Bristol-Myers Squibb Company (BMY)
Payables 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 |
| Payables | US$ in thousands | 3,259,000 | 3,040,000 | 2,949,000 | 2,713,000 | 2,445,000 |
| Payables turnover | 8.60 | 9.36 | 10.52 | 4.34 | 3.30 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $28,033,000K ÷ $3,259,000K
= 8.60
The payables turnover for Bristol-Myers Squibb Co. has displayed a fluctuating trend over the past five years. The ratio decreased from 4.34 in 2020 to 3.30 in 2019, followed by a slight increase to 3.37 in 2021. However, in the most recent year, the payables turnover declined further to 3.28 in 2023.
A payables turnover ratio of 3.28 in 2023 indicates that Bristol-Myers Squibb Co. is taking approximately 3.28 times to pay off its trade payables during the year. This suggests a relatively stable performance in managing its accounts payable compared to the previous year. However, it is essential to assess this ratio in conjunction with industry benchmarks and company-specific factors to gain a comprehensive understanding of the efficiency of their payables management.
The decreasing trend in payables turnover may imply that the company is taking longer to pay its suppliers, which could have both positive and negative implications. Further analysis of the company's cash flow, working capital management, and supplier relationships would provide deeper insights into the implications of this trend. Additional context and comparative analysis with peers would also be beneficial in assessing Bristol-Myers Squibb Co.'s payables turnover performance.
Peer comparison
Dec 31, 2023