton, Dickinson and Co's Quick Ratio for the fiscal year that ended in Sep. 2019 is calculated as

Quick Ratio (A: Sep. 2019 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(6664-2579)/5655
=0.72

Becton, Dickinson and Co's Quick Ratio for the quarter that ended in Mar. 2020 is calculated as

Quick Ratio (Q: Mar. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(8555-2793)/8755
=0.66

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Becton, Dickinson and Co  (NYSE:BDX) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Becton, Dickinson and Co Quick Ratio Related Terms


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