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BDX (Becton Dickinson) Interest Coverage : 5.21 (As of Jun. 2024)


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What is Becton Dickinson Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Becton Dickinson's Operating Income for the three months ended in Jun. 2024 was $714 Mil. Becton Dickinson's Interest Expense for the three months ended in Jun. 2024 was $-137 Mil. Becton Dickinson's interest coverage for the quarter that ended in Jun. 2024 was 5.21. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Becton Dickinson's Interest Coverage or its related term are showing as below:

BDX' s Interest Coverage Range Over the Past 10 Years
Min: 2.29   Med: 4.61   Max: 11.9
Current: 5.24


BDX's Interest Coverage is ranked worse than
76.26% of 417 companies
in the Medical Devices & Instruments industry
Industry Median: 17.9 vs BDX: 5.24

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Becton Dickinson Interest Coverage Historical Data

The historical data trend for Becton Dickinson's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Becton Dickinson Interest Coverage Chart

Becton Dickinson Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.51 2.29 5.18 6.22 5.36

Becton Dickinson Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial 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 5.18 4.29 4.62 6.68 5.21

Competitive Comparison of Becton Dickinson's Interest Coverage

For the Medical Instruments & Supplies subindustry, Becton Dickinson's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Becton Dickinson's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Becton Dickinson's Interest Coverage falls into.



Becton Dickinson Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Becton Dickinson's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Becton Dickinson's Interest Expense was $-452 Mil. Its Operating Income was $2,424 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,738 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*2424/-452
=5.36

Becton Dickinson's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Becton Dickinson's Interest Expense was $-137 Mil. Its Operating Income was $714 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,131 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*714/-137
=5.21

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Becton Dickinson  (NYSE:BDX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Becton Dickinson Interest Coverage Related Terms

Thank you for viewing the detailed overview of Becton Dickinson's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Becton Dickinson Business Description

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 prefilled 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 (27% of 2024 revenue) and BD Interventional (24%) account for the remainder. International revenue accounts for 43% of the company's business.
Executives
Thomas J Spoerel officer: VP Controller & Chief Acct Off BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Roland Goette officer: EVP and President, EMEA BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Michael David Garrison officer: EVP and President Medical BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Richard Byrd officer: EVP & President Interventional BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Claire Fraser director C/O BECTON, DICKINSON AND COMPANY, FRANKLIN LAKES NJ 07465
David Hickey officer: EVP & President, Life Sciences BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Joanne Waldstreicher director C/O STRUCTURE THERAPEUTICS INC., 611 GATEWAY BLVD, SUITE 223, SOUTH SAN FRANCISCO CA 94080
Michelle Quinn officer: EVP and Acting General Counsel 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
David Shan officer: EVP, Integrated Supply Chain 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Christopher Delorefice officer: EVP & CFO BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Polen Thomas E Jr officer: Executive Vice President BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Samrat S. Khichi officer: EVP and General Counsel C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873
Rishi Grover officer: EVP and Chief ISC Officer BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Pavan Kumar Mocherla officer: EVP and President Greater Asia BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
James C Lim officer: Executive Vice President BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417