Bristol-Myers Squibb Company (BMY)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 31,769,000 | 28,033,000 | 28,446,000 | 31,009,000 | 11,773,000 |
| Payables | US$ in thousands | 3,602,000 | 3,259,000 | 3,040,000 | 2,949,000 | 2,713,000 |
| Payables turnover | 8.82 | 8.60 | 9.36 | 10.52 | 4.34 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $31,769,000K ÷ $3,602,000K
= 8.82
The payables turnover of Bristol-Myers Squibb Company has shown a positive trend over the past five years, increasing from 4.34 in December 31, 2020, to 8.82 in December 31, 2024. This indicates that the company is managing its accounts payable more efficiently, as a higher turnover ratio suggests that it is taking less time to pay off its suppliers.
The significant improvement in payables turnover from 2020 to 2024 implies that Bristol-Myers Squibb is operating more effectively in managing its supplier payments, potentially negotiating better payment terms or enhancing its internal processes for managing accounts payable.
It is important to note that a high payables turnover ratio can also indicate that the company is stretching its payables to suppliers excessively, which could potentially strain relationships or affect future purchasing terms. Thus, continued monitoring of this ratio is essential to ensure a balance between efficient cash management and maintaining healthy supplier relationships.
Peer comparison
Dec 31, 2024