Bristol-Myers Squibb Company (BMY)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		12.39	9.04	9.61	9.75	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
DOH	days	29.47	40.37	37.99	37.43	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.39
= 29.47

The days of inventory on hand (DOH) for Bristol-Myers Squibb Company have shown a declining trend over the years, indicating efficiency in managing its inventory levels. The company had 104.39 days of inventory on hand as of March 31, 2020, but this figure steadily decreased to 29.47 days by December 31, 2024.

A lower DOH figure generally implies that the company is selling its inventory at a faster rate, minimizing holding costs and potential obsolescence risks. Bristol-Myers Squibb's decreasing DOH over the period signifies more effective inventory management and potential improvements in supply chain processes.

However, it's crucial to note that a too low DOH figure may suggest stockouts or challenges in meeting customer demand promptly. Thus, Bristol-Myers Squibb needs to maintain an optimal balance in inventory levels to support operational efficiency and customer satisfaction while avoiding excessive carrying costs.