Bristol-Myers Squibb Company (BMY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.12	4.67	4.95	5.00	3.40
DSO	days	88.57	78.17	73.72	72.98	107.29

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.12
= 88.57

Bristol-Myers Squibb Co.'s Days of Sales Outstanding (DSO) have shown a decreasing trend over the past five years, indicating efficiency in collecting receivables. The DSO decreased from 107.29 days in 2019 to 88.57 days in 2023. This improvement suggests that the company has been more effective in converting its accounts receivable into cash in recent years.

The lower DSO in 2023 compared to previous years signifies that Bristol-Myers Squibb Co. is collecting payments from customers more quickly, which can enhance cash flow and working capital management. This could be attributed to tighter credit policies, improved collection processes, or better customer payment behavior.

Overall, the decreasing DSO trend indicates a positive development in Bristol-Myers Squibb Co.'s accounts receivable management and cash flow efficiency. It suggests that the company has been successful in optimizing its receivables turnover and working capital cycle.