Bristol-Myers Squibb Company (BMY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 28,033,000 | 28,446,000 | 31,009,000 | 11,773,000 | 8,078,000 |
| Inventory | US$ in thousands | 2,662,000 | 2,339,000 | 2,095,000 | 2,074,000 | 4,293,000 |
| Inventory turnover | 10.53 | 12.16 | 14.80 | 5.68 | 1.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $28,033,000K ÷ $2,662,000K
= 10.53
The inventory turnover ratio for Bristol-Myers Squibb Co. has shown a declining trend over the past five years, decreasing from 5.68 in 2020 to 4.02 in 2023. This indicates that the company is taking longer to sell its inventory in recent years. A lower inventory turnover ratio may suggest inefficiencies in inventory management, such as overstocking or slow-moving products.
A possible reason for this decline could be related to changes in demand patterns, production delays, or issues in the supply chain that have impacted the company's ability to efficiently manage its inventory levels. It is important for Bristol-Myers Squibb Co. to closely monitor and address factors affecting inventory turnover to optimize its working capital and improve overall operational performance.
Peer comparison
Dec 31, 2023