Bristol-Myers Squibb Company (BMY)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	4.49	4.30	4.07	4.36	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
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
Working capital turnover	8.04	8.72	12.83	15.99	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

Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate sales. Let's analyze the activity ratios of Bristol-Myers Squibb Company based on the data provided:

1. Inventory Turnover: This ratio measures how many times the company sells and replenishes its inventory during a period. Bristol-Myers Squibb's inventory turnover has shown a positive trend over the observed period, increasing from 3.50 in March 2020 to 12.39 in December 2024. The higher turnover indicates that the company is efficiently managing its inventory levels.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects on its credit sales. Bristol-Myers Squibb's receivables turnover remained relatively stable during the period, ranging from 3.74 in March 2020 to 4.49 in December 2024. A consistent turnover suggests the company has effective credit and collection policies.

3. Payables Turnover: This ratio indicates how efficiently the company pays its suppliers. Bristol-Myers Squibb's payables turnover improved significantly from 3.23 in March 2020 to 8.79 in December 2024. The increasing turnover suggests better management of payables, potentially benefiting from extended payment terms.

4. Working Capital Turnover: This ratio evaluates how efficiently the company converts its working capital into revenue. Bristol-Myers Squibb's working capital turnover fluctuated but generally trended upwards, reaching 15.99 in March 2024. The increasing trend indicates that the company is efficiently utilizing its working capital to generate sales.

Overall, Bristol-Myers Squibb Company's activity ratios demonstrate effective management of assets and liabilities to drive revenue generation and efficiency in operations over the observed period.

Average number of days

		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
Days of inventory on hand (DOH)	days	29.47	40.37	37.99	37.43	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
Days of sales outstanding (DSO)	days	81.21	84.84	89.65	83.74	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
Number of days of payables	days	41.51	42.03	46.32	44.37	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

Based on the provided data, I have calculated the activity ratios for Bristol-Myers Squibb Company over the period from March 31, 2020, to December 31, 2024.

1. Days of Inventory on Hand (DOH):
- The DOH decreased steadily from 104.39 days on March 31, 2020, to 29.47 days on December 31, 2024.
- A decreasing trend in DOH indicates that the company has been able to manage its inventory more efficiently over the years, holding lower levels of inventory relative to its sales.

2. Days of Sales Outstanding (DSO):
- The DSO fluctuated over the period, with some variation from 72.98 days on December 31, 2020, to 89.65 days on June 30, 2024.
- Generally, a higher DSO indicates that the company is taking longer to collect its accounts receivable, which may have an impact on its cash flow and liquidity.

3. Number of Days of Payables:
- The days of payables show a decreasing trend from 112.97 days on March 31, 2020, to 41.51 days on December 31, 2024.
- A lower number of days of payables implies that the company is paying its liabilities more quickly, which could impact its working capital management.

In summary, Bristol-Myers Squibb Company has shown improvements in inventory management efficiency over the years, while its accounts receivable collection period has been somewhat volatile. The company has also been able to effectively manage its payables, reducing the number of days outstanding over the period.

Long-term

	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
Fixed asset turnover	6.77	6.87	6.79	6.75	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
Total asset turnover	0.52	0.51	0.49	0.46	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

The Fixed Asset Turnover ratio of Bristol-Myers Squibb Company has shown a consistent increasing trend from 5.07 in March 2020 to 6.77 in December 2024. This indicates that the company has been able to generate more revenue from its investment in fixed assets over the years.

In contrast, the Total Asset Turnover ratio has also shown an increasing trend, albeit with some fluctuations. It has increased from 0.24 in March 2020 to 0.52 in December 2024. This indicates that the company has become more efficient in generating revenue from all its assets, not just fixed assets, over the years.

Overall, both ratios demonstrate that Bristol-Myers Squibb Company has been able to utilize its assets effectively to generate sales, with the Total Asset Turnover ratio showing a more comprehensive view of the company's asset management efficiency.