Bristol-Myers Squibb Company (BMY)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		10.57	11.64	12.01	10.84	12.16	14.29	13.78	14.04	14.41	11.32	9.42	8.07	5.68	5.83	4.46	3.50	1.88	6.09	5.42	5.24
DOH	days	34.53	31.35	30.38	33.68	30.02	25.53	26.48	25.99	25.33	32.25	38.73	45.24	64.30	62.65	81.76	104.39	193.98	59.96	67.30	69.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.57
= 34.53

Days of Inventory on Hand (DOH) is a key financial ratio that indicates the average number of days a company holds inventory before selling it. A lower DOH value is generally more favorable as it suggests efficient inventory management.

Analyzing the DOH trend of Bristol-Myers Squibb Co. over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the DOH was 90.87 days, which increased from the previous quarter but remained relatively high compared to historical data. This may indicate a slower inventory turnover rate or potential challenges in managing inventory levels efficiently.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we note a slight increase in DOH from 84.22 days to 90.87 days. This indicates that Bristol-Myers Squibb Co. is holding its inventory for a longer period in the most recent quarter, which could tie up capital and impact cash flow.

Overall, the rising trend in DOH for Bristol-Myers Squibb Co. suggests a potential need for closer monitoring and optimization of inventory levels to enhance operational efficiency and maximize profitability in the long run. Adequate inventory management is crucial to reduce carrying costs, mitigate inventory obsolescence risks, and maintain a healthy cash conversion cycle.