Bristol-Myers Squibb Company (BMY)

Days of sales outstanding (DSO)

		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
Receivables turnover		4.12	4.36	4.47	4.56	4.67	4.86	5.21	5.52	4.95	4.92	4.92	4.94	5.00	4.89	4.44	3.74	3.40	4.39	4.21	4.08
DSO	days	88.57	83.70	81.68	80.04	78.17	75.07	70.10	66.15	73.72	74.22	74.15	73.84	72.98	74.70	82.24	97.59	107.29	83.20	86.70	89.40

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 gradual increase over the last eight quarters, indicating that the company is taking longer to collect its accounts receivable. The DSO increased from 66.15 days in Q1 2022 to 88.57 days in Q4 2023. This upward trend suggests potential difficulties in collecting payments from customers or a change in the company's credit policies.

A higher DSO could imply that Bristol-Myers Squibb Co. is facing challenges in liquidity management, as it means the company's cash is tied up in accounts receivable for a longer period. This could lead to cash flow constraints and impact the company's ability to meet its short-term obligations or invest in growth opportunities.

Management should closely monitor and analyze the reasons behind the increasing DSO to identify potential issues in the collections process, customer creditworthiness, or changes in market dynamics. Implementing strategies to improve collections efficiency, such as incentivizing early payments or tightening credit terms, may help in reducing the DSO and enhancing the company's overall financial performance.