Becton, Dickinson and Company (BDX) Financials

Becton, Dickinson and Company (NYSE: BDX) has demonstrated a generally strong and improving financial performance over the last four years, with steady growth in revenues and net income, alongside solid cash flow generation.

Key positive trends:

• Operating revenues have consistently increased year-over-year, rising from approximately $4.58 billion in Q1 2023 to about $5.51 billion in Q3 2025, signaling strong top-line growth.
• Net income has shown notable growth from $281 million in Q1 2024 to $574 million in Q3 2025, indicating improved profitability.
• Gross profit margins have improved, as total gross profit rose from $2.03 billion in Q1 2023 to $2.63 billion in Q3 2025, reflecting better cost control and pricing power.
• Operating income has increased steadily, topping $882 million in Q3 2025 compared to $439 million in Q1 2025, showcasing operational efficiency.
• Operating cash flow from continuing activities averaged more than $1 billion per quarter in 2025, supporting dividend payments and capital expenditures comfortably.
• The company continues to invest in property, plant & equipment, with capital expenditures increasing to $174 million in Q3 2025, suggesting ongoing capacity expansion or modernization.
• Strong cash position with cash & equivalents increasing from $612 million in Q1 2023 to $735 million in Q3 2025, providing liquidity and financial flexibility.
• Consistent payment of dividends with quarterly dividends per share growing slightly from $0.87 in Q1 2023 to $1.04 in Q3 2025, reflecting management’s commitment to shareholder returns.
• Reduction in diluted shares outstanding indicates share repurchase activity and a focus on enhancing shareholder value.

Neutral observations:

• Total liabilities have remained relatively stable around $29 billion to $31 billion, with manageable levels of both short-term and long-term debt, showing balanced capital structure management.
• Goodwill and intangible assets remain significant, totaling approximately $29 billion, reflecting acquisitions that could both add value but require monitoring for impairment risks.
• Fluctuations in the restructuring charges and other operating expenses suggest ongoing cost management initiatives or business restructuring.
• Interest expenses have increased slightly to around $152 million by Q3 2025, consistent with the increased debt levels; net interest expense remains reasonable compared to operating income.
• While capital expenditure levels are elevated, the exact nature (expansion vs. maintenance) would need further analysis to assess the impact on future earnings.

Areas of concern or negative trends:

• Investing cash flows have turned negative recently, with net cash used in investing activities reaching approximately -$337 million in Q3 2025 and larger dips in prior periods, driven by significant acquisition and investment spending, which could pressure free cash flow if not accretive.
• Net cash used in financing activities was substantial at about -$841 million in Q3 2025, largely due to debt repayment and dividend payments, indicating significant cash outflows required to service financing and return capital to shareholders.
• Inventory levels have grown notably from around $3.3 billion in early 2023 to near $4.0 billion in Q3 2025, which may raise concerns about inventory management or future demand.
• Large goodwill and intangible assets could expose the company to impairment risks if future earnings decline or fail to meet expectations, impacting net income in future periods.
• While operating income has increased, total operating expenses have also risen, including higher restructuring charges and other operating expenses, which may pressure operating margin sustainability.

Summary: Becton, Dickinson and Company has experienced solid growth in revenues, earnings, and cash flows over the past several years, supported by ongoing investments and operational improvements. The company maintains a strong cash position and consistent dividends, which are positive for shareholders. However, rising inventory levels, heavy investing outflows, and large goodwill balances warrant monitoring as potential risk factors. Overall, the financials suggest a stable and growing healthcare company with disciplined capital deployment, though investors should keep an eye on cost controls and capital allocation effectiveness.