Bristol-Myers Squibb Company (BMY)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 45,006,000 | 46,159,000 | 46,385,000 | 42,518,000 | 26,145,000 |
| Receivables | US$ in thousands | 10,921,000 | 9,886,000 | 9,369,000 | 8,501,000 | 7,685,000 |
| Receivables turnover | 4.12 | 4.67 | 4.95 | 5.00 | 3.40 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $45,006,000K ÷ $10,921,000K
= 4.12
The receivables turnover ratio for Bristol-Myers Squibb Co. has shown a decreasing trend over the past five years, from 3.40 in 2019 to 4.12 in 2023. This indicates that the company took longer to collect cash from its customers in 2023 compared to previous years. A higher receivables turnover ratio is generally preferred as it signifies that the company is efficiently managing its accounts receivable and collecting payments in a timely manner. In this case, the decreasing trend in the ratio may warrant further investigation to understand the reasons behind the slowdown in receivables turnover. A possible explanation could be changes in the company's credit policies, customer payment behaviors, or industry trends. Further analysis of the company's receivables management practices and strategies may be necessary to improve the efficiency of cash collection processes.
Peer comparison
Dec 31, 2023