Becton Dickinson

Becton Dickinson - Becton Dickinson Company Research Report...

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Unformatted text preview: Becton Dickinson Company Research Report I ntroduction Though ranking 392 nd in Fortune 500’s list of top companies, Becton Dickinson is one of the leading institutions in the healthcare industry across the globe, ranking 4 th in the Medical Products and Equipment Industry for its constant generation of innovative products and services. Established in 1897 by co-founders Maxwell W. Becton and Fairleigh S. Dickinson, the company has revolutionized the healthcare industry with its emphasis on safety, ease, and effectiveness in the application of BD products in the medical field. Facts Outlined Company Type Public (NYSE: BDX) Fiscal Year-End September 2007 Sales (mil.) $6,360 1-Year Sales Growth 9.0% 2007 Net I ncome (mil.) $890 1-Year Employee Growth 5.5% Company $ size (annual revenues) and number of employees Becton Dickinson collects an annual revenue of $5,464.4 million as of 2006. BD currently employs 26,990 people as of 9/9/2006. These employees are in fields such as medical, diagnostics, and biosciences. Since Becton Dickinson is a vast company, the jobs range from all sorts of professions to regular maintenance. Company profitability Becton Dickinson’s’ company profitability is broken down into three main components: o Gross Margin (TTM)% o Operat ing Margin (TTM)% o Profit Margin (TTM)% These are all ways of measuring management’s efficiency. They all compare company operations to its competitors. Gross Margin is a measurement of a company’s manufacturing and dist ribut ion efficiency during the production process. It shows how much of each revenue dollar is left over after subtracting costs directly earned to generate those sales. When a company’s gross profit margin is higher than the indust ry or its competitors, it means that they are more efficient. To figure gross profit margin you divide total revenue by gross profit. Operat ing Margin is the measurement of quality of a company’s operat ions between its competitors. It tells a company how much of each sales dollar is left over after subtracting direct costs of generat ing the sales and indirect costs, such as corporate overhead. When a company’s operating margin is higher than the indust ry’s average, it usually has lower fixed costs and a better gross margin, which gives management more f lexibility in determ ining prices. To calculate operating margin divide the operat ing income by the total revenue. Profit Margin shows how much profit a company makes for every $1 it generates in revenue. Again, if a company’s profit margin is higher than its competitors, they are better off. To figure profit margin you divide revenue by net income after taxes. I ndustry/Market Segment Becton Dickinson is a leading figure in the medical products and equipment indust ry, applying the latest technologies to its products, services, and research. As mentioned earlier, it has divided itself into three specialized market segments: BD Medical, BD Diagnostics, and BD Biosciences. Major Subsidiaries/Divisions Within the Corporate Organization...
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This note was uploaded on 04/09/2008 for the course BT 101 taught by Professor Skown during the Fall '07 term at Stevens.

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Becton Dickinson - Becton Dickinson Company Research Report...

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