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Becton, Dickinson and Co Altman Z-Score

: 2.65 (As of Today)
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Warning Sign:

Altman Z-score of 2.64 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Becton, Dickinson and Co has a Altman Z-Score of 2.65, indicating it is in Grey Zones. This implies that Becton, Dickinson and Co is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Becton, Dickinson and Co's Altman Z-Score or its related term are showing as below:

BDX' s Altman Z-Score Range Over the Past 10 Years
Min: 1.64   Med: 4   Max: 9.67
Current: 2.64

During the past 13 years, Becton, Dickinson and Co's highest Altman Z-Score was 9.67. The lowest was 1.64. And the median was 4.00.


Becton, Dickinson and Co Altman Z-Score Historical Data

The historical data trend for Becton, Dickinson and Co's Altman Z-Score 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.

* Premium members only.

Becton, Dickinson and Co Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.48 1.99 2.13 2.12 2.33

Becton, Dickinson and Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score 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 2.26 2.33 2.39 2.45 2.54

Competitive Comparison

For the Medical Instruments & Supplies subindustry, Becton, Dickinson and Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 and Co Altman Z-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Becton, Dickinson and Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Becton, Dickinson and Co's Altman Z-Score falls into.



Becton, Dickinson and Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Becton, Dickinson and Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0464+1.4*0.2836+3.3*0.0522+0.6*2.7231+1.0*0.3875
=2.65

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $53,199 Mil.
Total Current Assets was $9,547 Mil.
Total Current Liabilities was $7,080 Mil.
Retained Earnings was $15,088 Mil.
Pre-Tax Income was 421 + 525 + 723 + 701 = $2,370 Mil.
Interest Expense was -99 + -101 + -98 + -111 = $-409 Mil.
Revenue was 4641 + 5011 + 4995 + 5966 = $20,613 Mil.
Market Cap (Today) was $75,443 Mil.
Total Liabilities was $27,705 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(9547 - 7080)/53199
=0.0464

X2=Retained Earnings/Total Assets
=15088/53199
=0.2836

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2370 - -409)/53199
=0.0522

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=75442.663/27705
=2.7231

X5=Revenue/Total Assets
=20613/53199
=0.3875

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Becton, Dickinson and Co has a Altman Z-Score of 2.65 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Becton, Dickinson and Co  (NYSE:BDX) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Becton, Dickinson and Co Altman Z-Score Related Terms

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Becton, Dickinson and Co Business Description

Becton, Dickinson and Co logo
Address
1 Becton Drive, Franklin Lakes, NJ, USA, 07417-1880
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 diagnostic instruments and reagents, as well as flow cytometry and cell-imaging systems. BD Interventional (largely the former Bard business) accounts for 23% of revenue. International revenue accounts for 44% of the company's business.
Executives
Hickey David officer: EVP & President, Life Sciences BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Neal Shana Carol officer: Chief People Officer 9120 LOCKWOOD BOULEVARD MECHANICSVILLE VA 23116
Ezell Antoine C officer: EVP, President, NA & CMO BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Spoerel Thomas J officer: VP Controller & Chief Acct Off BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Brown William M director HARRIS CORPORATION 1025 W NASA BOULEVARD MELBOURNE FL 32919
Larson Betty D officer: EVP HR & CHRO C/O C. R. BARD, INC. 730 CENTRAL AVENUE MURRAY HILL NJ 07974
Khichi Samrat S. officer: EVP and General Counsel C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873
Conroy Alexandre officer: EVP of Integrated Supply Chain BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Campion Simon D officer: EVP and Segment President BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Scott Bertram L director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Jones Christopher Ian Montague director 110, BANBURY ROAD OXFORD X0 OX2 6JU
Pomeroy Claire director BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417
Fraser Claire director C/O BECTON, DICKINSON AND COMPANY FRANKLIN LAKES NJ 07465
Melcher David F director 1650 TYSONS BOULEVARD SUITE 1700 MCLEAN VA 22102
Byington Carrie L director BECTON, DICKINSON AND COMPANY 1 BECTON DRIVE FRANKLIN LAKES NJ 07417

Becton, Dickinson and Co Headlines

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