 Over the past three months, shares of Becton, Dickinson Inc. NYSE: BDX fell by 1.87. Before having a look at the importance of debt, lets look at how much debt Becton, Dickinson has.Becton, Dickinsons Debt Based on Becton, Dickinsons balance sheet as of May 7, 2020, long-term debt is at 16.81 billion and current debt is at 4.36 billion, amounting to 21.17 billion in total debt. Adjusted for 2.35 billion in cash-equivalents, the companys net debt is at 18.82 billion.To understand the degree of financial leverage a company has, shareholders look at the debt ratio. Considering Becton, Dickinsons 53.52 billion in total assets, the debt-ratio is at 0.4. Generally speaking, a debt-ratio more than 1 means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. For example, a debt ratio of 40 might be higher for one industry, whereas normal for another.Importance of Debt Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.See more from Benzinga Insider Sells Becton, Dickinsons Stock Benzingas Top Upgrades, Downgrades For July 9, 2020C 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 