Bristol-Myers Squibb Company (BMY)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	31,669,000	30,129,000	29,560,000	29,110,000	28,140,000	28,361,000	28,400,000	28,232,000	28,441,000	29,647,000	29,522,000	29,550,000	30,186,000	24,483,000	20,138,000	15,758,000	11,773,000	11,355,000	10,643,000	9,916,000
Inventory	US$ in thousands	2,557,000	3,332,000	3,077,000	2,985,000	2,662,000	2,436,000	2,364,000	2,605,000	2,339,000	2,074,000	2,142,000	2,104,000	2,095,000	2,163,000	2,137,000	1,953,000	2,074,000	1,949,000	2,384,000	2,836,000
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $31,669,000K ÷ $2,557,000K
= 12.39

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Bristol-Myers Squibb Company, the inventory turnover has shown an increasing trend over the period analyzed.

Starting at 3.50 on March 31, 2020, the inventory turnover improved steadily to reach its peak of 14.41 on December 31, 2021. This indicates that the company was able to sell and replace its inventory more than 14 times during that period. However, the ratio declined slightly to 9.75 on March 31, 2024, and then continued to fluctuate around 9-12 in the subsequent quarters.

A higher inventory turnover ratio generally indicates that a company is managing its inventory efficiently and minimizing the risk of obsolete inventory or carrying costs. In the case of Bristol-Myers Squibb, the increasing trend until 2021 suggests effective inventory management practices. However, the slight decline in recent periods may warrant further analysis to understand the factors driving this change.

Overall, the inventory turnover ratio for Bristol-Myers Squibb indicates that the company has been able to turn over its inventory effectively, although there have been fluctuations in the ratio over time that may require monitoring and analysis for potential implications on the company's operations and financial performance.