CPP Becton Dickinson Company Evaluation & Key Financial Ratios Case Study

CASE SCENARIO: The CEO has asked you (the Controller) to evaluate the company — Becton Dickinson. This project goes beyond the basic financial statement analysis. You can obtain the most recent 10-K reports from www.sec.gov.

Requirements:

• Bullet points are acceptable. Footnotes & references are important in academic settings; however, short & concise notes are prevalent in corporate settings.

• Clearly label the 4 parts:

Part 1: Briefly provide company background (one paragraph).

Part 2: Present key financial ratios that support your recommendation.

Part 3: Your recommendation if this is a good investment opportunity.

Part 4: Present any relevant information especially off-balance sheet and other disclosures.

• No need to turn in 10-Ks.

Some factors to consider:

• What do you know about the company?

• What are the basic financial ratios (liquidity, profitability, solvency)?

• How do the financial ratios compare with other companies in the same industry?

• What are the key highlights of the company’s financial performance?

• What are the challenges (strengths and weaknesses) facing this industry/company?

• Does the company have a history of solid, steady growth, or the potential to grow?

• Has the company weathered the last recession well?

• How big is the market/demand for the products/services?

• Who are the major competitors and how successful are they?

• Who are the major customers?

• Do the directors and other company officers have a solid track record of success?

• What is their management style?

• How much of the company do the directors and officers own?

• Do you share the same vision and values of the CEO of the company?

• Can the CEO and leadership team execute their vision?