Bristol-Myers Squibb Company (BMY)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	1.88	6.09	5.42	5.24
Receivables turnover	4.12	4.36	4.47	4.56	4.67	4.86	5.21	5.52	4.95	4.92	4.92	4.94	5.00	4.89	4.44	3.74	3.40	4.39	4.21	4.08
Payables turnover	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	3.30	3.84	3.54	3.40
Working capital turnover	4.73	10.78	5.70	5.73	8.57	5.94	5.09	6.43	4.07	4.55	4.36	4.38	3.83	2.85	3.19	2.46	2.37	0.81	0.85	2.82

The activity ratios of Bristol-Myers Squibb Co. provide insights into the efficiency of the company's operations and management of its assets and liabilities.

1. Inventory Turnover:
- Bristol-Myers Squibb Co. maintained a relatively stable inventory turnover ratio throughout 2022 and 2023, ranging between 3.93 and 4.39 times per year.
- The company effectively managed its inventory levels, with the ratio indicating how many times the inventory was sold and replaced during the period.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects its accounts receivable.
- Bristol-Myers Squibb Co. showed a consistent performance in collecting receivables, with the ratio ranging from 4.12 to 5.52 times per year over the stated periods.
- The higher turnover ratio suggests efficient credit policies and effective collection efforts.

3. Payables Turnover:
- The payables turnover ratio indicates how many times a company pays off its accounts payable in a period.
- Bristol-Myers Squibb Co. demonstrated a stable payables turnover ratio throughout the quarters, varying between 3.20 and 3.82 times per year.
- A lower ratio may suggest that the company is taking longer to pay its suppliers, potentially indicating strong bargaining power.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue.
- Bristol-Myers Squibb Co. displayed fluctuations in the working capital turnover ratio over the periods, ranging from 4.73 to 10.78 times per year.
- A higher ratio indicates better utilization of working capital to generate revenue, while a lower ratio may signify inefficiencies in managing the company's current assets and liabilities.

Overall, based on the activity ratios provided, Bristol-Myers Squibb Co. appeared to effectively manage its inventory, receivables, payables, and working capital during the observation periods, albeit with some fluctuations in performance.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	34.53	31.35	30.38	33.68	30.02	25.53	26.48	25.99	25.33	32.25	38.73	45.24	64.30	62.65	81.76	104.39	193.98	59.96	67.30	69.61
Days of sales outstanding (DSO)	days	88.57	83.70	81.68	80.04	78.17	75.07	70.10	66.15	73.72	74.22	74.15	73.84	72.98	74.70	82.24	97.59	107.29	83.20	86.70	89.40
Number of days of payables	days	42.27	36.20	39.44	41.29	39.01	31.95	35.63	36.36	35.66	40.18	65.41	68.84	84.11	78.46	97.81	112.97	110.48	94.97	103.16	107.22

Bristol-Myers Squibb Co.'s activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Bristol-Myers Squibb to sell its inventory increased from Q4 2022 to Q1 2023 but remained relatively stable thereafter, ranging between 83 to 93 days.
- A high DOH implies that the company's inventory turnover is relatively low, which may indicate excess inventory levels or potential difficulties in selling products quickly.

2. Days of Sales Outstanding (DSO):
- Bristol-Myers Squibb's DSO decreased steadily from Q4 2022 to Q1 2023, indicating an improvement in the collection of accounts receivable over time.
- The trend suggests that the company has been successful in converting credit sales into cash more efficiently, with DSO ranging from around 66 to 88 days.

3. Number of Days of Payables:
- The number of days Bristol-Myers Squibb takes to pay its suppliers increased from Q4 2022 to Q1 2023 and remained relatively elevated in subsequent quarters.
- A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially to manage cash flow or liquidity constraints.

In conclusion, Bristol-Myers Squibb Co.'s activity ratios depict a mixed efficiency picture. While the company has shown improvements in collecting receivables, its inventory management could be enhanced, and the increasing days of payables may warrant further investigation into the company's cash flow management strategies.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	6.77	6.93	7.11	7.30	7.38	7.74	7.90	7.77	7.67	7.75	7.66	7.43	7.22	6.86	6.03	5.07	4.18	5.00	4.92	4.67
Total asset turnover	0.47	0.49	0.48	0.49	0.48	0.48	0.47	0.46	0.42	0.41	0.40	0.38	0.36	0.31	0.27	0.24	0.20	0.42	0.43	0.67

The fixed asset turnover ratio for Bristol-Myers Squibb Co. has shown a declining trend over the past eight quarters, starting at 7.38 in Q4 2022 and gradually decreasing to 6.77 in Q4 2023. This indicates that the company is generating less revenue per dollar invested in fixed assets over time.

On the other hand, the total asset turnover ratio has been relatively stable, fluctuating between 0.46 and 0.49 over the same period. This suggests that the company's overall efficiency in generating sales from its total assets has remained relatively consistent.

Overall, while the total asset turnover ratio indicates a stable performance in utilizing its total assets to generate sales, the declining trend in the fixed asset turnover ratio may signal potential inefficiencies in the utilization of fixed assets for revenue generation. The company may need to evaluate its fixed asset investments and consider strategies to improve profitability from these assets in the future.