Business Analysis of Becton Dickinson

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Becton Dickinson

BECTON DICKINSON

Business Overview

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide. It operates in two segments, BD Medical and BD Life Sciences. The BD Medical segment offers syringes, pen needles, and IV sets for diabetes; needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; skin antiseptic products; surgical and laproscopic instrumentations; intravenous medication safety and infusion therapy delivery, and automated medication dispensing and supply management systems; and prefillable drug delivery systems. The BD Life Sciences segment provides integrated systems for specimen collection; safety-engineered blood collection, automated blood culturing and tuberculosis culturing, and microorganism identification and drug susceptibility systems; molecular testing systems for infectious diseases and women's health; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; microbiology laboratory automation, and plated media products; fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; molecular indexing and next-generation sequencing sample preparation for genomics research; clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers; and cell culture media supplements for biopharmaceutical manufacturing. The company markets its products through independent distribution channels and sales representatives to healthcare institutions, life science researchers, clinical laboratories, pharmaceutical industry, and general public. It has a strategic collaboration with FlowJo, LLC. Becton, Dickinson and Company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.

Becton Dickinson

Becton Dickinson


R&P Rank: 225
Sector: Life Sciences
Industry:Medical Devices
H.Q Location:New Jersey
Website: www.bd.com
Company Address:
ONE BECTON DR, FRANKLIN LAKES NJ 07417-1880
Ph:201-847-6800

Business Analysis of Becton Dickinson

The Life Sciences Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Becton Dickinson compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Becton Dickinson to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Becton Dickinson with an interactive chart.

  1. Revenue Growth: Becton Dickinson reported a revenue growth of 21.4% year-on-year during 2016. Medical Devices Industry grew at 20.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Becton Dickinson spent 52.0% of its total revenues on COGS. Medical Devices industry average (COGS share of revenue) in the same period was 41.0%
  3. R&D share of Revenues: As a percentage of revenue, Becton Dickinson spent 6.6% of its total revenues on R&D. Medical Devices industry average R&D spending in the same period was 7.2%
  4. SG&A share of Revenues: As a percentage of revenue, Becton Dickinson spent 24.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Medical Devices industry average SG&A spending in the same period was 33.2%
  5. Inventory share of Revenues: As a percentage of revenue, Becton Dickinson spent 13.8% of its total revenues on Inventories. Medical Devices industry average Inventory spending in the same period was 14.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Becton Dickinson invested 25.7% of its total revenues on Accounts Payable (A/P) Medical Devices industry average Accounts Payable investment in the same period was 9.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Becton Dickinson invested 13.0% of its total revenues on Accounts Receivable (A/R). Medical Devices industry average Accounts Receivable investment in the same period was 17.3%
  8. PP&E share of Revenues: As a percentage of revenue, Becton Dickinson invested 31.3% of its total revenues on Property, Plants, and Equipments (PP&E). Medical Devices industry average PPE investment in the same period was 22.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Becton Dickinson invested 110.3% of its total revenues on Intangibles. Medical Devices industry average Intangibles investment in the same period was 124.7%
  10. Net Margins: Becton Dickinson Net Margins in the year 2016 were 7.8%. Medical Devices industry average Net Margins in the same period were 11.7%

Sector and Industry Association of Becton Dickinson

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Becton Dickinson is associated with Healthcare Sector Group, Life Sciences Sector, and Medical Devices Industry.

Life Sciences sector is comprised of the following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. The definitions for each of the industries is as follows:

  • Pharmaceuticals industry includes companies that discover, develop, manufacture, and market medicines licensed for use as medications. In general these companies offer pharmaceutical products that can be described as prescription or over-the-counter medicines. Many Pharmaceutical companies also offer a diverse portfolio of animal health products, services and solutions. Many diversified pharmaceutical companies operate in more than two operating segments like consumer health products, medical devices and pharmaceutical.
  • Medical Devices industry includes manufacturers and distributors of medical equipments and medical supplies. Medical equipments include large scale capital equipmets such as X-Ray machines and MRI scanners and other nondisposable medical devices like stents and pacemakers. Medical supplies include makers of contact lenses, eyeglass lenses, bandages and other disposable products.
  • Biotechnology industry includes Biotechnology product companies, subscription companies, and service companies. Biotechnology product companies offer pharmaceutical drug products that are manufactured in, extracted from, or semi synthesized from biological sources. Subscription-based companies develop genome databases, which can be used to develop medicinal drugs. Service companies offer solutions based on a common technology or generic tool of other large pharmaceutical or biopharmaceutical companies.
  • Diagnostics & Scientific Instruments industry includes companies that provide testing products, diagnostic reagents, instruments and diagnostic services to aid in the detection and treatment of a wide range of diseases. It also includes molecular diagnostic and genetic testing companies that develop, manufacture, market and provide diagnostic tests, diagnostic systems and related products and services. Also included are companies that manufacture and market analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics.

Industry Ranking of Becton Dickinson

With $12.5 billion revenues, Becton Dickinson ranked number 2 of all the companies in the US Medical Devices industry. There were a total of 81 public companies in the US Medical Devices industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Medical Devices industry by revenues during 2016 were:

  1. Medtronic ($28.8 billion)
  2. Becton Dickinson ($12.5 billion)
  3. Stryker ($11.3 billion)
  4. Baxter International ($10.2 billion)
  5. Boston Scientific ($8.4 billion)
  6. Zimmer Biomet ($7.7 billion)
  7. Dentsply Sirona ($3.7 billion)
  8. C. R. Brad ($3.7 billion)
  9. Varian Medical Systems ($3.2 billion)
  10. Edwards Lifesciences ($3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Becton Dickinsonand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of becton-dickinson

Medtronic (MDT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Medtronic Plc with $29 billion revenues in the year 2016 was the number 1 Medical Devices company. Read this report to know the top competitors of Medtronic and identify growth and cost optimization opportunities of Medtronic

Stryker (SYK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Stryker Corp with $11 billion revenues in the year 2016 was the number 3 Medical Devices company. Read this report to know the top competitors of Stryker and identify growth and cost optimization opportunities of Stryker

Baxter International (BAX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Baxter International Inc with $10 billion revenues in the year 2016 was the number 4 Medical Devices company. Read this report to know the top competitors of Baxter International and identify growth and cost optimization opportunities of Baxter International

Boston Scientific (BSX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Boston Scientific Corp with $8 billion revenues in the year 2016 was the number 5 Medical Devices company. Read this report to know the top competitors of Boston Scientific and identify growth and cost optimization opportunities of Boston Scientific

Zimmer Biomet (ZBH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Zimmer Biomet Holdings, Inc. with $8 billion revenues in the year 2016 was the number 6 Medical Devices company. Read this report to know the top competitors of Zimmer Biomet and identify growth and cost optimization opportunities of Zimmer Biomet

Dentsply Sirona (XRAY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dentsply Sirona Inc. with $4 billion revenues in the year 2016 was the number 7 Medical Devices company. Read this report to know the top competitors of Dentsply Sirona and identify growth and cost optimization opportunities of Dentsply Sirona

Revenues Analysis

Becton Dickinson (BDX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Becton Dickinson & Co (BDX) from 2012 to 2016. Becton Dickinson generated a total of $12.5 billion revenues during 2016. Becton Dickinson reported a revenue growth of 21.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Becton Dickinson (BDX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Becton Dickinson & Co (BDX) from 2002 to 2016. Becton Dickinson generated a total of $12.5 billion revenues during 2016. Becton Dickinson reported a revenue growth of 21.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Becton Dickinson (BDX) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Becton Dickinson & Co (BDX) revenue growth with Medical Devices industry growth during the last five years from 2012 to 2016. Becton Dickinson reported a revenue growth of 21.4% year-over-year during 2016. The Medical Devices industry growth was 20.5% year-over-year during 2016. Becton Dickinson growth was faster than the industry during 2016.