Bristol-Myers Squibb Company (BMY)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 48,300,000 | 45,006,000 | 46,159,000 | 46,385,000 | 42,518,000 |
| Property, plant and equipment | US$ in thousands | 7,136,000 | 6,646,000 | 6,255,000 | 6,049,000 | 5,886,000 |
| Fixed asset turnover | 6.77 | 6.77 | 7.38 | 7.67 | 7.22 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $48,300,000K ÷ $7,136,000K
= 6.77
The fixed asset turnover ratio for Bristol-Myers Squibb Company has shown some fluctuation over the past five years. It was 7.22 in December 31, 2020, increased to 7.67 by December 31, 2021, then slightly declined to 7.38 by December 31, 2022. However, there was a notable decrease in the ratio to 6.77 by December 31, 2023, and this level was maintained in the following year on December 31, 2024.
A high fixed asset turnover ratio indicates that the company is generating more sales revenue per dollar of fixed assets, which is generally positive as it implies better asset utilization. The declining trend from 2022 to 2024 may suggest that the company was less efficient in utilizing its fixed assets to generate sales during those periods. Further analysis of the company's operational efficiency, investment in fixed assets, and sales growth would be necessary to understand the underlying reasons for the fluctuations in the fixed asset turnover ratio.
Peer comparison
Dec 31, 2024