Bristol-Myers Squibb Company (BMY)

Payables 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
Payables	US$ in thousands	3,602,000	3,469,000	3,751,000	3,539,000	3,259,000	2,813,000	3,069,000	3,194,000	3,040,000	2,595,000	2,882,000	2,944,000	2,949,000	2,695,000	3,609,000	2,972,000	2,713,000	2,441,000	2,852,000	3,069,000
Payables turnover		8.79	8.69	7.88	8.23	8.63	10.08	9.25	8.84	9.36	11.42	10.24	10.04	10.24	9.08	5.58	5.30	4.34	4.65	3.73	3.23

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $31,669,000K ÷ $3,602,000K
= 8.79

The payables turnover ratio of Bristol-Myers Squibb Company has shown a general increasing trend from March 31, 2020, to December 31, 2024. The company's ability to manage its accounts payable effectively has improved over time, as indicated by the higher turnover ratios. The ratio increased from 3.23 on March 31, 2020, to 8.79 on December 31, 2024.

A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can indicate strong liquidity management and good relationships with suppliers. However, a very high turnover ratio may also signal that the company is not taking full advantage of credit terms, potentially impacting cash flow and liquidity.

It is worth noting that there were some fluctuations in the payables turnover ratio over the periods analyzed, with some quarters showing higher or lower ratios than others. These fluctuations could be influenced by factors such as changes in purchasing strategies, payment terms negotiated with suppliers, or seasonal variations in operations.

Overall, an increasing trend in the payables turnover ratio is a positive sign for Bristol-Myers Squibb Company, reflecting efficient management of accounts payable and potential strength in working capital management.